Private Debt Intelligence – 2/26/2024

Fundraising concentration remains stable amid 2023’s challenging market conditions

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Despite a difficult 2023, fundraising concentration in private capital markets has remained level for funds and managers in the four years since 2019. Using a Gini co-efficient to demonstrate the distribution of capital across funds shows that fundraising concentration is increasing long-term. However, private capital concentration is impacted by market stresses, such as the dip from the global financial crisis in 2009. Throughout 2023, fundraising was challenged in venture capital and infrastructure, pausing concentration as tougher conditions curtailed larger funds’ ability to successfully raise capital. As private capital matures and GPs raise larger funds, taking a greater share of their core asset class, greater fundraising concentration is likely.

For more, read Preqin’s Insights+ report: The Concentration of Private Capital

(Past performance is no guarantee of future results.)

Contact: William.Bennett-Lynch
William.Bennett-Lynch@preqin.com