Preqin: Nearly 4,000 PE firms looking to raise $1 trillion globally

August 2, 2019 | Private Equity

Never mind that the PE industry is already sitting on a cash chest of $1.54 trillion

Preqin, a provider of data on alternative assets, has issued a report on private equity and venture capital trends during the second quarter of 2019.

Clearly, it’s getting tougher out there for PE fund managers.

Intensive fund raising in recent years has pushed ‘dry powder’ (investible funds waiting to be deployed) to an all time high of $1.54 trillion as at end-June.

Yet, deal-making has been slowing, with buyout and venture capital markets recording fewer deals and smaller ticket sizes during the first half of the year.

Fundraising target of $981 billion

PE funds, almost 4,000 in number, are in the market to raise $981 billion.

The market is skewed however, in favour of size. Just 5% of funds are seeking two-thirds of the capital to be raised, with average individual targets of $1 billion or more.

The big names include Atlas Holdings ($1.7 billion), Alpha PE Fund ($903 million) and Tailwater Capital ($900 million).

It’s crowded, however, down below. Nearly half of the funds in number are chasing just 4% of total capital sought.

So, what’s the attraction?

“Long-term performance is strong, investor appetite is substantial and deal opportunities are certainly out there,” says Preqin.

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