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Top 10 Cities in Private Equity – September 2014

by Matthew Morris

  • 30 Sep 2014
  • PE

According to Preqin’s Fund Manager Profiles online service, there are currently 8,129 active private equity firms worldwide, accumulating a grand total of $3.5tn in the last 10 years. These private equity houses tend to be concentrated in a small number of countries, with North America, Europe and select Asian countries topping the pile. This blog will take a closer look at the cities with the most private equity firms, as well as where the most capital has been collected over the past decade. The top 10 cities globally account for 29% of all private equity firms, and are responsible for a staggering 57% of the total capital raised, highlighting the dominance of these hubs. 

Eight cities have managed to collect over $100bn in private equity capital in the last 10 years, with New York leading the way. The Big Apple is home to over 8% of all global private equity firms and firms based here have managed to raise $823bn from investors over the last 10 years, accounting for 24% of global funds raised. As expected, North American cities feature heavily in the lists in regard to both number of firms and aggregate capital collected. Five North American cities are in the top 10 based on number of firms; in terms of capital raised in the last 10 years, seven of the top 10 cities are based in North America, including Washington, which holds the largest average amount raised per firm in the top 10, at $1.7bn each. 

San Francisco and Menlo Park are the California-based entries in the top 10 based on number of firms, and out of the combined 345 firms in these cities, it is no surprise that 68% of these have a main strategy of venture capital. California in total is home to 906 private equity players, almost double the amount of firms based in the UK (561). 

London continues to be a dominating private equity hub in both the UK and Europe, having attracted $408bn in investor capital over the last decade. This means that London has both the second highest number of firms and capital collected out of any city globally. Paris was the only other European entry in the top 10 for both factors. 

China has two cities in the top 10 in terms of number of firms, with Beijing (125) and Shanghai (110) topping the Asian pile. No African or Latin American cities placed in the top 10. The highest Latin American entry is Sao Paulo with 55 firms, which has raised $10.3bn in the last 10 years; Johannesburg was Africa’s highest placing city, with 25 private equity houses accumulating a total of $2.3bn. 

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