The June issue of Preqin’s Private Equity Spotlight newsletter featured an article on the top 10 private equity fund managers by strategy. This lead article looked at those fund managers that have raised the most capital over the past decade, as well as those that have the largest estimated amount of dry powder available for future investments. This blog looks in closer detail at the top 10 fund managers pursuing a venture capital strategy.
As shown in the table above, seven of the top 10 largest fund managers by total venture capital funds raised over the last decade are headquartered in the US, including the top five in the list. Five of these seven US-based managers have offices on the West Coast, unsurprisingly taking up residence in the innovation and technology hotspot that is Silicon Valley. Likewise, of the 10 largest fund managers as ranked by estimated dry powder, seven are US-based, with the remainder located in either Hong Kong or China.
Accounting for 41% of all venture capital fundraising over the past decade, the top 10 firms in the table above have secured a total of $67bn during this period. The 10 venture capital fund managers with the most capital available for future investments also have an estimated $28bn in dry powder, which accounts for 50% of the total uncalled capital yet to be invested in the venture capital space.
According to Preqin’s Fund Manager Profiles, the largest venture capital fund manager by total funds raised in the last decade is New Enterprise Associates (NEA), which has accumulated an aggregate $11bn. The firm is headquartered in California and invests primarily in the technology, healthcare and energy technology sectors at various venture capital stages. NEA also has the second largest amount of dry powder available, with an estimated $4.2bn, having successfully closed one of largest venture capital funds of all time this year. The firm closed its fifteenth flagship vehicle on $2.8bn, with an additional $350mn available through NEA 15 Opportunity Fund.
So far in 2015, 144 venture capital funds have held a final close, securing an aggregate $23bn in capital. As Preqin’s data illustrated last year, the fund strategy had witnessed an improvement in returns, with venture capital funds matching the private equity benchmark over three years and acting as the best performing strategy over one year. As such, there are currently 641 venture capital funds in market looking to take advantage of these promising returns.