Chart of the Week: Diversified vs. Sector Specific Fundraising

Sector-specific funds are taking a larger chuck of capital each year

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Data from PERE Research & Analytics reveals that, between 2008 and Q1 2015, a total of $742 billion was raised from 1803 funds. Out of this aggregate capital, $193.9 billion was raised from sector-specific funds, accounting for 26 percent. Sector-specific fundraising have slowly taken a larger chunk of the total capital raised, with a high of 31 percent in 2014 after a dip in 2012. In 2014, these funds raised a post-crisis high of $37.5 billion, accounting for 45 percent of all funds closed for the year. The largest sector-specific fund to close in 2014 was the Wessal Capital, which raised €2.5 billion.

In Q1 2015, sector-specific fundraising accounted for 11 percent of the $38 billion raised for the quarter. This represents a dip of six percent from the same time last year when sector-specific funds accounted for 17 percent of the $31.3 billion raised. Additionally, these funds were able to raise more capital in Q1 2014 and in Q1 2013 when a total of $5.3 billion and $10.4 billion was raised respectively. This can be attributed to the lack of megafund closings (funds that raised more than $1 billion) in q1 2015 compared to Q1 2014 and Q1 2013. In Q1 2015, four megafunds held a final close while in Q1 2014, seven megafunds closed and six closed in Q1 2013.