Preqin’s Private Equity Online tracks 2,927 private capital funds in market globally, collectively targeting over $964bn in institutional capital commitments. Of these vehicles, 51% are seeking to primarily invest in North American opportunities, which is unsurprising given that the region is the largest and most mature market for private capital. In 2016 so far, over $241bn has been raised by North America-focused private capital funds, significantly more than the $130bn raised by the next largest pool of private capital commitments, which targets Europe.
Of the 1,496 North America-focused private capital funds currently aiming to raise over $487bn, real estate, buyout and private debt vehicles are targeting the largest proportions of capital, representing 21%, 20% and 20% of aggregate target capital respectively. While the $104bn targeted by North America-focused private real estate funds is the largest amount of any private capital fund type, buyout and private debt funds make up just 22% of the private capital funds in market, yet 40% of the aggregate capital targeted. The largest North America-focused buyout fund in market is KKR Americas Fund XII, which is targeting $10bn to carry out control-oriented investments in a wide range of industries in North America and Latin America, while Oaktree Capital Management is raising the largest private debt vehicles, Oaktree Opportunities Fund X and Oaktree Opportunities Fund Xb, which are seeking a total of $10bn to take non-control positions in corporate distressed debt.
Venture capital funds make up the highest number (501) of vehicles in market; despite representing a third of the number of funds on the road, these vehicles are looking to raise just 9% of aggregate North America-focused target capital. With a target size of $3bn, the largest venture capital fund in market is Invention Investment Fund III, a seed fund designed to back new ideas, inventions and technologies in the early stages of development – effectively, it is an intellectual property investment fund.
However, the largest primarily North America-focused private capital fund in market follows none of the aforementioned strategies. Targeting $12.5bn in institutional capital commitments, the infrastructure fund Global Infrastructure Partners III will follow a similar investment strategy to its two predecessor funds, investing in brownfield infrastructure projects in a range of sectors including energy, natural resources, transportation, utilities, waste management and water.
In 2015, 721 North America-focused private capital funds reached a final close, securing $377bn in capital. As we approach the final quarter of 2016, approximately two-thirds of the full-year 2015 fundraising total has already been achieved: 477 North America-focused private capital funds have reached a final close for $241bn. While currently behind 2015 fundraising levels, by the end of Q3 2015, 550 North America-focused funds had reached a final close, securing an aggregate $279bn, which illustrates how vital Q4 may be for fund managers attempting to close out their fundraising efforts.