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Most Prominent US States within Private Equity – January 2014

by Luke Goldsmith

  • 22 Jan 2014
  • PE

According to Preqin’s Fund Manager Profiles online service there are 3,535 private equity firms headquartered in the US. These firms have raised $1.9tn in aggregate capital commitments in the last 10 years. Firms based in California and New York alone account for over 40% of all private equity firms located in the US. Furthermore, 58% of the aggregate capital raised over the last 10 years in the US originates from companies in these two states. Firms located in New York have raised by far the largest amount of capital in the last 10 years, $748bn, which accounts for almost 40% of all the capital raised by firms in the US. In terms of firm location, California holds the most firms, with 801 based in the Pacific coast state. This is followed by New York where there are 663 private equity firm headquarters. Other states to hold a large number of firms are Massachusetts, Illinois and Texas. 

Interestingly, the largest US-based firm in terms of funds raised over the last 10 years is not primarily based in either New York or California. Washington DC-based Carlyle Group has raised over $63bn since 2004, which makes them the largest private equity firm in the world. In 2013 Carlyle Partners VI reached a final close and raised $13bn in investor commitments. 

Analyzing Preqin’s data on fund types, it is evident that the venture capital industry is most prominent in California, with 532 firms focused on this strategy making up two-thirds of all firms based in this US state. This is not surprising as California is home to the Silicon Valley, which serves as a hub to many of the world’s largest technology companies and thousands of start-up organizations. The region is a recogniszd center of high-tech innovation and development. In terms of funds raised over the last 10 years, venture capital firms based in California have raised $116bn, which accounts for 46% of all venture capital funds raised in the US. 

There are 999 US-based firms that have a main strategy of buyout. These firms have raised a combined total of over $1tn in aggregate capital in the last decade. New York contains the highest number of buyout firms, with 249 private equity firms having raised $431bn in capital over the last 10 years. In fact, 90% of all the capital raised by firms focusing on buyout has been garnered by firms located in California, New York, Massachusetts, Texas, Illinois and Washington DC.

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