and Fundraising

This report is an excerpt from: Preqin Quarterly: , Q3 2012. To download the full report please visit: https://www.preqin.com/docs/quarterly/PE/Private_Equity_Quarterly_Q3_2012.pdf Buyout and Venture Capital Fundraising

he third quarter of 2012 saw a total of 18 private equity Fig. 19: Buyout Fundraising by Quarter, Q1 2009 - Q3 2012 Tbuyout funds complete their fundraising process, as shown in Fig. 19. Collectively, these funds raised an aggregate $14.7bn 40 36 35 36 in capital commitments, which accounted for 21% of the total 35 33.9 33 31.4 30 30 31 No. of Funds capital raised throughout the quarter. In comparison to Q2 2012, Closed 30 27.9 27.5 26 26.4 26.1 these fi gures show a $16.7bn, or 53%, decrease in the level of 25 25 26 26 25 25 23 capital raised and a 50% fall in the number of funds closed. 22.8 19.9 20 18.5 18 16.2 15.7 16.4 15.7 14.7 Ares Corporate Opportunities Fund IV was the largest buyout 15 14.1 Aggregate fund to close in Q3 2012, having surpassed its target of $4bn 10 Capital with a fi nal close of $4.7bn. The fund targets private equity Raised ($bn) 5 investments in the form of leveraged control or growth equity transactions in under-capitalized middle market 0 companies based in North America. The second largest fund to

close in Q3 2012 was Asia II. This pan-Asia-focused Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 fund, the second of its type to be raised by Bain Capital, closed Quarter of Final Close in early July 2012 on $2.3bn. It targets investment opportunities Source: Preqin Funds in Market in China, Japan and India and has the fl exibility to do deals in other parts of Asia and the Pacifi c Rim. Fig. 20: Venture Capital Fundraising by Quarter, Q1 2009 - Q3 2012 Fig. 20 highlights the change in levels of venture capital 80 fundraising since Q1 2009. Over the last quarter, a total of 31 73 funds reached a fi nal close, collecting an aggregate $7.1bn in 70 68 62 61 No. of Funds capital commitments. This represents a rise of 20% in terms of 60 57 57 Closed 53 capital raised but a fall of 28% in terms of number of funds closed 51 51 50 compared to Q2 2012, when 43 vehicles raised a total of $5.9bn. 44 45 43 43 40 38 31 The largest venture capital fund to close in Q3 2012 was New 30 Aggregate Enterprise Associates XIV, having raised $2.6bn in capital 20 Capital 13.4 commitments. The fund makes venture capital investments, 10.5 10.9 Raised ($bn) 10 6.5 8.5 6.6 7.5 6.8 7.9 7.1 predominantly early stage, in North America-based companies, 4.9 5.7 4.2 5.3 5.9 and mainly focuses on the IT, energy, technology and healthcare 0 sectors. ARC Energy Fund VII was the second largest venture

capital fund to close in Q3 2012, having raised a total of CAD Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 1.0bn. The vehicle, raised by ARC Financial Corp., targets early Quarter of Final Close stage and start-up investments in companies that are involved Source: Preqin Funds in Market in oil and gas exploration and production across Canada.

Fig. 21: Five Largest Buyout Funds Closed in Q3 2012 Fig. 22: Five Largest Venture Capital Funds Closed in Q3 2012

Fund Firm Size (mn) Fund Firm Size (mn)

Ares Corporate Opportunities Fund New Enterprise 4,700 USD New Enterprise Associates XIV 2,600 USD IV Associates

Bain Capital Asia II Bain Capital 2,300 USD ARC Energy Fund VII ARC Financial Corp. 1,000 CAD

Harvest Partners VI Harvest Partners 1,100 USD GGV Capital IV GGV Capital 625 USD

Burrill Life Sciences Capital Sycamore Partners I Sycamore Partners 1,000 USD Burrill & Company 500 USD Fund IV

Lightyear Fund III Lightyear Capital 954 USD Tenaya Capital VI Tenaya Capital 372 USD

Source: Preqin Funds in Market Source: Preqin Funds in Market

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