<article><p class="S3l">Private equity fundraising worldwide slowed down in the first quarter of 2018 with 180 funds reaching a final close, collectively securing $80 billion in capital commitments.</p></article>

<p class="S3l">Private equity fundraising worldwide slowed down in the first quarter of 2018 with 180 funds reaching a final close, collectively securing $80 billion in capital commitments.</p>
<p>“Fundraising has slowed in comparison to the previous quarter, when 252 funds raised $102 billion. In fact, Q1 2018 saw the smallest amount of capital raised in the first quarter of any year since 2015, when $74 billion in aggregate capital was secured by 279 vehicles,” a report by industry tracker Preqin said.</p>
<p>Capital remains concentrated among the top managers, with over half (59%) of capital raised in the first quarter secured by the 10 largest funds.</p>
<p>“At the start of Q2 2018, there are a record 2,575 funds in market collectively targeting $844 billion in capital commitments. Despite the variety of investment opportunities, fund manager and fund selection remains critical, and from a GP (general partner) perspective, competition for investor capital remains fierce,” the report said.</p>
<p>According to Preqin, both buyout and venture capital fundraising have experienced similar declines when looking at Q1 fundraising over the past six years. A total of 39 buyout funds reached a final close in Q1 2018, representing a five-year low, the report said.</p>
<p>“Yet, the $52 billion in buyout capital is on par with both Q1 2017 and Q1 2016 levels and well above the $39 billion five-year historical average (2013-2017),” it added.</p>
<p>Venture capital fundraising in Q1 2018 accounted for 14% of aggregate private equity capital raised, although this marked a significant decline in the amount of capital raised and number of funds closed compared to prior years.</p>
<p>“Similar Q1 totals to the $11 billion raised across 92 venture capital vehicles in Q1 2018 have not been seen since Q1 2013, when $7 billion was raised across 83 venture capital funds,” the report said.</p>
<p>Growth funds and funds of funds also saw a drop in fundraising activity in the first quarter.</p>
<p>“There was a six-percentage-point decline in the proportion of aggregate capital secured by growth funds in Q1 2017 (14%) to Q1 2018 (8%). Funds of funds experienced an even greater slowdown compared to Q1 2017: aggregate capital raised dropped 66% from $13 billion in Q1 2017 to $4.6 billion in Q1 2018,” Preqin said.</p>
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<p><img decoding="async" class="img-responsive" title="Venture capital fundraising in Q1 2018 accounted for 14% of aggregate private equity capital raised. Graphic: Mint" src="https://www.livemint.com/rf/Image-621x414/LiveMint/Period2/2018/05/21/Photos/Processed/w-pevc-knSD--621x414@LiveMint.jpg" alt="Venture capital fundraising in Q1 2018 accounted for 14% of aggregate private equity capital raised. Graphic: Mint" /></p>
<div class="img-caption">Venture capital fundraising in Q1 2018 accounted for 14% of aggregate private equity capital raised. Graphic: Mint</div>
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<p><strong>This article was first published on <a href="https://www.livemint.com/Companies/HK8clTbPMPqHtg8nWL1S3H/Private-equity-fundraising-slowed-down-globally-in-Q1-2018.html" target="_blank" rel="noopener">livemint.com</a></strong></p>
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“Fundraising has slowed in comparison to the previous quarter, when 252 funds raised $102 billion. In fact, Q1 2018 saw the smallest amount of capital raised in the first quarter of any year since 2015, when $74 billion in aggregate capital was secured by 279 vehicles,” a report by industry tracker Preqin said.

Private equity fundraising sees a slow down globally in Q1 2018: Preqin

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Private equity fundraising sees a slow down globally in Q1 2018: Preqin

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