Private equity fundraising cools in Q3

Despite a sluggish quarter, new data suggests 2014 will finish strong   

Private equity fundraising has slowed in the third quarter after a strong start to the year, according to the latest fundraising data from Private Equity International’s research and analytics division.

In all, $71 billon was raised for Q3.

The first nine months of this year have seen aggregate fundraising totals top $226 billion, and a strong forth quarter is likely, which could bring the year up to a figure near 2013’s post-crisis record of $415 billion.

Established names such as Hellman & Friedman, Blackstone, TPG and Oaktree are all in the market seeking investor support and are among the 2,086 funds currently in market. The largest fund closed in Q3 was Lone Star Fund IX, which raised $7.4 billion. A significant number of funds in market are likely to raise in the billions, meaningfully adding to total numbers for 2014.

Stone Point Capital, Carlyle, and Apollo were among that billion-dollar funds group, each raising $4.5, $3.9, and $2.76 respectively.

“Despite a relatively quiet third quarter, investors are showing continued interest in private equity strategies as they receive returns from previous funds. With more final closes still to be reported from Q3 and a strong final quarter still to come, it is likely that the 2014 full year total will rival the post-crisis record set in 2013,” said Dan Gunner, director of research and analytics, PEI.