Chart of the week: Mega-fundraising on the rise

Aggregate capital gathered by closed-ended private equity funds collecting $3 billion or more increases year-on-year.


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Brookfield Asset Management’s fourth flagship private equity vehicle smashed through its $3.5 billion target to hold a final close on $4 billion, Private Equity International reported recently.

PEI’s Research & Analytics team took a closer look at closed-ended private equity mega-funds globally to find out whether larger vehicles, such as Brookfield Capital Partners IV, are raising more capital collectively.

In 2015, funds worth $3 billion or more accounted for $195 billion of total fundraising, compared with $32 billion five years earlier. This growth took place as the number of funds closed also increased from nine in 2010 to 35 last year.

So far in 2016, 12 funds with a size of $3 billion or more have gathered $87 billion from investors. The largest of these is Ardian Secondary Fund VII, which had garnered $14 billion by April. Advent International GPE VIII and TPG Partners VII also collected more than $10 billion each.

There are currently 51 closed-ended private equity vehicles on the road with target sizes greater than $3 billion, collectively targeting $259 billion. The largest of these is Sino-Singapore Chongqing Connectivity Private Equity Fund seeking $15.2 billion.