Chart of the Week: European Fundraising – YTD 2014

Debt continues to be the dominate strategy for Europe

 COW 12-10 411x 

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Data from PERE Research & Analytics has revealed that a total of $29.9 billion had been raised from 44 European-focused funds in the first three quarters of 2014, accounting for 36 percent of the $82.8 billion raised so far in the year. Europe has led all other regions in total capital raised. Fundraising for the region has grown considerably from the same period in the prior year, when a total of $15.5 billion was raised for the region, a growth of approximately 90 percent. 

Debt has led all strategies globally so far in 2014, with $26.2 billion having been raised on aggregate. European debt fundraising accounts for approximately 40 percent of total debt fundraising with the largest fund to close so far in the year being the M&G Real Estate Debt Fund II, which raised £750 million. Debt has become an increasingly popular strategy for the region where in recent years European debt funds has raised a total of $2 billion in 2011, $3.1 billion in 2012 and $6.8 billion in 2013. With debt funds in market targeting the region, as at the end of Q3 2014, there were a total of 29 European debt funds in market targeting a total of $12.7 billion. The largest debt fund in market for the region is the AgFe Floating Rate Senior Debt Fund, which is targeting £1 billion. 

Other notable funds in market for the region include the core focused RREEF UK Prime Property Fund, which is targeting £1 billion and the opportunistic Patron Capital V, which is looking to raise €1.1 billion.