Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Venture capital assets under management triples in five years to $1.68tn

Friday, January 14, 2022

Laxman Pai, Opalesque Asia:

Venture capital assets under management triples in five years to $1.68tn Venture capital assets under management (AUM) tripled between December 2016 and March 2021 from $547bn to $1.68tn, along with a marked increase in dry powder from $146bn to $355bn, said a study.

According to the 'Alternatives in 2022 Report' by Preqin, the ratio of dry powder to AUM has actually declined, from 27% in 2016 to 21%, indicating that funds aren't struggling to deploy capital, despite concerns about valuations.

The industry has also diversified, with niche strategies such as crossover funds taking hold. In the first three quarters of 2021, crossover funds were invested in 854 venture deals, amounting to $126bn. This is up 48% year on year in number and 136% in value, said the study.

Indeed, deal activity has been robust. The aggregate value of deals completed in 2021 reached a record $476bn in the first three quarters of 2021, exceeding 2020's $314bn. This is despite the number of deals falling to 15,101 from 18,656 in 2020, indicating that funding rounds have grown larger, driven by soaring valuations and a shift to later-stage investments.

According to the report, start-ups that leverage tech to create solutions in traditional sectors continue to raise more funding, spurring innovation in verticals such as healthtech, fintech, proptech, cleantech, and edtech.

With technology increasingly integrated into our everyday lives, the cybe......................

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