Global private equity fundraising slowed through the third quarter, as 170 funds closed with a combined $117 billion, down from 317 funds that closed with $129 billion in the second quarter, according to Preqin, the alternatives data provider.
Year to date, private equity funds have raised an aggregate $385 billion, down from $388 billion in the first three quarters of 2014.
Preqin reported that the July-to-September tumble was the third consecutive quarterly decline in fundraising, and represented a 29% decrease from the $165 billion raised in Q4 2014, the most recent fundraising peak.
“The number of funds closed is the lowest of any quarter Preqin has on record,” the firm’s head of private equity products, Christopher Elvin, said in a statement.
“Despite recent turmoil in Asia, there has been an increase in fundraising for funds focused on the region, and on Rest of World [outside Asia, North America and Europe]. This, though, does not offset a lack of growth in the mature North American and European markets, as both the number of funds closed and aggregate capital figures continue to fall there.”
According to the report, 45 private equity funds focused on Asia and Rest of World closed in Q3, raising a combined $23 billion. In Q2, 51 funds focused on those regions raised just $11 billion.
Other Fundraising Facts
Besides the aggregate capital raised by funds that held final closes in Q3, 125 funds held interim closes, raising an aggregate $20 billion.