Opalesque Industry Update - The total assets under management for the private equity industry* have grown to a record $2.49tn as of June 2016 (the latest figures available). Preqin’s 2017 Global Private Equity & Venture Capital Report finds that industry assets rose from $2.39tn as of the end of 2015, continuing eight consecutive years of expansion in the wake of the Global Financial Crisis. Strong fundraising has driven this latest growth in assets: the dry powder component of industry AUM increased by $117bn in the first six months of 2016, while the total value of assets held by fund managers (the unrealized value component of AUM) fell slightly. Key Facts from the 2017 Global Private Equity Report:
“2016 was another stellar year for the private equity industry, and total AUM now stands at a record $2.49tn as of June. The question on many people’s minds is ‘how much longer will it continue?’ While the reality is that only time will tell, the industry is well positioned for another strong year in 2017. In a low-interest-rate environment, the asset class continues to appeal to investors looking for high absolute returns and portfolio diversification. This is borne out in the state of the market going into 2017: investor sentiment is extremely high, and there are currently record numbers of funds seeking investment. Many investors are looking to redeploy the capital returned to them back into the asset class, which in turn is stoking an active fundraising market. While asset pricing remains a very real concern for both fund managers and investors, 2017 has the potential to match the successes seen in 2016.” |
Industry Updates
Private Equity assets under management approach $2.5tn
Tuesday, January 31, 2017
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