North America-Focused Funds in Market Raised by North America-Based Fund Managers - February 2013

by Luke Goldsmith

  • 13 Feb 2013
  • PE

According to Preqin’s Funds in Market database there are currently 646 funds on the road that are being raised by North America-based fund managers which are exclusively focused on North America. These funds are collectively seeking to raise an aggregate $226.7bn in capital commitments. Of these funds, 268 have already held at least one interim close, collecting a total of $90.1bn.

Breaking these exclusively North America-focused funds being raised in the continent down by type, real estate vehicles are the most numerous and account for 35% of these funds in market. The 227 real estate funds are collectively seeking an aggregate $59.8bn. Out of all private equity fund types, buyout funds are the largest in terms of aggregate target capital. The 111 buyout funds currently in market are seeking an aggregate target size of $91.3bn. This accounts for 40% of all the capital sought by North America-based fund managers focused exclusively on North America.

The average target size of these funds being raised is $351mn, with 23% targeting above this average size. The largest buyout fund currently on the road is Apollo Investment Fund VIII, which is seeking $12bn to invest predominantly in the US. The previous fund in the series raised a substantial $14,676mn in 2008. Walton Street Real Estate Fund VII is the largest real estate fund on the road, looking to raise $2bn to acquire fundamentally sound real estate assets at discount to replacement cost. Aside from buyout and real estate vehicles, KPS Special Situations Fund IV and MHR Institutional Partners IV, a special situation and natural resources fund, are both targeting $3bn to invest exclusively in North America.

Between January and February 2013, 25 exclusively North America-focused funds raised by North America-based fund managers have closed. These funds raised a total of $10.4bn in aggregate capital commitments with an average final close size of $416mn.

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