News Digest: PE Secondaries fundraising drops by half in 2022
November 1, 2022
The fundraise by private equity secondaries over the first three quarters of 2022 has fallen by as much as 49% to $24.2 billion, Data provided by Secondaries Investor indicates that during the January to September period in 2021, such funds raised a record $47 billion. The number of such vehicles to hold final closes this year till end-September stood at 33.
Fund managers are facing a tough fundraising environment with overstretched LPs facing several pressures around the denominator effect on their portfolios. Analysts believe that the fundraising wasn’t as bad as it appears, given that the 2022 numbers remain their fourth-highest levels for January-September since 2008.
Overall, private equity fundraising thus far in 2022 stood at $516.8 billion as of end-September, which represented a year-on-year decline of $98.6 billion. This figure compares well with the $457.51 billion posted in 2019 and the $467.43 billion in 2017.