“Private Equity International: Demand for debut funds grows” by Elizabeth Wu featuring Eric Zoller
Please click here to read the full article on Private Equity International’s website: PEI
Firms starting out in the private equity industry tend to target smaller amounts of capital compared to more established managers as they work to build a strong reputation in the field, according to PEI Research and Analytics. But one of the debut funds that closed this year, Atlas Partners I, raised $1 billion in April, making it the largest inaugural fund to close in 2016 so far.
It remains to be seen whether the total raised by debut funds this year will top 2011, which saw the highest amount of capital raised for debut funds in the past five years, with $33.4 billion raised from 140 vehicles.
“LPs are more likely and keen to invest in first-time funds these days because they are being cut out of the more established, larger funds,” Eric Zoller, founder and partner of Sixpoint Partners, told Private Equity International. “LPs are having an increasingly tough time entering sought after funds, irrespective of size.”