Fund count up, capital raised down has been the theme for fundraising so far in 2019 based on Q1-Q3 data from Private Equity International. 494 funds closed in the first three quarters, up from 368 over the same period in 2018. Capital raised, however, is off by 7.7%, reflecting fewer closings for large funds year-to-date.
PEI’s observations foot with our experience. Cadwalader representations measured by deal count in the U.S. is on pace to end the year 15% higher, while aggregate lender commitments in the first three quarters trended below the prior year. PEI signaled optimism that a number of large funds may cross the fundraising finish line in Q4.
Law360 separately reviewed the largest fund closing in Q3, highlighting China’s growing stature in the private equity industry and the overall continued gravitation of capital to technology strategies.
China Integrated Circuit Industry Investment Fund II represented the largest fund to close during the quarter, raising $29.06 billion. The state-sponsored fund plans to focus on semiconductor development in China. According to the South China Morning Post, the fund operates under China’s Ministry of Industry and Information Technology and Ministry of Finance.
The top 10 funds raised during the quarter included three technology-focused funds, two Asia-focused funds and two secondaries funds, according to Law360 data.
PEI’s Q3 fundraising report is available here; the Law360 report is available by subscription here.