Chart of the week: Co-investment vehicles larger on average

Fundraising for closed-ended co-investment vehicles in 2015 to date beats the 2014 total, while the number of funds closed remains steady.


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In a week that has seen Monument Group partner Alicia Cooney discuss investor interest in co-investments with Private Equity International, PEI’s Research & Analytics team has analysed whether the data reflect this growing appetite.

After just three quarters, 2015 is the second most successful fundraising year since 2011, behind only 2013 when a total of $14.84 billion of capital was gathered.

Co-investment vehicles have raised $9.03 billion to invest globally in 2015 to date. With two months of the year left to go, this figure is almost double the aggregate capital collected in 2014.

As seen throughout the private equity market in general, the number of funds closed has fallen year-on-year while capital raised has increased. However, between 2013 and 2015 to date, the number of co-investment vehicles to have held a final close has remained at a steady rate of around 30 closes each year.

The average size of co-investment vehicles has therefore also increased between 2014 and 2015 to date. In 2014, closed-ended co-investment vehicles raised $140.86 million on average per fund. This year that figure has reached $273.63 million.

Hamilton Lane Co-Investment Fund III collected $1.5 billion from investors by final close in June, making it the largest co-investment vehicle to close in 2015 to date. Insight Venture Partners IX (Co-Investors) follows close behind, at a total of $1.46 billion gathered by fund close in August.