Global Private Markets Fundraising Report

Rising real assets, declining dry powder and other global fundraising trends

Private fundraising totaled $639 billion in H1, roughly on pace to reach last year’s figure. LPs remained largely undeterred from making commitments, as record distributions soothed fears about the private markets seizing up and the chance to capitalize on dipping valuations kept investors coming back to the table.

But what does the latter half of the year hold? Our Q2 2022 Global Private Markets Fundraising Report (formerly known as the Global Private Fund Strategies Report) follows the flow of capital, tracking the ups and downs of different strategies. The report, sponsored by Altvia, also includes a spotlight on the state of dry powder.

Among the takeaways:

• PE fundraising grew 46% in Q2 from Q1 to top $137 billion, but the slow exit environment is reducing capital flow back to LPs, potentially hindering future commitments.
   
• The uncertain exit landscape, coupled with portfolio markdowns, is also putting pressure on VC fund returns, which may slow new fundraising through the rest of the year. 
   
• Real assets surpassed $44 billion in Q2, a slight dip from Q1, but 2022 remains on pace to overtake not only 2021’s record, but potentially annual totals going back to 2008.
   
• Dry powder looks to be on the decline, falling 13% from 2020’s high to a total of $3.2 trillion as of June 30, with the trend felt more sharply in private equity.