Fundraising for sector-specific funds is once again on the rise in Q2 2015, revealing continued investor interest in the asset class. TMT, energy, and oil and gas fundraising in particular is gathering pace year on year as investors seek specific markets for their capital. This trend, as discussed in the previous report for Q1 2015, shows that LPs increasingly want to invest with specialist fund managers that they feel confident will provide them with positive returns.
However, aggregate capital gathered from funds closed in the second quarter of 2015 compared with the same quarter in 2014 marks a cooling off of private equity fundraising overall in Q2, with a notable drop of 28 percent. The 180 funds closed in this quarter gathered just $87. 98 billion from institutional investors.
Private equity fundraising in 2015 is faced with the challenges of highly priced developed markets, cheap debt and the high cost structure of private equity within a multi-asset portfolio. In this review, Tsun Man Ho, Senior Portfolio Manager at Univest, discusses this and how Univest manages its private equity portfolio within the current fundraising climate.
Despite these challenges, there are a number of vehicles currently on the road that are being raised by big names targeting large amounts of capital, such as Kohlberg Kravis Roberts (KKR), The Blackstone Group and Advent International. With LPs continually seeking funds raised by trusted managers in an uncertain fundraising climate, these larger vehicles suggest a step closer to the pre-crisis fundraising levels that have been so patiently anticipated in recent years.
For more information on any data that makes up this report, please contact Daniel Humphrey Rodriguez.