PitchBook’s most recent PE Breakdown and U.S. Venture Industry reports reveal that the fundraising environment across both PE and VC is still thriving on the whole. On the PE side, despite declining totals in capital invested and fund count, LPs helped 88% of U.S.-focused PE funds hit their targets during 3Q 2014. Simultaneously, VC vehicles focused on both early and late stage deals are pushing a divide in fund size, with micro-funds proliferating and a considerable cluster of $1 billion+ vehicles closing. LPs seem happy to continue providing more and more capital to both PE and VC firms, albeit to funds with clearly defined strategies and more reasonable goals. The video above provides an update of the most notable LP commitments of 3Q; they are also recapped below. As for the reports, you can find them here.
In August, Swedish pension fund AP Fonden 2 made the largest individual commitment during the quarter by committing $750 million to TIAA-CREF’s Global Agriculture Fund 2.
Taking the second position, South Korea’s National Pension Service (NPS) made a commitment of $375 million to Hamilton Lane’s Co-Investment Fund III.
The New York State Common Retirement Fund also committed $300 million to Lake Montauk Fund-of-Funds II, an “opportunistic fund-of-funds platform,” with Franklin Templeton Investments.
On the VC side, the largest commitment was made by Pennsylvania Public School Employees Retirement System in the amount of $100 million to Tenaya Capital VII.
The second largest was North Carolina Retirement Systems’ $80 million commitment to ARCH Venture Fund VIII.
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