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Laxman Pai, Opalesque Asia: With a record number of private equity funds in the market, private equity managers are responding to demand by offering close to $1tn in PE funds, said a study.
"Private equity managers have been busy bringing the new fund to market as the demand for private equity exposure seeing little sign of abating," revealed a study by Preqin.
According to Preqin, as of the start of April 2022, 2,650 funds looking to raise a total of $966bn in capital, which is equivalent to 1.62x the level of trailing twelve months (TTM) global private equity fundraising.
Of the funds in the market, 1,113 are yet to reach their first close, which equates to 42.0% of the total and 61.5% of the total capital targeted.
The report revealed that the popularity of private equity growth strategy appears to remain intact.
Indeed, GPs currently have 851 such funds in the market, representing the highest portion of any strategy at 33% of the total. By comparison, there are 768 buyout strategies in the market, making up 30% of the total offering in private equity. However, given their larger target sizes, they are targeting the lion's share of capital with $492bn.
On the back of the growing appetite from LPs for co-investment opportunities, there are currently 271 co-investment funds in the market globally. However, a further 131 of the 768 buyout funds in the market also offer LPs the opportunity to co-invest, said Preqin.
Meanwhile, a total of 52% of target...................... To view our full article Click here
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