Chart of the week: The changing industrials market

Industrials-specific fundraising rises as capital raised for generalist closed-ended private equity vehicles pursuing the sector falls.

 411

Click here for a larger version 


This week, Southern Europe-focused firm Investindustrial closed its sixth fund on its €2 billion hard-cap after just three months on the road, as reported by Private Equity International.

PEI’s Research & Analytics team have taken this opportunity to look at fundraising in the industrials market globally.

In October, we reported that industrials-specific fundraising had spiked in 2015. By year end, $3.45 billion was collected from the close of 19 vehicles focused exclusively on the sector. This was more than eight times more capital gathered than in the previous year.

In 2016 to date, $2.38 billion has been collected from the close of Investindustrial Fund VI and Alpina Partners Green Growth Equity Fund 2 in February.

Although industrials-specific fundraising is gathering pace, closed-ended private equity funds with industrials as part of a wider remit collected $18.4 billion in 2015, which was under half the amount raised in the previous year.

Sector-specialist managers have gained popularity throughout the market as investors seek niche opportunities with fewer competitors to deliver the best returns. Industrials fundraising looks set to follow this trend.