Private-equity managers are raising funds at the fastest
pace since at least the 2008 financial crisis.
A Preqin report released Friday shows that
private-equity firms, particularly those that have already
raised funds with more than $1 billion, are able to close new
pools in as fast as two months. Buyout strategies have done particularly
well, with State Street Corp. saying this week that such funds
outperformed venture capital and private debt last year with
gains of 12.52 percent.
This year, North American-focused firms have outpaced their
European peers, reaching fund targets in nine months on
average, according to Preqin, a financial data provider.
Thats a switch from 2016, when European-focused
private-equity firms were the fastest in raising capital,
averaging 14 months.
North Americas speed in fundraising is a
significantly shorter period than seen in any region
historically, Preqin said in its report. Its
perhaps unsurprising given that 61 percent of
investors surveyed by the firm in December identified North
America as the region with the best opportunities in private
According to Preqin, Genstar Capital was the fastest in
meeting its target, raising $3.3 billion for its eighth fund
after spending just two months on the road. That fund closed in
March 2017. Silver Lake, too, had speedy fundraising in 2017,
attracting $15 billion for its fifth fund in just four months.
As for Europe, CVC Capital Partners recently closed a 16
billion (about $18 billion) buyout fund the
largest ever for a European-based private-equity pool
in just five months.
Experienced fund managers such as CVC and Silver Lake, are
best positioned to take advantage of investors strong
appetite for private equity, Preqin noted.
About 55 percent of managers that have closed funds with at
least $1 billion since 2013 have spent less than 12 months
fundraising, compared to 31 percent for those who attracted
less than $500 million for new pools, according to Preqin.
Managers who have raised at least $5 billion are most likely to
exceed their fund target by 25 percent or more, the firm
It is clear that while investor appetite is high, it
is also primarily focused on established fund managers with a
successful track record, Christopher Elvin, head of
private equity at Preqin, said in a statement Friday accompanying the