(January 3, 2013) — A total of $74.6 billion was raised by 114 funds in the fourth quarter of 2012, similar to the $75 billion raised the previous quarter, data firm Preqin has concluded.
Buyout funds contributed the largest proportion of the aggregate capital raised throughout the year of any fund type–104 such funds closed during the period having raised a combined $86.6 billion. Venture capital funds were the most numerous type of fund to cease fundraising; 167 reached a final close and they collected an aggregate $28.2 billion.
During the last quarter of 2012, Preqin noted that North American-focused funds were the most plentiful among those that closed during the quarter, with 58 funds raising an aggregate $44.3 billion in capital commitments. Real estate funds accounted for the largest proportion of capital raised of any fund type during Q4 2012, with 29 funds closing on a combined $22.6 billion.
Meanwhile, aggregate 2012 fundraising reached $311.7 billion, just ahead of the $311 billion raised in 2011. “Fundraising continued to be very challenging in 2012, but the year ended with a slight improvement on the level of fundraising seen in 2011,” said Preqin’s Senior Manager Helen Kenyon. “Since 2008, Preqin has seen the level of fundraising fluctuate around $300 billion each year, so it is positive to see the amount raised in 2012 surpass this.”
“However, we expect the Q4 figure to increase by around 10-20% and exceed the Q3 total as further information becomes available,” a report by the firm noted.
Kenyon added: “With a record number of funds on the road and with the time taken to raise funds increasing slightly, the market will remain very competitive during 2013. Yet investor appetite for the asset class has remained strong and with the majority of LPs satisfied with the performance of their portfolios, it is possible that we may see some further improvement in overall fundraising levels in the year ahead.”
Looking ahead, Preqin’s report concluded that 53% of investors plan to make new commitments in 2013, with a further 34% that may invest opportunistically.
Click here to see Preqin’s full report.
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