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The private markets fundraising freeze continued to be felt throughout the third quarter of 2023, according to data from New Private Markets‘ database. Our updated fundraising report shows that only $1.9 billion was raised for impact strategies across all asset classes in Q3, bringing the total for 2023 so far to $8.3 billion. The total for 2022 was over $44 billion.
The fundraising statistics count the final closes of all funds and vehicles with fund-like economics, including co-investment funds, separate accounts and private mandates, with a closed-ended structure.
Fundraising in 2023 has been muted across all private markets. While funds with a sustainability angle have reportedly had more success in capturing the attention of LPs, they have not been spared the slowdown, as the NPM data shows.
“Managers with strong track records are still able to raise funds, but the pace is generally slower, with funds staying open for longer,” Carla Saporito, head of impact investing at JPMorgan Private Bank, told us over the summer.
Umur Hursever, a partner at impact investing firm Lightrock, echoed these sentiments: “The fundraising process, both for funds and companies seeking fresh capital, has prolonged across private equity and venture capital, influenced by investor demand for greater transparency and recalibration of illiquid asset exposure.”
Check out our interactive fundraising report above for the full breakdown of activity. You can also download the data here.