Private equity funds worldwide had a difficult time on the fundraising trail in the second quarter, raising a combined $106.7 billion, down from $164.4 billion in the prior quarter and also down from $165.3 billion in the year-earlier quarter, according to a just-released report from the investment data provider Preqin.
The majority of the funds still in the market trying to raise capital in the second quarter were either buyout or growth capital, with 1,150 buyout funds seeking to raise an aggregate $722.2 billion in capital and 1,202 growth funds aiming to raise a combined $314 billion.
Venture capital funds’ worldwide fundraising also continued a downward trajectory, raising a total of $26.1 billion in the second quarter, a drop from $34.9 billion in the first quarter and $61.6 billion in the quarter that ended June 30, 2022.
Of the 6,230 venture capital funds in the market seeking to raise a total of $451.9 billion in the second quarter, 2% of the number of funds and 28% of the aggregate capital targeted were for funds trying to raise the largest funds of $1 billion or more. The largest share of the venture capital funds in the market were for small funds of $100 million or less, representing 62% of the fund in the market in the second quarter, and 15% of the aggregate capital targeted were for funds aiming to raise.
Private debt funds raised a combined $71.2 billion in the second quarter, up from $38.6 billion in the first quarter but down from $80.2 billion raised in the second quarter of 2022, which was a record fundraising quarter for the asset class.
There were 1,032 private debt funds in the market in the second quarter trying to raise a combined $420 billion. Most were direct lending funds, representing 52.7% of the funds (544 funds) and 60% of the aggregate capital targeted ($251.5 billion).
Real estate funds worldwide had some fundraising success in the second quarter, raising a combined $57 billion in the second quarter, more than double the $22.7 billion raised in the first quarter and an increase from $44.4 billion raised in the year-earlier quarter.
The number and amount of real estate funds closed was but a sliver of the 2,183 real estate funds in the market in the second quarter aiming to raise a total of $577.8 billion in capital. Only three natural resources funds closed in the second quarter with a combined $1.9 billion, up in terms of capital raised from $1.1 billion raised by six funds in the first quarter and $1.6 billion raised by 10 funds in the year-earlier quarter.
From Pensions & Investments, a sibling publication of Crain Currency