PE fundraising set to beat 2005

Private equity fundraising looks set to beat its record of 2005 with $81bn raised globally in Q1 2006. Data from Private Equity Intelligence shows 110 funds closed over the course of Q1 2006, representing an increase of 56% on the $52bn raised during Q1 2005.

During Q1 2006, 30 buyout funds raised $45bn, 37 venture funds raised $9bn, ten real estate funds raised $6bn and ten fund-of-funds raised an aggregate $6bn in commitments. Mezzanine funds raised $3bn in commitments from eight funds and three natural resources funds and five infrastructure funds raised $8bn and $3bn, respectively.

By region, 56 North America focused funds raised $57bn, 27 Europe focused funds raised $16bn and 27 funds from the rest of the world raised $8bn.

With 750 funds still on the road in 2006 seeking an aggregate target of over $300bn, and with investor appetite remaining strong, fundraising for 2006 looks set to hit an estimated $250bn to $300bn, according to Private Equity Intelligence estimates.