At the end of H1 2014, there are a total of 201 funds in the market chasing an estimated value of $132 billion in equity. Fundraising competition has increased slightly when compared to the similar period last year; up from 181 funds chasing $133 billion.
Most fund managers in the market are raising mid cap size fund (between $501 million – $2 billion). This fund range makes up an aggregate target of $69.2 billion, or 52% of the target market size. As seen from the chart, a large volume of mid cap funds in all recent vintage year is still in the market fundraising. This space, whom many fund managers assume is the sweet spot, is also more competitive in the market now.
Of the funds carrying a 2013 vintage year, a big proportion of those are large cap size fund (> $2 billion). Many of these large cap funds have already achieved partial closes and are likely to seal off their fund-raising cycle in the second half of the year. This offer some positive news for the fundraising industry as a whole, especially when fund-raising has been particularly weak first half of this year.