Despite stronger fundraising in the second and third quarters, 2024 fundraising is “tracking at 75% of what it was at this time in 2023,” Preqin noted in its third-quarter update.
Notable fund closes during the quarter included Ares Management’s Ares Senior Direct Lending Fund III at more than $15 billion, Intermediate Capital Group’s ICG Senior Debt Partners Fund 5 at $14.5 billion, and Apollo Global Management’s Apollo/Athene Dedicated Investment Program II at $6 billion, according to Preqin data.
The average private credit fund size has continued growing to $1.4 billion in the third quarter from $1.1 billion in the second quarter. Preqin said the fund size pointed to “fragility as fundraising relies on a narrower base of funds.”
The fundraising strength of the third quarter comes amid election uncertainty, said Nicholas Mairone, assistant vice president for research insights at Preqin.
“I suspect any election-related uncertainty might be reflected in data in early 2025. It takes time to conduct due diligence and close a fund; this may mean that funds that might have closed in Q4 or Q1 2025 see some delays as their active fundraising processes are slowed by the election,” he said in an email to Pensions & Investments.
Preqin does not include real estate debt or infrastructure debt within its tally of private credit fundraising.