<\/p>\n
Bain & Company said the lack of firms raising more than $5bn underlines a drop both in the average fund size and the number of funds closing.<\/p>\n
No buyout fund closed with more than $5bn in the first three months of this year, marking the first time in a decade that the quarterly threshold has not been hit.<\/p>\n
\u201cThe unwanted milestone is a pointed illustration of two recent trends: a decline in the average size of funds raised and a drop in the number of funds closing,\u201d said Bain & Company in its latest mid-year report.<\/p>\n
The consultancy giant said that the slump in fundraising might now have bottomed out, but the hope of a recovery in the inflows of fresh capital has likely been pushed out into next year.<\/p>\n
It found that more than 18,000 private capital funds are on the road, collectively seeking $3.3tn.<\/p>\n
\u201cThat means there\u2019s about $3 of demand out there for every $1 of supply. It remains to be seen how much the emergence of private wealth as a source of funding can ease this mismatch by boosting supply,\u201d Bain & Company noted.<\/p>\n
\u00a0<\/span>The intense competition to raise funds is being exacerbated by cash-starved investors who are waiting for buyout shops to return money before handing out commitments to future funds.<\/p>\n The lack of liquidity has been highlighted by historical fund cash flows which suggest the ratio of distributed to paid-in capital would ordinarily be about 0.8x for US and Western European funds raised in 2018, yet today it stands only a little higher than 0.6x, according to the report.<\/p>\n \u201cLPs are increasingly dissatisfied with partial or minority exits; instead, they are pushing for full, traditional realisations despite the headwinds faced by such transactions,\u201d it added.<\/p>\n Some LPs are pivoting to secondaries deals in order to drum up cash. Bain & Company said that the Chinese sovereign wealth fund, China Investment Corporation, has reportedly been seeking secondary market buyers for about $1bn in private equity investments, while Yale University confirmed it was exploring a sale of private equity fund interests from its endowment.<\/p>\n <\/p>","protected":false},"excerpt":{"rendered":" Bain & Company said the lack of firms raising more than $5bn underlines a drop both in the average fund size and the number of funds closing. No buyout fund closed with more than $5bn in the first three months of this year, marking the first time in a decade that the quarterly threshold has […]<\/p>\n","protected":false},"author":1,"featured_media":4205,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4204","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/06\/Private-equity-2-1000x445.jpg",1000,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/06\/Private-equity-2-463x348.jpg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/06\/Private-equity-2-300x200.jpg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/06\/Private-equity-2.jpg",1000,666,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=4204"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4204\/revisions"}],"predecessor-version":[{"id":4206,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4204\/revisions\/4206"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/4205"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=4204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=4204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=4204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}