UK fund managers look set to raise considerably less than they had done in 2013. Fundraising for UK managers fell by a quarter when comparing with the first half of last year.
So far in 2014, $26.42 billion has been raised from 14 funds, beating its aggregate target of $23.92 billion. Permira V, Pamplona Capital Partners IV and CVC Asia Pacific Fund IV have been the largest funds to close this year to date collecting $7.26 billion, $4.11 billion and $3.5 billion respectively.
Last year, UK GPs held final closes on 65 funds collecting a total of $66.74 billion. CVC European Equity Partners VI was the largest fund to ever close by a UK manager surpassing its target of €9 billion by €1.91 billion. Hong Kong Monetary Authority, District of Columbia Retirement Board and Graphite Capital are some of the LPs that committed to the fund.
As of 30 June, 116 funds are currently on the road with an aggregate target of $55.46 billion. Of these funds, only two are considered mega funds – Bridgepoint Europe V and Coller International Partners VII – with a target size of $5.48 billion and $5 billion respectively. The way that current fundraising is going for UK managers, it does not seem likely that this year will surpass last year.