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Venture Capital Dry Powder Levels – September 2012

by Nicholas Jelfs

  • 19 Sep 2012
  • PE

Preqin’s Fund Manager Profiles product currently has information on almost 3,500 private equity firms that offer venture capital investments as part of their investment strategy, either exclusively or as part of a broader investment approach. Over the past 10 years, these firms have raised an aggregate $922.1bn in capital commitments, $354.2bn of which has been raised exclusively for targeting venture capital opportunities across the globe. As of September 2012, however, almost a third of this amount ($116.5bn) remains to be called up from investors, as capital held in reserve for the venture capital industry. This figure is marginally lower than the levels at the end of 2011, when the estimated figure for venture capital dry powder stood at $118.6bn.

Breaking the current dry powder amount down by region, North America-focused venture capital firms have approximately $66.9bn of committed capital available to invest, compared to $84.4bn at the end of 2007, but nonetheless the highest amount in recent years. The level of dry powder available to Europe-focused fund managers has fallen by a similar proportion over the last five years, with $17.2bn currently available compared to $21.2bn at the end of 2007. As for Asia and Rest of World-focused funds, the level of estimated dry powder has increased significantly from $23.0bn towards the end of 2007 to $32.4bn as of September 2012.

According to Preqin’s League Tables, New Enterprise Associates is the venture capital firm that currently has the largest amount of estimated dry powder, with just over $3.3bn. The recent closing of New Enterprise Associates XIV on $2.6bn puts the firm above Tiger Global Management, which has an estimated $3.0bn, and Kleiner Perkins Caufield & Byers which holds just over $2.6bn.

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