In 2023, global private equity fundraising fell 11.5% year over year by aggregate value, marking the lowest total since 2017. Despite this decline, many companies and organizations are turning to private equity as a means of raising funds and expanding their financial resources. As one investor succinctly put it, "We were able to continue to save our money while using other people's money to make us more money."
One such organization considering private equity investment is the Florida State athletic department. Facing financial challenges, the department sees private equity as a potential solution to raise much-needed funds. This move reflects a growing trend among businesses and institutions looking to private equity as a source of capital.
For scale-up businesses, raising private equity funds is a crucial step in achieving growth and success. In this guide, we explore the strategies and considerations that businesses should keep in mind when navigating the world of private equity fundraising. From identifying potential investors to structuring deals, raising private equity requires careful planning and execution.
The first half of 2023 saw a continuation of the macroeconomic uncertainties that impacted investments, exits, and fundraising in the previous year. Despite these challenges, industry giants like KKR, Carlyle, and Blackstone are actively raising money for Europe-specific real estate funds, highlighting the enduring appeal of private equity in today's market.
The Q3 2023 Annual Global Private Market Fundraising Report provides a comprehensive overview of the private market fund landscape, offering insights into the trends and developments shaping the industry. With higher private equity real estate fundraising and an increasing number of funds entering the market, the private equity sector continues to evolve and expand.
Brookfield Asset Management Ltd. recently closed its largest ever private equity fund, raising a staggering $12 billion. This significant fundraising achievement underscores the robust demand for private equity investments and the financial firepower that companies like Brookfield bring to the table.
Overall, private equity fundraising remains a critical aspect of the financial landscape in 2023. As companies seek to secure capital for growth and expansion, private equity offers a valuable source of funding and investment opportunities. By understanding the complexities of private equity fundraising and staying attuned to market trends, businesses can position themselves for success in an increasingly competitive environment.
