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Fundraising

Private capital fundraising timelines are getting longer and longer

In September, private capital fundraising timelines reached the longest they’ve been in a decade.

Private capital fundraising is taking longer than it has in a decade.

By the end of September, the average period between a private capital fund’s open and close reached 15.8 months, the highest that figure has been since 2012, according to PitchBook’s Q3 2023 Global Private Market Fundraising Report. This report analyzes fundraising across seven private market strategies.

Total private capital fundraising activity is down 27.4% year-over-year, the product of a suppressed deal environment that has inhibited distributions and limited LP capital for additional allocations.

 

For example, private equity had a higher median time-to-close figure this year. While the asset class ended 2022 at a median of 12 months between open and close, the process jumped to 13.9 months by the end of Q3 this year.

In addition to frozen institutional capital, PE funds’ growing target sizes are elongating the capital-gathering process.

This year alone, CVC Capital Partners closed its Fund IX on €26 billion (about $28 billion)—the largest buyout fund ever raised—and Clayton, Dubilier & Rice closed its Fund XII on $26 billion, tied with Blackstone Capital Partners VIII as the second-largest buyout vehicle on record.

“PE is raising ever larger funds,” said Hilary Wiek, PitchBook’s senior strategist and co-author of the report. “If existing LPs aren’t writing large enough checks or coming back at all, GPs will have to look elsewhere for capital, and that’s going to have to take longer.”

 



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