02
Dedicated secondary buyers
Breakdown of dry powder from dedicated secondary funds¹
- Beginning of Q1 2022 and Q1 2023. Based on secondary survey data and CL market knowledge
- At the beginning of 2023, dry powder from dedicated secondary funds was approximately $108 billion, down 6% from 2022. It was a challenging year for secondary fundraising amid limited available allocations from LPs due to the denominator effect.
- The largest secondary investors with dry powder above $2 billion finished the year with strong fundraising closes, increasing their share of the market above the smaller market participants by eight percentage points.
- At year end, 14 buyers comprised 75% of available capital for deployment which is in line with last year (15 buyers).
Secondary fundraising statistics
- Despite a challenging fundraising environment more broadly, secondary funds raised a record high of $72 billion in 2022, a remarkable 50% increase from 2021, and highlighting investors’ confidence in the market’s long-term prospects.
- The largest buyers continued to dominate fundraising with the top six buyers accounting for 72% share of capital committed, which compares to the 62% share that the top five buyers accounted for in 2021. While mega funds continue to expand, a growing number of new players are entering the market.
- Secondary funds are targeting $109 billion in capital for 2023, which would make it the highest level on record.
- The fundraising pipeline is long with 85% of respondents indicating that they will be seeking new capital in 2023.
Breakdown of dry powder from dedicated secondary funds¹
- Beginning of Q1 2022 and Q1 2023. Based on secondary survey data and CL market knowledge
- At the beginning of 2023, dry powder from dedicated secondary funds was approximately $108 billion, down 6% from 2022. It was a challenging year for secondary fundraising amid limited available allocations from LPs due to the denominator effect.
- The largest secondary investors with dry powder above $2 billion finished the year with strong fundraising closes, increasing their share of the market above the smaller market participants by eight percentage points.
- At year end, 14 buyers comprised of 75% of available capital for deployment which is in line with last year (15 buyers).
Secondary fundraising statistics
- Despite a challenging fundraising environment more broadly, secondary funds raised a record high of $72 billion in 2022, a remarkable 50% increase from 2021, and highlighting investors’ confidence in the market’s long-term prospects.
- The largest buyers continued to dominate fundraising with the top six buyers accounting for 72% share of capital committed, which compares to the 62% share that the top five buyers accounted for in 2021. While mega funds continue to expand, a growing number of new players are entering the market.
- Secondary funds are targeting $109 billion in capital for 2023, which would make it the highest level on record.
- The fundraising pipeline is long with 85% of respondents indicating that they will be seeking new capital in 2023.
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