Wed, Mar 3, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

North American buyout funds AUM stands at $1.38tn

Thursday, January 21, 2021

Laxman Pai, Opalesque Asia:

Fundraising and strong performance have helped North American buyout funds soar in value in recent years. Total assets under management (AUM) stand at $1.38tn as of June 2020, a 3.7x increase since 2005, says Preqin.

Average annual fundraising for North America-focused buyouts has been $117bn per year since 2005, but reached a high of $278bn in 2019, prior to the impact of the pandemic. AUM growth has also been helped by consistently strong performance.

"Most North America-focused buyout funds that Preqin tracks have continued to provide returns in excess of public equity markets. The weighted average net IRR of buyout funds has also exceeded returns attainable through investing in the US small-cap space," said Cameron Joyce, VP, Research Insights at Preqin.

Buyout funds have become an increasingly important part of institutional investors' portfolios. This comes as allocators seek alternatives to actively managed public equity funds, he pointed out in a report.

A structural decline in long-term treasury yields has been key to driving flows into the asset class, as well as proving a crucial contributor to its performance. The US Treasury 10-year yield was more than 4.5% at the end of 2005, compared with close to 1% today.

"Going forward, we expect long-term US Government bond yields to remain at low levels. This should underpin the continued strong performance of the asset class by helping financing costs stay low, and poten......................

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. PE/VC: VC fund investors not raising alarms over SPAC trend, Asian private equity investors focus on business transformation[more]

    VC fund investors not raising alarms over SPAC trend From Axios: Venture capital firms, formed to invest in startups, are increasingly becoming sponsors of SPACs, blank-check companies that bring later-stage businesses into the public markets. It's significant strategy creep, but so fa

  2. PE/VC: Private equity may face return of attention-getting SEC fines under Gensler, VC firms are launching SPACs, Blackstone's Perry says private equity must do more on diversity[more]

    Private equity may face return of attention-getting SEC fines under Gensler From WSJ: The largest U.S. financial regulator has turned its focus away from private equity in recent years, but new agency leadership could mean tougher enforcement and heavier fines for buyout firms, attorneys

  3. SPAC and ESG fads are on collision course with billions at stake[more]

    From Bloomberg: Two of the hottest equity market trends are headed for a clash as some ESG investors are having second thoughts about blank-check firms that have flooded the market. Early signs show that money managers wedded to environmental, social and governance themes are reluctant to buy in

  4. SPACs: Casdin, Corvex are on a SPAC tear, Carvana becomes the darling of hedge funds, YieldStreet explores creating a SPAC of its own, SPAC wave stirs IPO competition[more]

    Casdin, Corvex are on a SPAC tear From Institutional Investor: Casdin Capital and Corvex Management are the latest serial blank-check sponsors.The two hedge fund firms filed plans for their third special purpose acquisition company, or SPAC, just two days after pricing their second one a

  5. Opalesque Exclusive: ESG factors reflect very serious changes on how dollars will be invested in the future[more]

    B. G., Opalesque Geneva: As reported yesterday, credit rating and research company