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Preqin: Private markets funds raise big money in third quarter, but vary among strategies

Infrastructure, private equity and venture capital deals in the third quarter saw continued momentum, although overall results were mixed when compared to previous quarters, according to news releases from Preqin.

Preqin reported 365 infrastructure deals in the third quarter, worth a combined $88 billion. The number of deals was down from the second quarter's total of 414 deals, but the deal value exceeded that quarter's $55 billion. During the third quarter of 2016, there were 529 infrastructure deals worth $106 billion.

Overall, the first three quarters of 2017 lagged well behind the same period in 2016, totaling 1,282 deals worth $281 billion compared to 1,753 deals worth $335 billion.

Meanwhile, in private equity, Preqin reported 953 deals worth an aggregate $92 billion in the third quarter, compared to 1,047 deals with an aggregate value of $93 billion in the second quarter.

Overall, Preqin reports that the number and value of private equity deals in 2017 looks to be on track to match the volume in the previous year.

In venture capital, Preqin reported 2,362 deals worth a combined $49 billion, the second consecutive record-breaking quarter in terms of aggregate value deals. In the previous quarter, there were 2,512 deals worth a combined $48 billion.

In terms of the number of venture capital deals, the third quarter represented the sixth straight quarter of decline. Overall, in the first three quarters of 2017, a total of 7,552 venture capital-backed deals have been announced compared to 8,792 deals during the same period in 2016.

In a separate report, Preqin reported a total of 742 private capital deals in the first half of 2017. That number includes infrastructure, natural resources, private debt, private equity and real estate. The deals total $391 billion, compared to $384 billion during the same period in 2016.

The report also announced the number of closings and their aggregate amount of investor commitments during the third quarter:

  • in private equity, 181 funds closed on $85 billion in investor commitments during the third quarter, compared to 256 funds raising an aggregate $85 billion the previous quarter;
  • in real estate, 38 funds closed during the third quarter on $20 billion in commitments, compared to 69 funds raising an aggregate $20 billion the previous quarter.
  • in infrastructure, 17 funds closed during the third quarter raising an aggregate $12 billion in investor commitments, compared to 14 raising $12 billion the previous quarter;
  • in natural resources, 18 funds closed during the third quarter on $11 billion in commitments, compared to 20 with $9 billion the previous quarter; and
  • in private debt, 25 funds closed during the third quarter raising $20 billion, compared to 32 funds also raising $20 billion in commitments the previous quarter.