Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Private equity activity declines significantly in Q2 2020, dry powder climbs towards $1.5tn

Friday, July 10, 2020

Laxman Pai, Opalesque Asia:

The COVID-19 pandemic had relatively little effect on Q1 activity, not impacting European or North American countries until the end of the quarter, said Preqin.

However, the slowdown was very much evident in Q2, with fundraising and buyout backed dealmaking both seeing significant declines.

Just 225 funds closed globally, the lowest quarterly total seen in five years, and the $110bn they raised was the lowest since Q1 2018. This is also compared to 425 funds that secured$150bn in the equivalent quarter of last year.

Buyout-backed dealmaking also declined, with just 888 deals made for a total value of $61bn - around half the level of activity seen in Q2 2019. This is around half the activity seen in Q2 2019, when 1,567 deals were recorded worth a combined $115bn.

But dry powder has continued to climb, and now sits at an estimated $1.48tn, increasing the pressure on managers to find good opportunities. A decline in the targets of funds coming to market would also suggest that managers' attention is turning away from raising capital and towards deploying it.

Meanwhile, venture capital-backed deals were much more stable: 3,280 deals were recorded in Q2 ticking up from 3,099 the previous quarter. The $60bn in total deal value is up from $57bn in Q2 2019.

Looking ahead, there are 3,754 private equity funds in the market globally, seeking a total of $884bn. This is on par with the number of funds recorded in January (3,524), but a ......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1