The average size of a private capital fund closed during the third quarter was $654 million, more than twice the size of the average fund five years earlier. Much of the growth was driven by infrastructure and natural resources funds. Most funds raised were in the private equity sector, with 214 funds closing in the third quarter, down from its three-year average of about 400 per quarter, while an aggregate $121 billion in capital was raised, on par with its three-year average.
The 10 largest funds accounted for 55% of all private equity funds closed in the third quarter by assets. That number jumps to 91% for infrastructure and natural resources funds. Those two subgroups historically see fewer funds closed than the other groups, with three-year averages of 13 and 32 funds per quarter, respectively.
The shift to private investments over time has been noted in data collected by Pensions & Investments and, particularly private equity, have been reported as the primary driver of many institutional portfolios.