First quarter private equity fundraising has steadily risen in recent years, and Q1 2016 is no exception. Between 1 January and 1 April 2016, $100.91 billion was raised from the close of 150 vehicles globally, making it the strongest first quarter since 2010.
The caution with which investors have approached the market over the past year has clearly paid off. As limited partners increasingly select investments based on the track record of fund managers, and liaise more closely with these managers to achieve the best terms, private equity vehicles continue to raise capital beyond target levels. Advent GPE VIII, the largest vehicle to hold a final close in the quarter, gathered $1 billion more than its original target of $12 billion.
While the outlook for the private equity industry in 2016 appears positive, political and economic volatility in some parts of the world means that certain regions are falling behind others in terms of fundraising. Asia-Pacific is a good example of this. As factors such as the Chinese economic slowdown cause a knock-on effect for the private equity industry there, total capital raised for the region in this quarter is over four times less than the amount gathered at the same point in 2015.