Chart of the week: Is Brexit having an impact on UK private equity fundraising?

Closed-ended funds focusing on the UK have raised $1.42bn so far this year.


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As the countdown to the UK’s in-out vote over membership of the European Union continues, private equity managers are anticipating a difficult first half to 2016.

With the pound falling by 5 percent against the dollar in the past 12 months, in-depth analysis is carried out to ascertain whether UK-focused fundraising has held up.

According to data from PEI Research & Analytics, the momentum of 2014-15 has continued, with $1.42 billion raised in the first four months of 2016. The largest of the four vehicles to close during this period was MML Capital Partners Fund VI, a $483 million buyout fund.

This compares with $1.7 billion raised in the first four months of last year – a period dominated by the final close of the $1.52 billion Exponent Private Equity Partners III.

There are currently 32 UK-focused funds in market, four of which aim to raise in excess of $500 million. Oakley Capital Investments’ third flagship vehicle is the most ambitious, with a target size of $827 million.