Mid-market funds continue to raise capital successfully

Mid-market funds continue to raise capital successfully despite recent global events and looming macro-economic uncertainty, which have led to increasing signs of an industry-wide slowdown in fundraising.

In addition, some of the big names in private equity are currently absorbing investors’ capital with new mega funds, including Carlyle Fund VIII, which aims to be the biggest PE fund ever raised at $27bn. However, despite both these factors, Langham Hall is seeing lower mid-market and mid-market strategies continue to attract institutional capital, as investors seek exposure to specific industry types or deal sizes. In June, Langham Hall’s Luxembourg office saw nine such funds raise an aggregate of €1.5bn of capital. Managers appear to want to raise capital ahead of a summer slowdown despite certain funds closing below their target size in some cases.

Many funds are taking advantage of emerging healthcare, impact and technology investment opportunities. As such we believe there are opportunities for private fund managers to raise and successfully deploy capital in similar sector-specific strategies. Although undoubtedly there will be a few bumps along the way, caused by inflation and higher interest rates as well as the prospect of a prolonged war in Ukraine, there appears to be on-going confidence that private funds will provide exceptional returns to institutional investors in the long-term.

Since opening in Luxembourg in 2014, Langham Hall has grown to 170 people, servicing blue-chip private equity and real asset fund managers from the UK and Europe. Langham Hall is an award-winning provider of Fund Administration, Depositary and AIFMD services to global fund managers. Please contact us if you would like to discuss this topic further.