Chart of the Week: North American fundraising in the lead

$31.8 billion raised from 77 funds. 

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The total capital raised for private equity funds targeting North America overtook global funds in the first quarter of 2014, a sign that investors feel that the region is robust enough to forgo the benefits of global diversification. In Q1 2014, 45 percent of global fundraising was obtained from 77 North American focused funds. Five of such funds made the top ten, of which GTCR Fund XI was the largest securing $3.85 billion. 

 

In the last quarter, 12 North American based debut funds held final closes, most of which are venture capital. Drive Capital Fund I held a final close at $250 million, falling short of its $300 million target. Varsity Healthcare Partners Fund I, a healthcare growth fund, successfully closed at its target of $200 million.

 

Global funds only managed to collect 23 percent of the total capital raised in Q1 2014. This is a 63 percent decrease from the previous quarter, where $43.3 billion was secured from 33 multi-regional funds. The Apollo Investment Fund VIII accounted for much of that amount closing on $18.38 billion.

 

In the first quarter of 2014, European focused funds raised half the amount of capital compared to the final quarter of 2013. Of the total capital raised in Q1 2014, 17.2 percent was collected from 21 European focused funds. Hayfin Direct Lending Fund and TDR Capital III are among those, raising $2.75 billion each.