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volatility is causing LPs to flee to the safety of large-cap buyout funds,
according to Cebile Capital’s Sunaina Sinh, who spoke to Private Equity International this week about the investor
appetite for European mega-funds.
times of macro-economic uncertainty, investors place their capital with the
largest and most diverse funds, while first-time
fund managers and smaller vehicles miss out. Likewise, the developed
European market will offer a more reliable opportunity for stronger returns
than most emerging economies.
Research & Analytics team analysed the dominance of funds that have
gathered $1 billion or more for the European market, to assess whether this
sentiment is reflected in the data.
2010, European-focused closed-ended private equity vehicles worth $1 billion or
more accounted for 32 percent of total capital raised in the year. Five years
later, these funds were responsible for 73 percent.
the 97 funds that held a final close in 2015, 20 vehicles collected $1 billion
or more from investors. EQT VII was the largest, with $7.56 billion raised by
final close in July.
we near the end of Q1 2016, 51 percent of aggregate capital gathered has come
from funds that have raised $1 billion or more to invest into Europe.
with 24 European-focused vehicles on the road targeting $1 billion or more,
including BC European Capital X which has a target size of $7.84 billion, it is
likely that this proportion will have increased by year end.
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