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Secondaries fundraising toppled to a three-year low in 2022 as investors reined back on commitments.
Just 58 funds closed across the year, raising a total of $48.8 billion. That figure is down by 32 percent compared with 2021’s commitments and is less than half of the over $100 billion raised by secondaries strategies in 2020.
By number of funds to close, last year marked a six-year low.
Placement agent and advisory firm Triago global chief executive Matthew Swain told Secondaries Investor that a lack of distributions from secondaries funds added to the fundraising slowdown. Secondaries managers have previously been able to leverage the distributions they have made back to investors as a springboard to gain momentum on their next raise.
“When you don’t have the distributions coming back, it’s harder to make the ask,” Swain told Secondaries Investor, adding it’s a psychological effect that has been seen across the board in private markets.
Capital raised in final closes so far this year has already surpassed half the amount of capital raised in full year 2022, with Blackstone’s Strategic Partners unit raising $25 billion for its latest programme in January.
Secondaries vehicles were seeking $104.8 billion as of 6 February, according to Secondaries Investor data.
Click here to download a PDF of the presentation and click here to download the data.