Mon, Jan 20, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Private equity funds raised $600bn in 2019: Preqin

Monday, January 13, 2020

Laxman Pai, Opalesque Asia:

Strong fundraising, robust deal markets, and positive investor sentiment means the private equity funds industry finishes the decade with another banner year, says Preqin report.

Private equity funds closed in 2019 raised almost $600bn. This is the fourth year in a row to surpass half a trillion dollars, and the $595bn secured is the third-highest total on record, surpassed only by 2017 and 2018.

Dealmaking was also strong, despite declining slightly from the previous year. 2019 saw $393bn in buyout deals and $224bn in venture capital deals announced, compared to $493bn and $271bn respectively in 2018. This was boosted in part by sky-high valuations, which saw the average buyout deal size hit a 10-year high of $490mn.

The impact of high valuations on future performance has weighed heavily on fund managers, and many have been slowing the pace of their dealmaking as they make sure not to overpay for acquisitions.

As a result, dry powder has continued to climb and hit a new high of $1.43tn as of the end of 2019. Competition is unlikely to abate in 2020 - at the start of the year, there are over 3,500 funds in the market, collectively seeking $926bn.

The investor outlook for private equity is positive, so capital will continue to flow into these funds in the months ahead.

Christopher Elvin, head of private equity at Preqin said: "2019 marked another excellent year for the private equity industry - fundraising and dealmaking acti......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: PFIC: what U.S. investment funds should be particularly aware of and newly proposed regulations[more]

    By: Kris Hatch, Idan Netser, Fenwick & West LLP U.S.-based venture capital and other funds that invest in foreign companies must be careful to avoid the passive foreign investment company (PFIC) rules, which could substantially increase the tax owed on exit for U.S. taxpaying investors. U.S. per

  2. Renaissance employees could face clawbacks over hedge fund's tax maneuver[more]

    Jim Simons's Renaissance Technologies LLC has produced the greatest investment returns of any hedge fund. Now, it also may be facing an unusually painful tax headache. Last week, Renaissance sent a letter to its current and former employees warning that the Internal Revenue Service could force them

  3. D.E. Shaw's Orienteer strategy posts double-digit returns this year, EcoR1 puts up big gains as the hedge fund scoops up biotech, Ex-hedge fund BlueCrest extends winning run with 50% gain[more]

    D.E. Shaw's Orienteer strategy posts double-digit returns this year From Reuters: D.E. Shaw's Orienteer platform, the backbone of the $50 billion investment firm's multi-asset class offerings, posted high double-digit returns this year, the best ever in its six year lifetime. The Orie

  4. PE/VC: Private equity takes a breather from investing in banks, 2019's 10 defining moments in venture capital, Another record year for PE secondaries amid more GP-led transactions, How 2019 became the best year in private equity's history[more]

    Private equity takes a breather from investing in banks From American Banker: FirstCapital Bancshares of Texas has aspirations of going public in the next couple of years and it's counting on the resources and expertise of private-equity backer Castle Creek Capital to help it realize that

  5. BlackRock's flagship hedge fund Obsidian returns more than 13% in 2019 after stumbling in August, Eiad Asbahi's Prescience Point gained more than 100% last year, Ray Dalio's most prominent fund suffers first annual loss since 2000, Sundheim's D1 posts strong gains[more]

    BlackRock's flagship hedge fund Obsidian returns more than 13% in 2019 after stumbling in August From Business Insider: BlackRock's 23-year-old Obsidian hedge fund bested the average hedge fund, returning more than 13% in 2019 even after losing money in August. The fund, manage