Firms & Funds

DOWNLOAD: Private equity fundraising slows in 2022, closings drop 29%

Capital raised totaled $528bn in 2022, down only slightly from the $535bn secured in the robust market of 2021. But fund closings fell to their lowest level since 2017, down 29% from a year earlier.

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Buyouts’ full-year 2022 fundraising report is now available for download.

Against a backdrop of economic volatility, North American private equity fundraising slowed last year, as overstretched LPs erected supply barriers to proliferating products.

Capital raised totaled $528 billion in 2022, down only slightly from the $535 billion secured in the robust market of 2021. In other words, last year’s inflows were high by historical standards.

On the other hand, fund closings fell to their lowest level since 2017. Some 988 buyout, growth equity, venture capital and other PE vehicles wrapped up in 2022, down 29 percent from a year earlier.

While inflows were relatively high in 2022, they declined steadily by quarter, indicating a gradual tightening of supply. In the fourth quarter, $122 billion of capital was raised, the smallest haul all year.

Fewer fund closings, matched with relatively high inflows, resulted in much larger capital pools last year. The average fund size was $640 million in 2022, up 47 percent from a year earlier, pointing to a stronger LP focus on re-ups with large incumbents.

Check out our interactive fundraising report above for all the details or download the full report here and the data here.