Chart of the week: More funds are closing fashionably early

Over two-thirds of all funds closed since 2010 spent less than a year on the road.   


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Last week, French asset management firm Capzanine said it wants to hold an €800 million final close on its latest private debt vehicle by the second quarter of 2017, as reported by Private Debt Investor.

Capzanine IV Private Debt aims to join more than 350 closed-ended funds to have completed the fundraising process in less than 12 months since 2010. More than two-thirds of all funds closed since then have finished fundraising within a year, with most doing so in under six months.

Research by PDI Research & Analytics found that the proportion of funds closing within six months increased from 38 percent in 2010 to 46 percent in 2015, a sign that private debt funds are proving more attractive to investors.

Meanwhile, the number of vehicles taking more than two years to complete fundraising has fallen from 19 percent to 6 percent.

Those in the middle haven’t been unaffected, either. In 2015, 23 percent of all funds closed between seven and 12 months, compared with 11 percent in 2010.

So far this year, 57 funds have held a final close. Of these, 38 closed in less than a year.