INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media
INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media
INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Appendix:<br />
Global<br />
Fundraising<br />
Fundraising by Year<br />
Aggregate Capital Raised ($bn)<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
2007 2008 2009 2010 2011 2012<br />
YTD<br />
n Aggregate Capital Raised ($bn) n Total # of Funds Closed<br />
Source: Private Equity International<br />
Data from Private Equity International shows that global fundraising declined over the past<br />
few years, reflecting ongoing economic and political instability around the world. During<br />
the market peak in 2007, a total of $480 billion was raised by 578 funds reaching a final<br />
close. By 2009, only 351 funds closed globally raising just $226 billion, less than half the<br />
amount of capital raised in 2007.<br />
Since 2009, global uncertainty continued to contribute towards a muted fundraising<br />
environment, with both LPs and GPs proceeding with caution amidst a less than favourable<br />
environment. LPs who had previously enjoyed the high returns provided from their<br />
fund commitments were forced to lessen their allocation to private equity, with some<br />
completely exiting the asset class in an effort to balance out and reduce losses in their<br />
investment portfolio. Likewise, GPs who had previously raised funds and invested capital<br />
with ease were having difficulty attracting capital from LPs, as well as in exiting from<br />
portfolio companies and providing existing LPs with a healthy return on their investments.<br />
Concerns about Europe’s sovereign debt crisis, alongside widespread political instability in<br />
the Middle East and the repercussions of the US debt-ceiling debate, continued to hamper<br />
fundraising efforts in 2011 although the total capital raised increased compared to the total<br />
raised in 2010. Recent months have shown promising growth in private equity fundraising, with<br />
103 funds reaching a final close raising just over $76 billion in the first four months of 2012.<br />
Total # of Funds Closed<br />
institutional<br />
investor<br />
sentiment<br />
survey<br />
foreword<br />
executive summary<br />
allocation<br />
fees<br />
lp – gp relationship<br />
future investments<br />
and concerns<br />
• appendix: global<br />
fundraising<br />
page 37<br />
www.privateequityconnect.com