Funds taking longer to raise in 2017

Funds that closed in 2017 took on average two months longer to raise capital than those that closed last year, with the mean fund size slightly up on 2016.

Secondaries funds to have reached final close this year spent longer in the market than those that closed last year, according to PEI data.

Vehicles that closed in 2017 took an average of 13.5 months from launch to final close, compared with 11.5 months for those which closed last year. Based on funds for which there is complete data, the mean size of funds that closed this year was $1.8 billion, compared with $1.2 billion in 2016.

Twenty-one secondaries funds have closed so far in 2017, of which PEI has opening and closing dates for 16. Twenty-three funds closed in 2016, of which PEI has opening and closing dates for 17.

The average secondaries fund to have closed in 2015 was in the market for 14 months, according to PEI data, and had a mean size of $1.6 billion.

Below are the 10 largest funds to close so far this year.

Fund name Manager Target Total Time in market
Strategic Partners Fund VII Blackstone Strategic Partners $5.75bn $7.5bn 15 months
AlpInvest Secondaries Program VI (ASP VI) AlpInvest Partners $6bn $6.5bn 16 months
Lexington Middle Market Investors IV Lexington Partners $2bn $2.66bn 12 months
NB Secondary Opportunities Fund IV NB Alternatives $2bn $2.5bn 13 months
Hamilton Lane Secondary Fund IV Hamilton Lane $1.25bn $1.9bn 23 months
17Capital Fund 4 17Capital €800m €1.2bn 11 months
Committed Advisors Secondary Fund III Committed Advisors SAS €750m €1.03bn 13 months
ICG Strategic Secondaries Fund II Intermediate Capital Group $1bn $1.1bn 13 months
Hollyport Secondary Opportunities VI Hollyport Capital $400m $500m 10 months
Cubera VIII Cubera Private Equity AS €400m €405m 7 months

Source: PEI