A total of 612 new funds held a final close during 2006, raising a record aggregate $401 billion in new commitments, smashing last year’s record total of $311 billion. This figure is likely to increase even further as news continues to comes in, according to Private Equity Intelligence’s 2007 Global Fundraising Review .
US-focused funds continued to dominate the market, taking 63 percent of the global share in terms of new commitments. Europe continues to attract the interest of investors, with 27 percent of all capital raised in 2006 being committed to funds focusing on this region.
Asian and rest of world funds also grew in prominence, raising 5 percent more than during 2005 with additional closes sure to increase this figure even further, according to the data company.
In total 311 US-focused funds raised an aggregate $252 billion, while 168 Europe-focused funds raised an aggregate $108 billion. There were 133 funds investing in Asia and the rest of world, which raised an aggregate $41 billion
Mega-funds of record breaking size helped to make buyout funds the most successful type in terms of commitments garnered, whilst venture funds equalled buyout in terms of the number of vehicles raised. Real estate funds continued to be increasingly popular with investors, whilst natural resources and infrastructure funds have also been successful in winning commitments from LPs during 2006.
There were 175 buyout and co-investment funds raised, attracting an aggregate $204 billion during 2006, with $96 billion of this coming from just 10 mega-funds greater than $5 billion in size. Real estate private equity funds raised an aggregate $53 billion from 79 new funds in 2006.
In total 174 venture funds achieved a final close in 2006 collecting $42 billion in new commitments, while 65 Fund of funds raised an aggregate $23 billion.