3 takeaways from PE & VC Fundraising & Capital Overhang Report
February 27, 2015
Our recently released Fundraising & Capital Overhang Report breaks down dry powder by vintage year, summarizes which fund classes are most successful in collecting commitments and forecasts what all this means for the industry in the years to come. For the main takeaways from the report, watch the video above or peruse the charts below.
With $535 billion in capital overhang through 2Q 2014, the PE industry still needs to make a dent in its massive dry powder cache, which could portend continued strong activity in 2015 even if valuations remain high.
The step-ups in size of 82% of 2014 funds were modest, indicating PE firms are confident and taking advantage of the fundraising climate but are still aware of their overhang.
VC fundraising was similarly healthy. One of the more interesting VC fundraising trends has been the rise of sub-$50 million vehicles, as well as a resurgence in big multistage funds, which implies a possible split toward increased activity in the lower and upper ends of the market.