U.S. and European Private Equity Fund-raising Have Best First Half Since 2008
NEW YORK, July 9, 2012
NEW YORK, July 9, 2012 /PRNewswire/ -- Limited partners showed strong support
for U.S. and European private equity funds in the second quarter, helping both
regions achieve the best first half for fund-raising since 2008, according to
Dow Jones LP Source.
In the first half of 2012, U.S. private equity funds raised $86 billion for
235 funds, a 27% increase in capital raised despite a 4% decline in fund
closings from the first half of 2011. In the second quarter alone, U.S. funds
raised $44 billion.
European private equity funds raised $37.3 billion for 79 funds in the first
half of 2012, a 39% increase in capital but a 10% decline in fund closings
compared to the same period last year. In the second quarter, European funds
raised $14.2 billion.
"Overall, private equity firmsproduced a record level of distributions in
2011 and that's paid off in the form of increased commitment volume to the
asset class,"said Laura Kreutzer, managing editor of Dow Jones Private Equity
Analyst. "Limited partners also had a lot of choices given that many veteran
firms returned to the fund-raising trail this year."
Industry-Focused Funds, Venture Fund-Raising On The Rise In The U.S.
U.S. buyout and corporate finance funds raised $59 billion for 108 funds in
the first half, a 30% increase in capital from the year-ago period. Within
this segment, LPs are gravitating toward funds focused on a specific industry
such as financial services, energy or technology. Twenty-three
industry-focused funds raised $13.8 billion during the first half, the
strongest first half on record for these funds. Dow Jones LP Source has been
tracking private equity fund-raising since 2000.
Also within the buyout and corporate finance segment, 44 buyout and
acquisition funds raised $24.3 billion, a 31% increase in capital. Diversified
private equity funds had their best first half on record as 18 funds raised
More money flowed into venture capital in the first half. Eighty-two venture
capital funds raised $13 billion in the first half, a 31% increase in capital
from the same period a year ago. For a detailed report on venture
Mezzanine funds raised $7.2 billion for 17 funds in the first half, more than
double the capital raised in the year-ago period despite two fewer fund
Investment in secondary funds rose 33% to $4.7 billion for 11 funds.
Funds-of-funds bucked the upward trend as capital commitments to the segment
fell 65% to $2.1 billion for 17 funds.
LPs Temper Investment Pace In Europe After Record First Quarter
Limited partners in European funds tempered their investment pace in the
second quarter after committing $23.1 billion in the first quarter, which was
the best first quarter on record. While the $14.2 billion committed in the
second quarter was a much more moderate investment pace, it nearly matched the
$14.6 billion raised during the same period last year.
In Europe, 33 buyout and corporate finance funds raised $23.9 billion in the
first half, an 8% increase in capital. Within this segment, buyout and
acquisition funds saw a 41% decline in capital as 16 funds collected $10.2
billion. Diversified private equity funds made up for the loss by raising
$10.1 billion for 7 funds, more than 10 times the capital collected in the
same period last year for the same number of funds.
Twenty-seven European venture funds raised $2.3 billion, a 26% increase in
capital raised for the same number of fund closings compared to the first half
of last year.
Investment in secondary funds more than quadrupled as eight funds raised $8
billion. Funds-of-funds also saw a significant increase in investment as eight
funds raised $2.8 billion, up from five funds that raised $269 million in the
same period last year.
Mezzanine funds did not fare well in the first half as two funds raised $224
million, down from $1 billion raised for three funds during the first half of
To download charts or link to this report, visit
Dow Jones LP Source classifies multiple fund closings (first, interim, final)
separately to provide an accurate view of the fund-raising environment.
For more information about Dow Jones Private Equity and Venture Capital
products, visit http://www.dowjones.com/pr/privatemarkets.
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