H1 fundraising drops to five-year low

Private equity and real estate secondaries funds raised $12.7bn in the first half, an almost 50% drop year-on-year.

Secondaries fundraising in the first half of 2018 was down $11.7 billion on the same period last year and hit the lowest first-half total in five years.

Private equity and real estate secondaries funds that hit final close raised $12.73 billion in the six months to 30 June, down from $24.45 billion in H1 2017, according to PEI data. This marks the lowest total since H1 2013, when funds raised $10.55 billion.

A total of 17 funds held final closes in the first half, the largest being Landmark Real Estate Partners VIII, which wrapped up fundraising in April on $3.3 billion, making it the largest fund yet raised for real estate secondaries.

Portfolio Advisors Secondary Fund III, Newbury Equity Partners IV and Ardian’s AESF VI were the other secondaries funds to hold final closes on more than $1 billion during the period, the data show.

Ardian, Coller Capital, Lexington Partners and Strategic Partners are among those who are in market, alongside mid-sized players such as ICG and Glendower Capital.

“If you wanted to launch a fund in secondaries or any other strategy, then now is the time to do it,” Sunaina Sinha, managing partner at advisory firm and placement agent Cebile Capital, told Secondaries Investor in April.