Yet the percentage of those funds to exceed $5 billion in commitments continues to rise. There were 13 such funds closed last year, comprising 3.7% of all new buyout vehicles raised—the largest figure in any year since before the start of the financial crisis. In contrast, just 25% of new buyout funds last year closed with fewer than $100 million in commitments—the lowest figure since before the crisis.
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As you’d expect, the figures are much starker when considering those mega-funds in terms of capital raised. Those 13 new vehicles exceeding $5 billion combined to account for a whopping 38.4% of all new PE commitments in 2016, a jump from 30.7% the year before. One takeaway: Private equity’s largest, most established firms are finding it easier than it’s been in a decade to raise capital, while some of the industry’s smaller players are getting squeezed out.