private equity & venture · pdf file 4 private equity venture capital spotlight february...

Click here to load reader

Post on 29-Oct-2020

0 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • FIRST-TIME FUND MANAGERS First-time private equity fund managers secured $26bn in capital commitments across 226 funds in 2017. We examine fundraising and performance trends for fi rst-time funds as well as investor appetite for these vehicles.

    Find out more on page 8

    VOLUME 14, ISSUE 2 ■ FEBRUARY 2018

    www.preqin.com/contact [email protected]|

    Alt Credit Intelligence European and US Fund Services Awards: Best Data and Information Provider | Africa Global Funds Awards 2016: Best Research and Data Provider | The Queen’s

    Award for Enterprise: International Trade | HedgeWeek Global Awards: Best Global Hedge Fund Research Provider | CAIA Corporate Recognition Award

    IN THIS ISSUE PRIVATE EQUITY FUNDRAISING IN 2017: A GLOBAL STORY

    In 2017, 921 private equity funds reached a fi nal close, securing just over $453bn, the largest amount of capital raised in any year. In this feature we examine the private equity industry’s year of success.

    Find out more on page 3

    SIGN UP

    Sign up to Spotlight, our free monthly newsletter, providing insights into performance, investors, deals and

    fundraising, powered by Preqin data:

    All data in this newsletter can be downloaded to Excel for free

    PRIVATE EQUITY & VENTURE CAPITAL

    SPOTLIGHT

    FEATURE Private Equity Fundraising in 2017: A Global Story

    3

    FEATURE First-Time Fund Managers

    8

    INDUSTRY NEWS 11

    THE FACTS ■ Consistent Performing Fund Managers ■ Largest Fund

    Managers ■ Largest Investors ■ Performance

    Benchmarks

    13

    15

    16

    18

    CONFERENCES 19 JUST RELEASED: 2018 PREQIN GLOBAL PRIVATE EQUITY & VENTURE CAPITAL REPORT

    2018 PREQIN GLOBAL PRIVATE EQUITY & VENTURE CAPITAL REPORT

    ISBN: 978-1-912116-05-8 $175 / £125 / €150 www.preqin.com

    Order Your Copy Download Sample Pages

    www.preqin.com/gper www.preqin.com/gper www.preqin.com/gper www.preqin.com/about www.preqin.com/contact mailto:[email protected] https://twitter.com/intent/follow?original_referer=https%3A%2F%2Fabout.twitter.com%2Fresources%2Fbuttons&ref_src=twsrc%5Etfw&region=follow_link&screen_name=Preqin&tw_p=followbutton www.google.com/+Preqin https://www.linkedin.com/company/147822?trk=cws-btn-overview-0-0 https://www.preqin.com/go.aspx?lid=24944 www.preqin.com/signup

  • REALISE THE POTENTIAL OF PRIVATE EQUITY IN CHINA 7 - 9 May 2018

    The Four Seasons Hotel, Beijing www.superreturnchina.com

    Dear Spotlight reader,

    We are very pleased to off er a 10% discount to Spotlight readers for registrations to SuperReturn China in Beijing on 7 – 9 May 2018.

    SuperReturn China brings together the leading lights of the Chinese private equity world including:

     300+ global private equity professionals  150+ local and international LPs  100+ world leading GPs

    Elevate your fundraising process

    Following a highly successful edition in 2017, we’re bringing back the Fundraising & LP/GP Relations Summit for 2018 and making it bigger and better than ever before:

     More LP-led sessions.

     More opportunity to be involved in the debate.

     A more valuable experience.

    I hope to see you there!

    Kindest regards

    Mark O’Hare Managing Director, Preqin

    For all bookings & enquiries, please contact the SuperReturn China Team Quote VIP: FKR2452PRQS for your 10% discount Tel: +44 (0)20 3377 3279 Email: g [email protected]

    https://goo.gl/A8d7dg https://goo.gl/A8d7dg mailto:[email protected]

  • © Preqin Ltd. 2018 / www.preqin.com3 Private Equity & Venture Capital Spotlight | February 2018

    PRIVATE EQUITY FUNDRAISING IN 2017: A GLOBAL STORY

    Source: Preqin Private Equity Online

    8% 16% 15% 11% 14% 12% 8% 6% 6% 3%

    35%

    46% 38%

    29% 29% 28% 24% 22% 21%

    17%

    20%

    21%

    19% 26% 26% 23%

    26% 26% 27% 29%

    23%

    11% 15% 21% 21% 23%

    23% 23% 28% 29%

    13% 5% 13% 13% 11% 14% 20% 22% 18% 21%

    0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

    100%

    2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

    Less than 50% 50-99% 100% 101-124% 125% or More

    Fig. 2: Private Equity Funds Closed by Proportion of Target Size Achieved, 2008 - 2017

    Pr op

    or tio

    n of

    F un

    ds C

    lo se

    d

    In 2017, 921 private equity funds reached a fi nal close, securing just over $453bn, the largest amount of capital raised in any year (Fig. 1). This marks the second consecutive year in which annual fundraising has surpassed $400bn, a landmark that has only been achieved once previously in 2007/2008. Although 26% fewer funds closed in comparison to 2016, $39bn more capital was raised by private equity funds closed in 2017 and this fi gure will increase as more data becomes available.

