According to Preqin’s Fund Manager Profiles online service, there are currently 9,085 active private equity firms worldwide. Together, these firms have accumulated a total of $3.8tn in capital commitments in the last 10 years. This blog will examine the top 10 cities by aggregate capital raised in the last 10 years, which collectively account for 26% of all private equity firms.
In regards to capital collected in the last decade, eight of the top 10 cities are located in North America, with the remaining two in Europe. New York City has raised the most capital over the last decade, $944bn, and is home to over 8% of all private equity firms globally. San Francisco and Menlo Park, the traditional homes of venture capital in California, have a total of 408 firms that have collectively raised $237bn. The East Coast cities of New York, Boston and Washington have raised 54% of the total capital of all the top 10 cities, testament to the strength of the region.
As seen in the above table, London has both the second highest number of private equity firms and second largest amount of capital raised over the past decade, demonstrating not only its dominance within Europe, but also its prominence internationally. Paris was the only other non-North American city to feature in the top 10, with 183 firms amassing a combined $114bn over the last 10 years.
While Beijing and Shanghai feature in the top 10 cities when ranked by number of firms, their fundraising efforts fail to place them in the top 10 for aggregate capital raised. No Africa- or Latin America-based cities placed in the top 10 rankings by number of firms or capital raised. The highest ranking Latin American city is São Paulo in Brazil, with 62 firms having raised $11bn over the last decade. Johannesburg is Africa’s highest placing city, with 29 firms accumulating a total of $2.3bn.