The fundraising industry has always no shortage of luring new managers venturing out in an attempt to build their own legacy. However, raising expectations of investors, alongside with the fund raising fact that the average fund size is getting bigger while number of funds closed are shrinking, perhaps paints a challenging environment for first time fund raisers? This week we attempt to provide a snapshot on how first time managers actually fits into the fundraising climate so far in 2013.
In the first ten months of 2013, 36 unlisted infrastructure funds were raised by 32 different managers, amounting to an aggregate capital of $34.2 billion. 7 funds (19.4%) were raised by debut managers, which accounts to 11.3% ($3.88 billion) of the aggregate capital. The average size of the first time funds in 2013 was $552 million while it was $1.05 billion for non-first time funds in 2013.
Looking at funds in the market, it is slightly more congested with first time managers over experience managers, with 31.7% of all the funds seeking capital at the moment are raising their maiden fund. The average target size of first time funds in the market is at $424 million.