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Laxman Pai, Opalesque Asia:

Private equity and venture capital (PEVC) deal flow continue to surge higher as 510 funds managed to close during Q2 2021, 35% higher than the same period last year, with venture capital now the standout strategy in terms of performance over the last three years.

According to the Q2 2021 Private Equity & Venture Capital Quarterly Report published by Preqin, venture capital funds returned 31.8% during 2020 compared to 23.0% for PEVC overall. Over three years to December 2020, venture capital returned 20.0% compared to 18.5% for PEVC.

$241bn capital raised by private equity funds closed in Q2 2021, said the report.

Preqin also revealed a record number of funds still in the market looking to raise additional capital. A total of 5,248 PEVC funds were seeking $899bn at the end of Q2 2021.

Buyout deal value reached $126bn in North America in 2021 - almost double the value in Q2 2019. By contrast, Europe and Asia registered a 10% increase in quarterly deal value, reaching $72bn.

Mega buyout funds closed during Q2 such as EQT's XI fund which raised a total of $19bn and KKR's North America XIII and Asia Fund IV, which raised $19bn and $15bn respectively, are key contributors to the growth in fundraising.

North America accounts for 56% of total funds and 46% of the total capital raised.

The report also suggests aggregate deal value for venture capital in Q2 is expected to surpass previous quarters following a record quarter of $150bn......................

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