    The positive net distributions that LPs have received since 2011 have driven the stellar fundraising activity seen in recent years. The latest data shows that, while positive net distributions continue, momentum does appear to be slowing: LPs received $66bn in net distributions in H1 2017, compared to $149bn over the whole of 2016. Nonetheless, the results of Preqin’s interviews with investors in December 2017 show that 63% of LPs have a positive perception of private equity, and 53% plan to increase their allocation to private equity in the longer term. As a result, LP capital is likely to continue to fl ow back into the asset class as LPs strive to maintain their allocations.

    CAPITAL CONCENTRATION Of the $453bn raised in 2017, 28% ($125bn) was secured by the 10 largest funds closed, and the 20 largest funds accounted for 42% of all private equity capital raised, nine percentage points higher compared to 2016. There were a number of high-profi le mega fund (funds >$4.5bn) closures in 2017, including Apollo Investment Fund IX on $24.7bn, the largest fund ever to reach a fi nal close. With greater capital concentration seen in recent years, the average size of private equity funds has grown from $384mn in 2016 to $535mn in 2017.

    FUNDRAISING SUCCESS AND TIME ON THE ROAD Even though fewer funds closed in 2017 than in 2016, a larger proportion of funds met or exceeded their original fundraising target, illustrative of the current LP liquidity caused by recent positive net distributions. Half of funds closed in 2017 exceeded their target, with 21% achieving 125% or more of their fundraising goal (Fig. 2). As market conditions have improved, the proportion of funds that fell short of their target has fallen steadily from 53% in 2010 down to just 20% in 2017. On average, funds closed in 2017

    PRIVATE EQUITY FUNDRAISING IN 2017: A GLOBAL STORY We examine the record-breaking private equity fundraising market in 2017, including analysis of fundraising success, time spent on the road and regional fundraising trends.

    Year of Final Close

    18% 9% 10%

    22% 15%14%

    25%26%25%30%

    21%

    16%16%

    27%

    19% 13%

    19%17%21% 20%

    30%

    33% 17%

    14%

    22%

    17%

    14%16%15% 17%

    18% 22%

    25%

    14% 19%

    26%

    20%18%15%

    18%

    8% 14%

    20% 11%13%16%

    14%13%15% 8%

    3% 6% 9% 9% 9% 10% 7% 7% 7%

    6% 1%

    3% 1% 3% 3% 2% 4% 3%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    20 08

    20 09

    20 10

    20 11

    20 12

    20 13

    20 14

    20 15

    20 16

    20 17

    More than 36 Months

    31-36 Months

    25-30 Months

    19-24 Months

    13-18 Months

    7-12 Months

    6 Months or Less

    Source: Preqin Private Equity Online

    Fig. 3: Time Spent on the Road by Private Equity Funds Closed, 2008 - 2017

    Pr op

    or tio

    n of

    F un

    ds C

    lo se

    d

    Fig. 1: Annual Global Private Equity Fundraising, 2008 - 2017

    1,057

    765 877

    1,023 1,006 1,075

    1,201 1,188 1,243

    921

    407

    213 178 226 234

    316 359 344 414 453

    0

    200

    400

    600

    800

    1,000

    1,200

    1,400

    2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

    No. of Funds Closed Aggregate Capital Raised ($bn)

    Source: Preqin Private Equity Online

    Year of Final Close

    Year of Final Close

    120% 82% 88% 95% 90% 94% 101% 104% 104% 107%

    Average Proportion of Target Size Achieved

  • © Preqin Ltd. 2018 / www.preqin.com4 Private Equity & Venture Capital Spotlight | February 2018

    PRIVATE EQUITY FUNDRAISING IN 2017: A GLOBAL STORY

    432 269 289 298

    375 441 549 503

    599 471

    265

    189 160 178 166

    195

    218 200

    219

    188

    255

    240 346 455 369

    338

    347 378

    325

    191

    105

    67 82

    92 96 101

    87 107 100

    71

    0

    200

    400

    600

    800

    1,000

    1,200

    1,400

    20 08

    20 09

    20 10

    20 11

    20 12

    20 13

    20 14

    20 15

    20 16

    20 17

    Rest of World

    Asia

    Europe

    North America

    Source: Preqin Private Equity Online