2013 has been a strong year for private equity fundraising collecting $306.7 billion in the first ten months. Global funds secured a third of the capital, collecting $103.8 billion with only 84 funds holding a final close. Warburg Pincus Private Equity XI was the largest global fund to close this year at $11.8 billion, although it fell short of its $12 billion target. Finnish Local Government Pensions Institution (KEVA) and Michigan Department of Treasury are examples of LPs that have committed to the buyout fund. 78 percent of the capital from globally focussed funds was raised by funds that had collected over $1 billion, highlighting the consolidation of capital amongst larger funds.
$94.6 billion was raised by funds focussing on North America within the first ten months of 2013. Before Carlyle’s mammoth $13 billion fund- which is not included in these statistics- Silver Lake Partners IV was the largest North American fund to hold a final close of $10.3 billion, which raised an additional $2.8 billion above its target. Caisse de Depot et Placement du Quebec, Cathay Life Insurance and South Yorkshire Pensions Authority (SYPA) are just some of the LPs that made commitments to the fund.
Earlier this week, Carlyle Partners IV held a final close at $13 billion becoming the largest North American focussed fund to close this year to date. The buyout fund had a target of $10 billion but managed to gain an extra $3 billion in commitments from further LPs. New Jersey Division of Investment was a significant LP to invest in the fund committing $300 million. Other LPs include Old Mutual Investment Group (OMIGSA) and Brederode SA.
Surprisingly Central and Eastern European funds did not raise the least amount of capital. Seven funds held final closes securing $7.33 billion. However, the data is skewed by one fund which accounted for 82 percent of total capital raised. The Georgian Co-investment fund closed at $6 billion – the largest emerging market country specific fund ever to close.