What's inside - BVCA admin

UK PE Fundraising
Amount raised (£bn)
Amount raised (£m)
16
14
12
10
3000
2500
2000
1500
1000
500
0
8
6
4
2
0
15
7.3
Q1
2007
9497
9.1
Q2
2007
11
2118
5.0
Q3
2007
Source: Thomson Reuters ThomsonOne
UK PE Fundraising by Stage Focus - 12 Months to 30/06/09
Buyouts Generalist Balanced
stage
7
761
Source: Thomson Reuters ThomsonOne
11.7
Q4
2007
2
722
14.1
Q1
2008
Mezzanine
2
307
3.0
Q2
2008
Expansion
3.6
Q3
2008
4
301
Fund of
funds
6.3
Q4
2008
Net amount raised (£m)
Number of funds
3
Early
stage
2.8
Q1
2009
1
69 60
Distressed
debt
1.2
Q2
2009
16
14
12
10
8
6
4
2
0
Number of funds
Fundraising
PE firms have tended to focus more so on their
existing portfolio by using the dry powder
from closed funds to see their companies
through the economic climate. However,
there will come a time when a plethora of
potential investments are realised, as and
when valuations become in sync, so we will
no doubt see fundraising figures significantly
increase in due course. Preqin estimated there
to be $1 trillion of dry powder burning holes in
the pockets’ of the global PE industry. If this is
the case, the short to medium term could see
some very interesting deals.
The chart gives a breakdown of the £13.8bn
raised in the last 12 months by UK PE firms.
It is no surprise that LPs should choose this
alternative asset class, given the returns seen
by the industry. In addition, sovereign wealth
funds (SWFs) are increasingly investing into
the asset class, and their willingness to disclose
more information has been a key feature of
their recent activity, with the world’s largest
SWFs signing up to a code of conduct last
year called the ‘Santiago Principles’. Their
investment mandates are very suited to the
long term nature of the asset class, and it
is only a matter of time before this group of
sophisticated investors become more and
more involved in UK PE.
Summer 2009 BVCA Quarterly Brief 7