Chart of the Week: Fundraising – Q3 2013 vs. Q3 2014

Q3 2014 overshadows the prior year in nearly every strategy 

 COW 10-15 411x 

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Research & Analytics has decided to take a deeper look into Q3 2014’s fundraising totals and how they compare to a year prior.  

$28.5 billion was raised in Q3 2014, which represents a decrease of five percent from Q3 2013, where a total of $30.1 billion was raised. However, more capital was raised in nearly every strategy, with 2014 on track to outpace 2013’s full year numbers. 

Debt funds led all strategies in Q3 2014, raising an aggregate of $7.9 billion or approximately 28 percent of total capital. Debt fundraising in Q3 2014 had shown a growth of five percent from Q3 2013, where a total of $7.5 billion had been raised. The largest debt fund to close in the quarter, as well as the largest fund to close so far in 2014, was the Lone Star Fund IX which raised $7.4 billion in August.   

Opportunity funds lagged considerably in Q3 2014, raising a total of $2.9 billion. This represent a decrease of 78 percent from a year ago when $13.2 billion was raised. While the strategy didn’t reach the levels of fundraising it did a year prior, opportunity funds may pick up at the end of the year. The opportunistic Blackstone Real Estate Partners Asia has a current size of $4.2 billion, as of July 2014. The fund, which has a target of $4 billion and a hard-cap of $5 billion, is expected to close sometime in Q4 2014.