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MARKET TOUCHPOINTS JUNE 2016 Asante Capital is a leading independent private equity placement and advisory group focused on partnering with best-of-breed fund managers in both developed and emerging markets. ROAD WARRIORS YTD 2016 414 FINAL CLOSES What is the typical time frame to raise a private equity fund? This is a common question amongst managers looking to raise institutional capital for the first time. Of the 2,677 funds currently in the market, 12% have been on the road for 1-6 months, whereas 6% have already been on the road for over 3 years. The length of time can be augmented by a well-crafted premarketing effort and a strategic approach to fundraising in what is currently the most congested private equity market to date. 231 107 76 NORTH AMERICA EUROPE ASIA & ROW GLOBAL DRY POWDER CONTINUES TO STACK UP As of June 2016, global dry powder stands at an alarming $1.4 trillion 42% 1 Year or Less 33% 1-2 Years 25% 2-3 Years / + These figures represent a bifurcated market that is showing few signs of equalizing in the near-term. When considering first-time managers alone, the figures become increasingly polarize; 35% of all first-time fund managers close in one year or less, whereas 35% take over two years to close. Source: Preqin Fundraising Momentum Dry powder continues to scale across all asset classes YOY from 2015, representing a near 50% increase from levels seen pre-global financial crisis. Geographically, North America accounts for over 50% of this total with $828.4 billion of dry powder as of June, 2016. This is over $100 billion increase from 2015, or 5x the $23 billion increase seen in both Europe and Asia. Within the $93.6 billion of distressed debt dry powder, special situations funds are the only category sitting on less capital than in 2015. Within the $163 billion of venture capital dry powder, venture debt funds are the only category sitting on less capital than in 2015, with a decrease of $100 million. Source: Preqin; Funds Dry Powder Continued from page 2 PRIVATE DEBT QUADRUPLES SINCE 2005 FUNDRAISING VOLUME At the end of Q2 2016, Over 2500 Funds in the Market Raising Capital Private debt’s dry powder has grown from $42.8bn in 2005 to $194.3bn, representing the largest quantum of capital ever reported. More specifically, distressed debt funds globally hold a record $63.7bn of dry powder, representing an increase over 10% since the end of 2015. There are currently 2,683 funds in the market competing for funding. Of these, over 800 are venture funds compared to c. 600 buyout and growth funds. However, the majority of these funds are micro-VC funds targeting less than $100m fund sizes. Distressed private equity funds are, on average, targeting the largest fund size at c. $800m, compared to venture funds targeting funds 1/8 the size. Source: Preqin Private Debt Portal; Dry Powder SPOTLIGHT ON EMERGING MARKETS 40% 22% 70% Percentage of LPs that anticipate increasing new commitments to EM PE Funds over the next 2 years, compared to 45% last year Source: Preqin Funds Currently Raising FUNDS CLOSED IN 2016 RAISING AT PACE There are more PPMs in the market than ever before. The number of funds in the market represents a near 100% increase since 2008. Over the same period, GPs on The proportion of LPs who plan to decrease commitments to EM in 2016, compared to 16% in 2015 the road are targeting more than a 20% The percentage of LPs who believe that their EM portfolios met or exceeded expectations in 2015 years ago. In 2016, investors have less confidence in emerging markets than in 2015. Over the next 12 months, LPs rate Southeast Asia as the most attractive EM investment geography, followed by India and Sub-Saharan Africa. LPs believe that multiple expansion and operational improvement are more important factors driving returns in emerging markets as compared to developed markets, and team experience is the most important metric used to select managers, rated more highly than track record. Source: EMPEA 3016 Global Limited Partners Survey increase in total capital; 2500 managers are collectively targeting $889 billion, compared to 1304 GPs targeting $705 billion 8 Funds closed in 2016 raising at pace, taking a mere 14 months. This, compared to 17-18 months over the past 4 years. Furthermore, the funds closed YTD in 2016 have reached 111% of the target fund size, tying 2006 for the highest percentage ever recorded. As the market becomes increasingly bifurcated, the winners are closing oversubscribed funds faster than ever before. By the close of Q3, we expect the average number of months to final close to increase as funds that have been on the road for some time begin to close on capital. Source: Preqin Recently Closed Funds This communication is furnished on a strictly confidential basis, for discussion purposes only and may not be relied upon for the purposes of entering into any transaction. Under no circumstances shall this communication be deemed or construed to be an offer to sell or a solicitation of an offer to purchase or subscribe for an interest in any transaction, nor shall it or the fact of its distribution, form the basis of, or be relied upon, in connection with any contracts, arrangement or commitment whatsoever. This communication is only being directed to persons who are legally able to receive it in the jurisdiction in which they are situated. In the UK this would include persons who are exempt from the financial promotion restriction in the Financial Services and Markets Act 2000.