INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media

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Appendix: Global Fundraising Fundraising by Year Aggregate Capital Raised ($bn) 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012 YTD n Aggregate Capital Raised ($bn) n Total # of Funds Closed Source: Private Equity International Data from Private Equity International shows that global fundraising declined over the past few years, reflecting ongoing economic and political instability around the world. During the market peak in 2007, a total of $480 billion was raised by 578 funds reaching a final close. By 2009, only 351 funds closed globally raising just $226 billion, less than half the amount of capital raised in 2007. Since 2009, global uncertainty continued to contribute towards a muted fundraising environment, with both LPs and GPs proceeding with caution amidst a less than favourable environment. LPs who had previously enjoyed the high returns provided from their fund commitments were forced to lessen their allocation to private equity, with some completely exiting the asset class in an effort to balance out and reduce losses in their investment portfolio. Likewise, GPs who had previously raised funds and invested capital with ease were having difficulty attracting capital from LPs, as well as in exiting from portfolio companies and providing existing LPs with a healthy return on their investments. Concerns about Europe’s sovereign debt crisis, alongside widespread political instability in the Middle East and the repercussions of the US debt-ceiling debate, continued to hamper fundraising efforts in 2011 although the total capital raised increased compared to the total raised in 2010. Recent months have shown promising growth in private equity fundraising, with 103 funds reaching a final close raising just over $76 billion in the first four months of 2012. Total # of Funds Closed institutional investor sentiment survey foreword executive summary allocation fees lp – gp relationship future investments and concerns • appendix: global fundraising page 37 www.privateequityconnect.com
Fundraising by Strategy 150 institutional investor sentiment survey foreword executive summary allocation fees lp – gp relationship future investments and concerns appendix: global • fundraising page 38 Aggregate Capital Raised ($bn) 120 90 60 30 0 Mezzanine Buyout Growth / Expansion Capital Venture Capital Fund of Funds n 2009 n 2010 n 2011 n 2012YTD Source: Private Equity International Secondaries Turnaround / Distressed Co-investment The overwhelming trend in fundraising over the past few years has been the prevalence of buyout and venture capital funds, which have consistently raised more capital than other strategies. In 2011 alone, 105 buyout funds reached a final closed, raising a total of $89 billion. Although this figure is lower than the $126 billion raised in 2009, it shows an improvement from 2010’s $75 billion of capital which was raised by 98 funds. Venture capital funds raised a total of $28 billion in 2011, through 109 funds. Bessemer Venture Partners’ Fund VIII raised $1.6 billion for global venture capital opportunities, making it the largest VC fund in 2011. A clear trend in venture capital funds is the dominance of North America and Asia-Pacific as both originators of venture capital funds as well as targets for venture capital investments. Four of the top ten venture funds in 2011 were focused solely on opportunities in North America, with a further four targeting global opportunities and two focusing solely on Asia Pacific. This illustrates that whilst there is a growing trend towards emerging markets for higher returns, investors and fund managers have not yet reduced their reliance on good returns from established markets. Conversely, fund of funds have witnessed a sharp decline with the number of funds reaching a final close in 2011 totalling just 26, down from 49 in 2009. The capital raised has similarly decreased from just over $21.7 billion in 2009 to $6 billion in the 12 months to December 2011. In the first four months of 2012, buyout and venture capital funds have continued to dominate the fundraising market, with capital raised for such funds accounting for 77 percent of the total capital raised this year, to date. The three largest funds to reach a final close this year were also all buyout funds, managed by Blackstone, BC European Capital and Hony Capital. www.privateequityconnect.com
Page 1 and 2: Institutional Investor Sentiment Su
Page 3 and 4: institutional investor sentiment su
Page 5 and 6: LP Respondents Breakdown Where is y
Page 7 and 8: Allocation institutional investor s
Page 9 and 10: Over the long-term, private equity
Page 11 and 12: Co-investments provide LPs with gre
Page 13 and 14: Fee breaks should be negotiated dep
Page 15 and 16: Fees should be calculated in connec
Page 17 and 18: LPs are requesting a “Europeansty
Page 19 and 20: GP fund commitments should be a mea
Page 21 and 22: SWFs prefer to target sectors which
Page 25 and 26: A vast majority of LPs conduct due
Page 27 and 28: There is room for improvement with
Page 29 and 30: Focus on… Endowments Distribution
Page 31 and 32: Strategy Appetite institutional inv
Page 35 and 36: The prevalence of zombie funds has
Page 37: Private equity is coming under incr
Page 41: Published in July 2012 by PEI Secon

INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media

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