News Digest: Private equity fundraising slowed in 2022; closings down 29%
March 14, 2023
The macroeconomic headwinds faced through most of 2022 resulted in private equity fundraise in the North American markets slowing down considerably as LPs set up supply side barriers to curtail the proliferation of products.
An annual market performance report by BuyoutInsider says $528 billion was raised as capital during 2022 as against $535 billion raised a year ago when the markets were far more robust. However, what was noteworthy is that fund closings fell to their lowest since 2017, declining by as much as 29% over their 2021 levels.
Inflows were relatively on the higher side during 2022, but the steady tightening of supply was visible in the manner that they declined quarter on quarter. The lowest raise was reserved for the fourth quarter of 2022 when $122 billion was raised. However, the average fund size of $640 million was higher by 47% compared to the previous year.