Chart of the Week: Mega Fundraising

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Data from PERE Research & Analytics reveals that, between 2008 and the end of 2014, a total of $322.2 billion was raised between 146 megafunds, which are considered funds that raised $1 billion or more. This represents 46 percent of the all capital raised during the time period ($698.6 billion) but only nine percent of all funds that closed (1719). The largest fund to close for the time period was the Blackstone Real Estate Partners VII, which raised $13.3 billion in 2012.

Mega-Funds have regained some traction since the financial crisis of 2008, with 2014 raising a total of $56.4 billion from 25 megafunds. Despite the strong recovery from its lowest point in 2011, 2014 couldn’t quite match similar levels from the prior year. In 2013, a total of $66 billion was raised from 33 megafunds. This represents a decrease of 15 percent and 24 percent in total capital raised and number of megafunds closed respectively. With the lack of megafund closings in 2014 compared to 2013, this may indicate a shift in investor preference. It seems like more limited partners are favouring smaller commitments through separate accounts and joint ventures and less traditional fundraising vehicles.