C-Suite Executives In UK Private Equity, VC Firms See Dry Powder Growing In 2018

Tom Burroughes

14 December 2017

A survey of C-suite private equity and venture capital firms in the UK expect the amount of money that has been raised but not yet invested to climb further next year, driven by high inflows and a shortage of attractively-valued deals.

The views, compiled by , the research firm. As at November this year, private equity vehicles closed in 2017 have raised $406 billion, beating the $403 billion raised by funds for the whole of 2016. That organisation noted that fund managers are raising larger vehicles, with the average size of vehicles closed this year at $542 million, above $434 million for funds closed in 2007. Some “mega funds” have boosted the totals this year, such as the closing of a PE fund, Apollo Investment Fund IX, on $24.7 billion in July, and Silver Lake Partners V ($15 billion), |KKR Americas Fund XII ($13.9 billion) and Vista Equity Partners Fund VI ($11 billion).

With the volume of dry powder expected to reach £1 trillion by the end of 2017 driven by cash-rich but yield-starved institutional investors, the majority (54 per cent) of CFOs and COOs expect valuations to continue heading upwards over the year ahead.