Dow Jones & Company: Press release

Dow Jones LP Source: Fundraising in U.S. for First Three Quarters Nearly
Reaches 2011 Total; Europe on Pace to Surpass 2011 

NEW YORK, 2012-10-08 14:00 CEST (GLOBE NEWSWIRE) --
Private equity funds in the U.S. raised nearly as much capital in the first
three quarters of 2012 as during the entire 2011 calendar year, according to
Dow Jones LP Source. In addition, 2012 commitments from limited partners in
Europe are on track to surpass 2011 fundraising. 

During the first three quarters of 2012, U.S. private equity firms raised
$130.1 billion for 326 funds, a 36% increase in capital raised despite 19 fewer
fund closings as compared with the first three quarters of 2011, and nearly
matching the $131.5 billion total capital raised during 2011. In the third
quarter alone, 111 U.S. funds raised $40.6 billion as compared with 121 funds
in the second quarter of 2012 that raised $47.3 billion, a decline of 14% in
capital raised. 

In Europe, fewer funds raised more capital during the first three quarters of
2012 compared with the year-ago period. Private equity firms raised $47.8
billion for 118 funds in the first three quarters, a 20% increase in capital
raised. 

However, momentum since the second quarter has slowed. Thirty-seven European
funds raised $8.9 billion during the third quarter, a 42% decrease in the
amount raised compared to last quarter. 

"U.S. private equity firms have worked hard to return capital to their
investors over the past two years and that's given investors both additional
capacity and confidence to fund new commitments," said Laura Kreutzer, managing
editor of Dow Jones Private Equity Analyst. "Although it's far from easy to
raise capital today, more private equity firms have the wind at their backs
than did even a year or two ago." 

Buyout and corporate finance on the rise in the U.S., fueled by spike in
diversified private equity funds 

Several categories of private equity funds in the U.S., including buyout and
corporate finance funds, and diversified funds, saw spikes in fundraising
capital so far this year versus the same three-quarter period last year. 

During the first three quarters of this year, U.S. buyout and corporate finance
funds raised $96.2 billion for 149 funds, a 43% growth in capital compared with
the same period in 2011. 

Most notably, capital raised by diversified private equity funds more than
tripled. Seventeen diversified funds raised $13 billion in the first three
quarters of 2012 compared to the same number of funds raising just $4 billion
in the same period last year. In addition, 29 funds focused solely on buyouts
and acquisitions raised $17.3 billion in capital during the third quarter, 18%
more than the second quarter. 

Mezzanine funds raised $7.9 billion for 21 funds during the first three
quarters of 2012, a 74% increase in capital from the year-ago time period
despite seven fewer funds. 

Investment in secondary funds rose by 42% for the first three quarters of this
year to $5.4 billion. 

Funds-of-funds continue to see a downward trend. During the third quarter, four
funds raised $717 million, the lowest seen since the third quarter of 2009, and
a 50% decline in capital fundraising from the third quarter last year, in which
13 funds raised $1.4 billion. 

The largest fund during the third quarter was Advent International Corp.'s
Advent International GPE VII LP, which raised an initial $8.4 billion of a fund
targeting $9.3 billion. 

The largest closing of the third quarter was Ares Management LLC's Ares
Corporate Opportunities Fund IV LP, a buyout fund that closed at $4.7 billion. 

European private equity funds' momentum slows from second quarter

Despite a high first quarter of committing $23.5 billion, limited partners in
European funds have continued to slow their investment pace over the course of
this year. 

Thirty-seven European funds raised $8.9 billion in the third quarter of 2012, a
42% drop from the second quarter when 36 funds raised $15.4 billion, and a 30%
drop from the third quarter last year when 37 funds raised $12.8 billion. 

During the first three quarters of 2012, 54 buyout and corporate finance funds
raised $32.1 billion, a slight 3% increase in capital from the year-ago time
frame. Within this segment, buyout and acquisition funds saw a 46% decline as
21 funds raised $12.8 billion. 

Mezzanine funds did not fare well in the first three quarters as three funds
raised $475 million, down from $1 billion raised for the same number of funds
during the year-ago time frame. 

Investment in secondary funds increased by 79% during the first three quarters
of this year to $8.7 billion. 

Venture capital fundraising in the U.S. and Europe on track to exceed 2011
totals 

U.S. and European venture capital funds continue on track to exceed fundraising
totals from 2011, which were $19.7 billion from 153 funds and $4 billion among
55 funds, respectively. 

During the first three quarters of 2012, 120 venture capital funds in the U.S.
raised $17.5 billion, a 38% increase in capital from the same time period in
2011. 

The 39 European venture funds, which raised $3.2 billion, saw a 58% increase in
capital from the third quarter of 2011. 

U.S. early-stage venture capital funds raised nearly twice as much capital
compared to the same period last year. Seventy-one funds raised $4.5 billion
during the first three quarters of 2012 versus 63 funds that raised $2.3
billion during the same time period last year. 

The largest venture capital fund that closed during the third quarter in the
U.S. was Sequoia Capital's Sequoia Capital U.S. Growth Fund V LP, a late-stage
venture fund that closed for $950 million. Also during the third quarter, New
Enterprise Associate's New Enterprise Associates XIV LP held a final close on
their $2.6 billion multi-stage venture fund. 

Dow Jones LP Source classifies multiple fund closings (first, interim, final)
separately to provide an accurate view of the fund-raising environment. 

For more information about Dow Jones Private Equity and Venture Capital
products, visit: http://www.dowjones.com/pr/privatemarkets 

About Dow Jones

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