The More, the Better: $1B+ PE Funds Increase, Capital Decreases
October 15, 2014
It’s no secret that high valuations have had a noted effect on global PE activity this year, particularly deal count. We thought it was interesting, then, to observe 2014 has already seen more buyout and growth funds at $1 billion or more close compared to last year, according to the PitchBook Platform. In fact, this year’s 48 vehicles in that range to date are the most since 2008—though committed capital is still about 27% below 2013's tally.
Click to explore the funds in the PitchBook Platform
One explanation for the number of “smaller” $1 billion+ funds could be an increase in sector-focused vehicles; for example, no fewer than five funds in 2014 have an explicit Asia focus (e.g. Carlyle Asia Partners IV) compared to only one in 2013. We’ve also heard recently that GPs are becoming increasingly willing to focus more on the continued financing of existing portfolio companies as opposed to making new investments; so perhaps an emphasis on value creation has resulted in less time being spent on the fundraising trail, or the financing of portfolios requires both less time and money.
To find your own trends involving $1 billion+ buyout and growth funds, click here.