February 23, 2024
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Vital signs: Many CFOs believe in fundraising despite economic headwinds

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A new report from the Aztec Group and PEI Private Funds found that 80% of CFOs are either actively fundraising or are planning to do so in the next 12 months despite economic headwinds.

The survey included more than 100 U.S. C-Suite individuals of both domestic and international funds, according to the January report.

The report believes this “underscores the resilience and optimism within the industry,” as more than 70% of respondents anticipate their next fund to be larger than the previous one. 

On the other side of the table, the report found that in response to the challenges in attracting new investors, general partners at VC firms are extending fundraising periods, adjusting fund sizes and exploring alternative financial vehicles. 

The report highlights the expectation that fundraising will pick up pace in the latter half of 2024, with a market correction keenly anticipated. 

A key trend identified in the report is the move towards fund managers outsourcing key back-office functions, with 72% of funds now engaging specialist fund administrators. 

β€œThe findings of this report are a clear indicator of the forward-thinking approach of CFOs in the private funds sector. Despite facing unprecedented challenges, the report shows that the majority are not only persevering but are also planning for expansion in the year ahead. This speaks volumes about the underlying strength and potential of the market,” Aztec Group Managing Director James Gow said.

80% β€” of CFOs are fundraising or plan to in the next year

70% β€” of CFOs expect their next round to be larger than their last

72% β€” of general partners in funds are extending fundraising periods to attract new investors