Global private equity industry raises over $151bn in Q2 2024

Global private equity fundraising reached $151.5bn in Q2 2024, according to alternatives data and insight provider Preqin in its Private Equity Q2 2024 update report.

In a statement on 31 July, Victoria Chernykh, AVP, Research Insights, lead author of the report, "maintains an overall positive view of the asset class, although the poor performance by 2021 and 2022 vintage funds may impact future returns".

She added that investor sentiment towards private equity and private capital improved during the past 12 months, according to the initial findings from the upcoming Investor Outlook report (coming in August 2024).

The quarterly reports provide analysis and data across all alternative asset classes: Private equity; Venture capital; Private debt; Hedge funds; Real estate and Infrastructure.

Looking at private equity fundraising by region, capital raised by North America-focused funds in Q2 2024 reached $105.4bn, representing a 24% increase from the previous quarter.

Meanwhile, Europe-focused funds raised $28.7bn, a 63% decrease. Fundraising in APAC increased by 27% to $14.6bn in the second quarter, still relatively low compared with historical standards.

Victoria Chernykh, AVP, Research Insights, at Preqin said: “Fundraising in North America and Europe stopped moving in sync from mid-2022.

"After this date, if more capital was raised with a focus on North America during a period, less capital was directed toward Europe-focused funds during that period, relative to the previous quarter in each region, respectively – and vice versa.

"This divergence could partly be explained by the global dominance of the US public equity market and its increased volatility during 2022 and 2023, the subsequent denominator effect, and swings in investor sentiment.”

Key report facts:

• Fundraising remains restrained: In Q2 2024, private equity fundraising followed the industry's trend toward concentration where the average value of funds raised increased as the reduction in the number of funds led to a larger drop in aggregate fundraising. 188 funds closed globally to raise $178bn in Q1 2024 compared to 177 funds raising $151.5bn in Q2 2024, representing a 6% decrease in the number of funds closed and a decrease of 15% in total capital raised quarter-on-quarter.

• Increased number and aggregate value of exits: Preqin data shows there were a total of 515 exits in Q2 2024, up by 2% from 505 exits in Q1 2024. The aggregate exit value grew by 47% to $88.7bn from $60.4bn in the previous quarter, resulting in an average exit value of $172mn. Preqin analysts note that it is still too early to determine if this uptick in exits indicates a recovery and whether this trend will continue in the second half of the year.

• Deal value rises, but with fewer deals: Aggregate deal value reached over $120bn in Q2 2024, a 46% increase from more than $82bn in Q1 2024 even with fewer deals being completed. The total number of deals this quarter was 1,733, down 9% from the 1,909 deals in Q1 2024.