Chart of the Week: North American Capital Raised by Strategy – H1 2014

Value-add funds overtake North American capital raised

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Coming in at second for total capital raised by region, PERE Research & Analytics decided to take a deeper look at North American capital raised in H1 2014. Data from PERE Research & Analytics has revealed that North American focused funds raised a total of $15.3 billion between 50 funds, accounting for approximately 30 percent of capital raised for the half. H1 2014 represents a dip of about 40 percent in capital raised from the previous half where $24.6 billion had been raised.

Value-added fundraising was the most popular strategy for North America, raising a total of $5 billion for the half, or about 30 percent. This is a typical trend for the region where a majority of North American capital is devoted to the strategy. However, at the global scale, value-added funds came in third for total capital raised in the half, with debt and opportunity funds coming in on top. Out of the 19 value-added funds that closed for the region this half, the largest fund was the DivcoWest Fund IV, managed by DivcoWest, which raised $976 million in April. While value-added funds raised the most capital, opportunistic fundraising saw the largest fund to close for the region. That fund was the GI Partners Fund IV, managed by GI Partners, which closed on $2 billion. Debt funds surprisingly came at fourth, despite the fact the strategy raised the most capital globally for the half at $18.5 billion. However, a majority of debt funds this half were raised in Europe as opposed to North America, where debt funds were the most popular strategy. Although, it was a debt fund that raised the second most capital in North America. That fund was the Broad Street Real Estate Credit Partners II, managed by Goldman Sachs Principal Investment Area, which raised $1.8 billion in May.

Notable North American funds in market include the opportunistic Carlyle Realty Partners VII, managed by The Carlyle Group, which is targeting $4 billion and the CIM Fund VIII, managed by CIM Group, with a target of $2 billion.