Private equity funds raised 30 percent more capital during the first half of 2013 compared to the same period last year, according to data from Private Equity International’s Research and Analytics division.
Globally, 290 funds held final closes on a combined $186.1 billion during the first half of 2013, while 276 funds held a final close on about $142.8 billion through the first six months of 2012. Nearly a quarter of the capital raised through the first half of the year – 23 percent – went to the five largest funds to hold a final close. The average size of funds closed in the first six months of 2013 stood at $642 million, the highest half-year average since the financial crisis.
“These numbers demonstrate the continuing recovering of private equity fundraising,” said Dan Gunner, director of Private Equity International’s Research and Analytics division. “It is likely that 2013’s full-year fundraising total will outstrip any year since the crisis.”
Of the $186.1 billion raised, buyout strategies accounted for $89.1 billion, the highest half-year total since 2008.
The theme of limited partners committing to fewer managers continued during the first half of 2013. In Private Equity International’s latest Limited Partner Sentiment Survey, 93 percent of LPs planned to increase their allocation to the asset class, with roughly a third planning to reduce their total number of GP relationships.
Close to 1,600 funds are targeting a total of $677.8 billion, as of 30 June, with five funds are targeting more than $10 billion. Warburg Pincus’ Fund XI was the largest to close during the period, collecting $11.2 billion in May.
PEI’s fundraising data do not include funds that held interim closes during the first six months of the year.