PitchBook's 2016 Annual PE & VC Fundraising Report analyzes fundraising and dry powder figures from last year through the lens of what factors drove levels to record highs, and how those might affect the near-term futures of each industry. Venture capital had a banner year, raising more than $51 billion for funds located across North America and Europe. While the fundraising total for private equity might not have been a record, more than $268 billion in commitments was secured, the highest total since 2013, taking its total raised in the past four years to more than $1 trillion.
Capital overhangs for both industries sit at the highest totals we have seen, spurred by the historic fundraising levels and the depressed dealmaking environments we have seen over the past year-plus. Even while fundraising isn't likely to reach levels we have seen over the past few years during 2017, both PE and VC are well stocked for the future.
Report Highlights Include:
- Median fund sizes grew substantially in PE and VC, setting decade highs
- More than 86% of funds hit there target in each industry
- Just 32 first-time VC funds closed last year, though they accounted for more than $3.8 billion in commitments
- PE firms are taking more time between raising funds, with both the median and average time between surpassing seven years for the first time this decade
Note: The report was modified and reuploaded on 6/2/2017 in order to correct a mislabeled chart on page 8, which should have read "PE capital overhang by vintage".