North America: Centre of the fundraising world again

North America: Centre of the fundraising world again

Vehicles investing around the world raised more money, but North America is ascendant.

Private debt is homing back to North America, potentially bringing an even greater influx of capital to the birthplace of the world’s largest private debt market.

North America-centric vehicles were seeking $84.42 billion at the end of the first quarter, while funds with a global mandate, defined as investing in more than one region, were looking for $69.01 billion, according to PDI data.

The opposite was true for total money raised: global funds raised more than North American funds. Those searching for deals across different geographies closed on $17.35 billion over the first three months of the year, while North America-focused vehicles rounded up $12.71 billion.

The last few quarters have seen a larger amount of capital raised to invest globally, with the third and fourth quarters of last year finishing with a greater portion of the total raised belonging to pools of capital that would invest around the world. During that same time period, North America-centered funds were seeking the most capital.

The trend is converse than the Private Debt Investor sister publication from Private Equity International showed. PEI numbers showed North American-focused funds locked down $28.61 billion, or 34.78 percent of the $82.27 billion raised. Global private equity funds raised $23.69 billion, 28.79 percent of the total pulled in by private equity managers.

Because private credit money often chases private equity deals, private equity fundraising could be indicative of private debt fundraising.

Now, of course, the fundraising figures always come with a footnote: the shift to North America will only be complete if managers meet their funds’ targets. Given that we just came off a record-breaking year and our first quarter for 2018 topped last year’s, it’s not an outlandish conclusion that North America could once again top the charts.

Contact:Andrew Hedlund
andrew.h@peimedia.com