News Digest: Oversubscribed funds raised $30bn above their targets in 2021
April 4, 2022
Private equity funds gathered $733 billion in 2021 through various strategies such as buyouts, venture capital, growth equity and secondaries among others. The top 15 such funds gathered nearly $30 billion over their target of $148 billion that they set out to raise over the 12 months.
PEI data revealed that while it took all the major funds in North America to collectively raise $178 billion through 2018, it took just 15 of them to cross the threshold in 2021. The funds exceeded their target by an average 23% with many of the large PE firms making the most of the robust demand for their funds.
However, analysts at PEI expect a trickier year in 2022 for fundraising for large and small GPs given the mismatch between high targets and small LP allocations. Some funds admitted to have already overallocated for 2022.