Q2 US PE fund raising

Q2 fund raising for US venture and private equity was strong, registering the highest average commitment size since the year 2000. In Q2, 43 venture funds raised $6.1bn and 38 buyouts and mezzanine funds raised $22.1bn. “The increased average venture fund size was driven by the return of the large firms to the fund raising arena,” said Mark Heesen, president of the National Venture Capital Association. “The majority of these firms raised less than their previous funds and kept within their original targets, which is a good sign as there is a healthy respect for the amount of money that can be invested successfully.”

The first half of 2005 finds private equity fund raising stronger than it has been since the high water mark of 2000/01. In Q1 and Q2, 96 venture funds raised $11.8bn in commitments and 76 buyout/mezzanine funds attracted $35.6bn. Daniel Benkert, senior analyst at Thomson Venture Economics, said: “In the post-bubble era, fund raising has historically picked up strongly in the second half of the year, sometimes even doubling. If this trends holds true for 2005, we are currently on track for the private equity asset class to surpass last year and perhaps see the strongest year since 2000.”