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Chart of the Week: North American Capital Raised by Strategy

Capital raised from North American value added, debt, and opportunistic funds tumbled down last quarter.

23.4.2014 411x411
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During last week's chart of the week, PERE Research & Analytics reviewed Capital Raised by Strategy on a global scale in the Q1 2013-Q1 2014 timeframe. So, it deems appropriate for this week's chart to look at the capital raised by strategy on a regional level, particularly North America.

The strategy with the largest aggregate capital raised during this time period was value added, yet in the last two quarters, there was a huge decline. That decline was so sharp that the Q1 2014 figure is less than a third of the capital raised of its peak in Q3 2013. Much of this is attributed to a lack of large fund closings in the last quarter. At its peak, KTR Capital Partners closed on $1.2 billion for KTR Industrial Fund III while Crow Family Holdings raised $1.07 billion for Crow Holdings Realty Partners VI. The capital from those two funds alone sum greater than the entire Q1 2014 value added capital raised.

In comparison to the other quarters, Q1 2014 experienced the lowest capital raise for opportunistic, debt, and value added strategies. With last week’s chart of the week showing all three strategies having strong appetites at a global scale in this quarter, this graph indicates that North America’s capital raise is an outlier – meaning that investors are increasingly investing in opportunistic, value added, and debt funds targeting emerging markets and Europe.