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Good news: fundraising for unlisted, closed-end structures in Q1 2024 has more than tripled to $27 billion compared to Q1 2023. The not-so-good news: Q1 2023 was a truly appalling quarter, and the first quarter of 2024 is still the second-worst quarter of the past five years.
What’s more, the vast majority of funds closed in Q1 had been in market for several years and you could argue many of them would have concluded sooner, had the fundraising landscape not been altered due to the impact of our changed macroeconomic environment. Which is another way of saying that this relative recovery should be approached with caution.
One interesting development: the dominance of APAC-focused strategies. Significant closes for regional strategies managed by KKR and Stonepeak accounted for 36 percent of all capital raised in this first quarter. This phenomenon is likely to be repeated in future quarters as the APAC franchises of blue-chip managers grow.
On the sector front, Q1 2024 is illustrative of the trend that has been developing over the past few years: the dominance of renewables/energy transition strategies as a proportion of sector-specific funds.
Looking ahead, $407 billion is being sought by 490 funds in market. As is customary, the top 10 funds in market account for a hefty proportion of the capital being sought, in this case $140 billion, or 34 percent.
Check out our interactive fundraising report above for the full breakdown of fundraising activity in Q1 2024. You can also download the report as a PDF here and download the data here.
