Preqin, an independent provider of private markets data, recently released its Alternatives in North America 2025 report.
The report estimates show that North American private capital growth slowed as both fundraising and performance “continue to come off previous highs from 2021 and 2022.”
Regardless, the extensive research report from Preqin has noted that North America’s “$8.34tn total private capital assets under management (AUM) in June 2024 made up 57% of the global total.”
The region has strengthened its hold “on global assets, growing at an annual rate of 14.6% since the start of the decade – ahead of the 12.6% global annual increase in the same metric.”
The Preqin report pointed out that when accounting for the “$4tn in North America–based hedge fund assets, North America’s share rises to 63% of total alternative assets AUM.”
Nick Mairone, Vice President of Research Insights, at Preqin says:
“The rising influence of the world’s largest managers, many of which are US-based, has driven much of private capital’s AUM growth, and they continue to outraise their smaller peers by a significant margin. With fundraising expected to be lower in 2025 than in 2024, performance should continue to drive short-term AUM growth in 2025.”
Additional key report findings:
- North America-based private capital fundraising: In 2024, Preqin data shows that North America-based private capital funds raised $684.6bn – accounting for 67% of the amount raised globally, at $1.02tn.
- North American private wealth: Fundraising efforts are increasingly focused on private wealth investors, but challenges remain in identifying and addressing this segment across different regions. North America remains the region that has the most private wealth investors, which is more evident for wealth managers than family offices. 71% of wealth managers are in North America, followed by 14% in Europe, 8% in Asia, and 7% in the rest of the world.
- Private equity dealmaking: Deal activity fell in 2024 but remains historically high following its 2021 peak. The average private equity deal for North American assets reached $924mn in 2022, falling to $654mn in 2024.