Private equity looking for record capital raising in 2017

Private equity data provider Preqin said that private equity funds currently capital raising are targeting a record $635 billion in assets, including a $100 billion target for the Softbank Vision Fund, which would make it the largest private equity fund ever.

At the start of the second quarter of 2017, Preqin said that 1,908 private equity funds are in the market, aiming to raise a record $635 billion in assets. The funds include the Capital Venture Investment Fund, owned by China, which is aiming to raise $29 billion, and the Apollo Investment Fund IX, aiming to raise $20 billion. In fact, the 10 largest private equity funds on the market are targeting $203 billion in total, 32% of the total assets being raised. Preqin said this highlighted the dominance of the biggest private equity firms.

In terms of regional focus, North America accounts for more than half of the private equity vehicles on the road, with a combined target of $336 billion. Asia has now overtaken Europe as the second most targeted region for fund-raising, with 370 funds seeking $157 billion from investors to deploy in Asia, with three of the five largest private equity funds on the road based in Asia.

Preqin head of private equity products, Christopher Elvin, commented: “Private equity fundraising has become even more competitive at the top end of the industry, with the launch of Softbank’s $100 billion hybrid vehicle and increased participation from state-owned entities in Asia.”