Chart of the week: UK domiciled closed-ended vehicles pick up fundraising pace

Funds raised by managers based in the UK are gathering capital for closed ended private equity vehicles faster year on year


Click here for a larger version

This week it was reported that Prince Andrew has started a campaign to back Britain’s venture capitalists and entrepreneurs, with a Pitch@Palace Event intended to set up companies with successful investors. PEI’s Research & Analytics team has taken this opportunity to analyse the fundraising life of closed ended private equity vehicles raised by UK domiciled managers.

Fund managers have taken an average of 11 months to gather capital for private equity vehicles that have held a final close in 2015 to date. Average time spent on the road by UK-based funds is decreasing as fund managers close vehicles at a faster rate than in previous years. A difference of three months can be seen between funds closed in 2013 and funds closed in 2015 so far.

London-based Rutland Partners spent almost two years gathering $447.64 million for its $510.61 million-targeting Rutland Fund III between February 2013 and January 2015. Comparatively, Palatine Private Equity, headquartered in Manchester, held a final close for Palatine Private Equity Fund III in June 2015. The vehicle had opened in April with a target size of $374.45 million, taking just two months to collect the capital from investors.

Not only is fundraising for UK-based vehicles gathering pace, but funds closed in 2015 to date have also collectively raised $5.92 billion above targets. Intermediate Capital Group took 11 months to raise $4.90 billion for ICG Senior Debt Partners II, $2.73 billion more than its original target size.