Private equity assets under management grow to $2.5 trillion
A slowdown in distributions to investors helped private equity’s assets under management reach $2.5 trillion (€2 trillion) last year, a rise of 15% despite the economic turmoil.
Stronger than expected fundraising in the first half of 2008 combined with fewer distributions meant the industry’s total assets – capital raised plus equity invested – rose to $2.49 trillion, according to data provider Preqin.
The figure, which includes real estate funds of $495bn, dwarfs the hedge fund industry, which controlled assets worth $1.56 trillion in October, according to Hedge Fund Research, and is expected to have fallen significantly since.
The overall rise for private equity is less significant than the increase in 2007 when total assets under management rose 32%. The figure has risen 159% since 2003 and the report said the size of the industry could double again over the next few years.
Dry powder – uninvested capital – rose 3% to $1.02 trillion, while unrealised portfolio investments rose 26% to $1.48 trillion, suggesting firms have been unwilling to exit their stakes in the current market.
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