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Laxman Pai, Opalesque Asia:

Over the past five years, venture and growth capital fundraising grew by 240%, driven by the emergence and growth of the so-called unicorns (privately held companies with valuations above $1 billion), said a study.

In contrast, annual buyout fundraising in the US and Europe increased by only 59% in the same period, according to the study by Schroders Capital.

The study, 'Investment Outlook 2022', revealed the strong increases in fundraising for some other private asset strategies, such as infrastructure.

According to Preqin, annual infrastructure fundraising in the US and Europe has increased 170% over the past five years. Interestingly, some other private market asset classes have experienced different dynamics. Notably, real estate, where, according to Preqin, fundraising in the US and Europe grew by only 46% for the same period, the study said.

Over the past two decades, the private assets market has grown extensively, which provides investors with ample opportunities to be very selective and to actively steer the construction of their portfolios.

Numerically, most fund managers are active in the small/mid-sized part of the market, which is also where most transactions take place and what we refer to as the "long tail" of private assets.

When overall fundraising grows strongly - as in the current market - fund managers tend to scale up their fund sizes, and indeed this is playing out today, said the study.

Accord......................

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