Chart of the Week: Interest in sector focused funds rises

Since 2009, there has been a 75 percent increase in the amount of capital raised for sector specific funds.

 411

 

Click here for larger version

Private Equity International’s annual fundraising numbers reveal that GPs raised $367.98 billion from 1239 sector specific funds since 2009.  Following the crisis, GPs are increasingly specialising in certain sectors and these statistics give testament to this approach.

Between 2009 and 2014, the amount of capital raised for sector specific funds rose by 75 percent. In 2009, First Reserve Fund XII was the largest fund to hold a final close at $8.82 billion, although it fell short of its $12 billion target. Grupo Guayacan Inc, Maryland State Retirement and Pension System and M.J. Murdock Charitable Trust are some of the LPs that committed to the fund.

In 2014, the largest fund to close was Vista Equity Partners V raising $5.79 billion. El Paso Firemen & Policemen's Pension Fund, Alaska Permanent Fund and Kansas Public Employees Retirement System committed to the fund.

The research also indicates that sector focused funds are getting larger, with 18 funds raising above $1 billion in 2014 compared to only six in 2009. 60 percent of total sector specific fundraising in 2014, equivalent to $42.67 billion, was raised by funds in excess of $1 billion in equity.