Chart of the week: Average fund size of European corporate debt funds

A 132 percent increase in the average fund size of European corporate debt funds between Q1 2014 and Q1 2015

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The average fund size for corporate debt funds with a European focus was $1.72 billion in Q1 2015. Compared with Q1 2014, when the average was $0.74 billion, there is a considerable difference of 132 percent. The 2014 average fundraising peak came in Q2 when fund sizes reached $0.93 billion.

In the first quarter of 2015, just two European corporate debt funds held a final close. The larger of the two was Ares Management’s European Loan Programme, which raised $3.32 billion. Levine Leichtman Capital Partners Europe gathered $110.82 million from investors. Although the small number of funds closed in this quarter has had an effect on the average fund size, the European Loan Programme is the largest European corporate debt fund raised between Q1 2014 and Q1 2015.

Once all fund data has been collected, it is likely that fundraising numbers will increase by around 10 percent. This suggests that the difference in average fund sizes between Q1 2014 and Q1 2015 will decrease. However, with the final close of the European Loan Programme in Q1 2015 we can expect the Q1 2015 average fundraising figure to remain above the levels reached in 2014.