According to Preqin’s Fund Manager Profiles database, there are currently 146 private equity firms considering a balanced investment strategy. Preqin describes a balanced strategy as investing across all stages of a company’s development, ranging from seed and venture capital to pre-IPO buyout financing. Of the 146 firms with a balanced strategy, just fewer than 50% have raised private equity funds using the balanced investment type.
The largest number of firms considering investing across all stages of a company’s development is headquartered in the US, with 43 firms collectively raising $51bn in the last ten years with an estimated $6.7bn in dry powder. The UK also holds a large hub of firms implementing a balanced strategy, with just under 14% of firms collecting an aggregate $7.3bn in capital in the last ten years and holding around $1.4bn in liquid capital available to invest. Currently there is an aggregate of $15.1bn in dry powder available within the universe of private equity firms taking on a balanced strategy.
Warbus Pincus is the largest private equity firm by aggregate capital raised in the last 10 years to consider investing across all stages in a company’s development, raising a total of $30bn across all of its balanced-focused funds over the last decade. Warbus Pincus, established in 1966, is currently raising its latest fund, Warburg Pincus Private Equity XI. The fund is targeting a total of $12bn in capital commitments, $3bn less than the capital raised in the previous fund which reached a final close in 2008 and outperformed its $12bn target.
Capital International is the second largest firm to take on a balanced strategy, having raised $5.9bn across its balanced fund types in the last ten years and holding an estimated $2.4bn in dry powder. The firm, with its private equity program dating back to 1992, is headquartered in Switzerland and is a subsidiary of Capital Group International. Capital International focuses on investment opportunities in expansion capital, replacement capital and buyouts in emerging markets. The latest of its balanced funds to close in 2012 was the Capital International Private Equity Fund VI, which garnered $3bn in capital commitments.
Gavea Investimentos, a Brazil-based firm, has raised $4.1bn in the last ten years, across a majority of growth funds and its one balanced fund. The firm’s balanced fund, Gávea Investment Fund IV, raised $1.8bn in 2011 and utilizes a variety of private equity investment strategies including buyout, growth, distressed private equity, PIPEs and venture capital. Currently the firm holds an estimated $1.1bn in dry powder available to invest in companies within Brazil.