According to Preqin’s Funds in Market online service, there are currently 1,004 funds raising capital focusing primarily on investments in North America-based companies. These funds are collectively targeting just under $345bn in commitments.
Of these North America-focused funds, real estate is the most prominent fund type in relation to aggregate target size, with 280 real estate funds currently in market seeking an aggregate $82bn in commitments. This is followed by buyout funds, with 130 North America-focused funds of this type seeking a total of $71bn. In addition, there are 30 distressed private equity funds in market (which comprises of distressed debt, special situations, and turnaround strategies) targeting $23bn, and 36 North America-focused infrastructure funds hoping to raise an aggregate of $33bn. Interestingly, venture capital funds are the fifth largest strategy of North America-focused funds in market by target size and the largest by number, with 277 funds targeting an overall $31bn. Of these North America-focused venture capital funds in market, just over half of these funds focus primarily on early stage investments; 144 funds seeking $12bn in commitments.
The largest North America-focused funds currently in market are Riverstone Global Energy and Power Fund VI and Lexington Capital Partners VIII, both of which are seeking $8bn in capital. Riverstone Global Energy and Power Fund VI is a natural resources fund managed by Riverstone Holdings which makes buyout and growth capital investments and co-investments in the oil and gas, energy, and power industry sectors. Lexington Capital Partners VIII is a secondaries fund managed by Lexington Partners which seeks to purchase LP stakes primarily in established global buyout, venture capital and mezzanine funds through secondary transactions. Lexington Capital Partners VIII held a first close in February 2014 on $5.5bn.
Trident Fund VI is the largest North America-focused buyout fund by target size currently in market, seeking $4.5bn in commitments. This buyout fund is managed by Stone Point Capital and targets the financial services sector. Trident Fund VI held a first close in December 2013. The largest North America-focused real estate fund currently in market by target size is Carlyle Realty Partners VII, seeking $3.5bn in capital. This real estate fund targets properties across the US and held a first close in March 2014 at $1.1bn. Invention Investment Fund III is the largest North America-focused venture capital fund by target size currently in market, seeking $3bn in commitments. This fund is managed by Intellectual Ventures and is an early stage seed fund targeting intellectual property around new inventions and technologies.
While the $57bn raised by North America-focused funds in Q1 2014 was down on the post-crisis highs of Q4 2013, $46bn has already been raised in Q2 2014 as of May 14th. With close to 200 of the 1,004 North America-focused funds in market setting targets of over $500mn, North America-focused fundraising in Q2 2014 looks set to surpass fundraising in the previous quarter and continue the highs of late 2013.