Capital raising has been quiet in the first few months of 2012. There is no single strong theme as there was in 2011, when a relatively high amount of equity was raised for mezzanine debt. The capital that has been raised so far this year is very focused and not much is for core strategies. A theme later in the year will be a very large group of private equity fund managers starting to raise follow-on funds. Tristan Capital raising €420m for its follow-on Curzon value fund and Orchard Street Investment Management £200m for a second UK special situations fund are out in front of quite a crowd.
The other trend will be capital raising for senior debt funds and for more mezzanine funds. At least a dozen managers of all stripes are targeting debt, as European investors believe the case for investing now is strong. But capital raised to buy non-performing loans is still overwhelmingly American. This year, managers have announced a handful of separate accounts and joint ventures, the largest being LaSalle Investment Management and Quantum Global’s global club, which is for core investments.