|
|
Bailey McCann, Opalesque New York: Fundraising for traditional drawdown vehicles is down for a third year in a row as private equity struggles to give cash back to investors. The latest data from Pitchbook shows that private equity managers are working through existing dry powder in lieu of raising fresh capital commitments. AUM for the asset class remains on the rise, however, in part because many funds are in the middle of their investment/holdings period.
According to Pitchbook, global private market AUM
managed by GPs will reach $26.7 trillion by the end of 2030,
up from about $20 trillion today. This trajectory implies a 5.7%
annualized growth rate, which is slower than the historical
growth rate and indicates a maturing asset class.
One area where fundraising is rebounding is in venture capital. $60.8 billion was raised by VC funds in the first quarter, higher than the same quarter in 2025. Most of that money went to established large platforms. The move suggests investors are hoping that brand name platforms will be able to navigate the current technology investment cycle better than smaller funds.
Alongside this growth, GPs are leaning on continuation vehicles to offer investors a way to cash out of existing investments. Although their reception by investors has been mixed - at best. ILPA labeling these funds as "conflict vehicles" indicates that perhaps investors would've preferred a more investor friendly liquidity option. 27 continuation funds close...................... To view our full article Click here
|
|
RSS
