September 30, 2024
The "New Funds Tracker" blog is your weekly roundup of newly launched funds in the market, based on Form D filings. This blog delivers critical insights into the latest trends within the investment landscape, offering a comprehensive overview of where capital is flowing and which sectors are gaining momentum.
This week, several new funds have been launched, reflecting a wide range of asset classes and strategies. Below, we’ll discuss the trends across asset classes, industries, and geographic focus.
In this article, we’ll give you a breakdown overview of these new funds, and a highlight into trends across asset classes and the industry.
Private Equity: Private equity continues to dominate the fundraising landscape, with a breadth of new funds launched this week. Key strategies trends include growth equity and secondaries. Growth equity focuses on expanding businesses, offering investors opportunities in high-growth sectors with scalable potential, while private equity secondary investments involve buying existing stakes in private equity funds or portfolios from original investors. Examples of these strategies include Level Equity Growth Partners VI, L.P. and Capital Dynamics TP Secondary 2024 LP.
Additionally, co-investment private equity is also making a mark, with funds like Madison Capital Funding Co-Investment Fund LP focusing on direct co-investments. This strategy allows investors to participate directly in targeted deals alongside other institutional investors, often in sectors where they seek specific exposure, such as financial services and healthcare.
Venture Capital: Venture capital is experiencing robust activity, with a significant portion of these funds focused on early-stage investments, highlighting continued investor confidence in startups and high-growth companies. Notably, the focus on technology remains strong, as firms target innovative business models that can disrupt traditional industries. For instance, multiple venture capital funds are seeking opportunities in FinTech, digital infrastructure, and artificial intelligence, which are driving the next wave of digital transformation.
Early-stage venture funds are key to backing these innovative companies, and examples like American Century Venture Fund II, LP indicate that there is substantial interest in tapping into this high-potential market, despite its inherent risks.
Private Real Estate: Private real estate has been demonstrating steady interest in the sector. The majority of these funds focus on value-add and co-investment real estate strategies, allowing investors to pursue opportunities in specific real estate projects while diversifying their portfolios. Stone Point Capital’s Trident X US Feeder Fund, L.P. exemplifies this trend, with a focus on sectors like healthcare and insurance, highlighting the continued attractiveness of real estate investments tied to these critical industries.
Private Credit: Private credit remains a vital asset class, especially for investors seeking to capitalize on opportunities in the middle-market lending space. Funds like FS Senior Credit Fund II, L.P. continue to focus on structured lending and secured loans, targeting companies that require flexible financing solutions. In a rising interest rate environment, these credit strategies offer compelling opportunities for yield while managing risk through senior secured structures.
Hedge Funds: Investors can expect exposure to more flexible, often higher-risk strategies aimed at capturing market inefficiencies. These funds are primarily focused on long/short equity strategies. One notable example is South River Asset Management. These strategies are providing alternative investment approaches that seek to generate returns uncorrelated with traditional markets.
Private Infrastructure: Funds such as Brookfield Oaktree’s Catalytic Transition Fund are focusing on sectors like sustainable agriculture and infrastructure, which align with global trends around sustainability and food security. These funds are well-positioned to address the increasing demand for sustainable infrastructure solutions as governments and corporations commit to reducing carbon footprints and ensuring long-term environmental resilience.
Energy: The energy sector has emerged as a focal point in this week's fund filings, with several funds prioritizing investments in energy-related projects. Capital Dynamics TP Secondary 2024 LP and Capital Dynamics Hollyport TP Primary 2024 LP are prime examples of funds that are heavily targeting the energy space. As the global transition toward renewable energy accelerates, funds are positioning themselves to capture opportunities in sustainable energy infrastructure and clean energy technologies. This trend highlights the sector’s resilience and growth potential as businesses and governments continue to invest in sustainability initiatives.
Financial Services & Healthcare: Investment in financial services, healthcare, and insurance remains strong this week, particularly within private equity and growth equity strategies. Stone Point Capital’s Trident X US Feeder Fund, L.P. is one example of a fund that focuses on these industries, targeting sectors like financial services, healthcare, and real estate. Healthcare continues to attract substantial investor interest due to ongoing innovation and the growing demand for medical services, pharmaceuticals, and healthcare technology.
Moreover, Madison Capital Funding Co-Investment Fund LP has a broad focus on financial services and healthcare, reflecting the increasing importance of these sectors in today's market. With healthcare innovation being a central theme, particularly after the global pandemic, investors are eager to capitalize on advancements in medical technologies, digital health solutions, and healthcare services.
Technology: Technology remains a dominant industry for investment, with this week’s filings reflecting continued interest in areas such as FinTech, SaaS, and digital infrastructure. For example, American Century Venture Fund II, LP is heavily focused on technology-driven sectors, particularly in early-stage companies. These investments are aimed at supporting innovative businesses that have the potential to disrupt traditional industries, especially within financial technology and digital platforms.
In addition, Capital Dynamics’ funds continue to invest in tech-related opportunities through growth equity strategies, underlining the importance of technology and digital transformation in the private equity space. This week’s filings underscore a clear preference for sectors that offer high scalability and recurring revenue models, particularly in software-driven businesses.
Real Estate: Real estate remains a significant area of interest, especially with the rise of private real estate funds focusing on value-add and co-investment strategies. Stone Point Capital’s Trident X US Feeder Fund, L.P. provides exposure to real estate, further demonstrating the sector's resilience and its potential to generate steady returns. In particular, the healthcare and real estate sectors are closely intertwined, with several funds targeting healthcare-related real estate projects, reflecting the ongoing need for specialized facilities like hospitals and senior living centers.
From a geographic perspective, North America continues to lead, particularly within the energy and private equity sectors. However, the global focus of several funds reflects an increasing desire for international diversification. Global strategies remain prevalent, with investors keen to capitalize on opportunities across both developed and emerging markets.
Firms like Capital Dynamics and Stone Point Capital maintain a global investment outlook, with exposure to multiple regions such as North America, Europe, and beyond. This global perspective allows investors to balance regional risks and access growth markets outside the traditional confines of North American investments.
This week’s new fund filings reflect the ongoing strength of private equity across various strategies, from co-investments to fund of funds. Sectors such as energy, financial services, and healthcare are seeing robust activity, as they present both resilience and growth potential in an evolving economic landscape. Venture capital remains an active space, with continued focus on early-stage, high-growth sectors.
Geographically, the funds are maintaining a global approach, ensuring diverse exposure across multiple regions while maintaining a core focus on North America. As the market continues to adapt to economic and industry shifts, these trends suggest that investors are positioning themselves for both short-term resilience and long-term growth across a range of asset classes and industries.
For more information on these funds and others, book a demo of Dakota Marketplace.
Morgan Holycross is a Marketing Manager at Dakota.
