However, first-time fund managers raised only 6% of the total capital raised by funds that closed in the quarter, compared to a peak of 20% in the fourth quarter of 2010, the report says.
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However, investors remain optimistic towards emerging managers; 46% of investors interviewed in December 2012 by Preqin said that that they will invest, or will consider investing, in first-time funds in 2013.
Helen Kenyon, senior manager at Preqin said: "Private equity fundraising in the first quarter of 2013 was relatively robust, with the total capital raised expected to be at similar levels to Q1 2012. First-time fund managers, however, struggled to attract significant levels of investor capital in the quarter, with only 6% of the capital raised in that period secured by emerging managers, compared to the high of 20% in Q4 2010."
"Though this is concerning news for managers seeking to raise capital for their first fund, many investors remain open to investing with emerging managers, with 46% indicating that they will invest, or will consider investing, in first-time funds in 2013," Kenyon added.
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By GlobalData- 28 first-time funds reached a final close in the first quarter of 2013, the lowest number in any quarter in the
- period 2008-2013
- Two notable first-time funds that closed in Q1 2013 include Geneva Star One, which raised $250mn, andNorthEdge Capital Fund, which closed above its GBP200 million target, raising GBP210 million
- In Q1 2013, 129 funds reached a final close, having raised an aggregate GBP67 billion, compared to the 203 funds that raised $79 billion in Q1 2012
- Buyout funds raised $26 billion in Q1 2013, a 44% increase compared to the $18 billion raised by these funds in Q1 2012
- 29% of all buyout capital raised in the quarter was secured by Cinven V, which was the largest fund to close inQ1 2013, raising EUR5 billion
- Distressed private equity fundraising decreased significantly in Q1 2013, with eight funds closed raising anaggregate $1.6 billion, compared to 13 funds that raised $14.2 billion in Q1 2012
- However, investor appetite for distressed private equity remains strong, with 23% of investors interviewed inDecember 2012 seeking to invest in distressed private equity funds in 2013
- 76% of investors plan to commit either the same amount of capital or more in 2013 than 2012, and a further 10% expect to return to the asset class in 2013, having made no new commitments in 2012
