Private Equity assets based in North America amounted to 7.7 trillion dollars in June 2023, 57% of the global AUMs, according to a report by Preqin.
Although the region’s market share has decreased in relative terms, from 63% a decade ago, private markets have grown overall now holding a slightly smaller share of a much larger market.
In fact, North America accounts for 62% of alternatives if we include hedge funds ($3.5tn of the world’s $4.5tn AUM), according to analysis by Charles McGrath, AVP, Research Insights, in Alternatives in North America 2024.
The scale and economic fortitude of the US gives it massive gravitational pull. EY forecasts 2.2% GDP growth in 2024 (although unfortunately Canada’s will be sluggish, predicts RBC). The highly productive and innovative nature of the US is exemplified by Nvidia’s place as the leader in an upward race by global equity markets.
As McGrath points out in his report, the scale of North America’s biggest pension programs means ‘their AUM can rival some countries’ gross domestic product’.
Top of the list?
Canada’s CPP Investment Board ($577.3bn AUM), CalPERS ($489.4bn), Caisse de dépôt et placement du Québec ($371.3bn), CalSTRS ($325.9bn), and the New York State Common Retirement Fund ($259.9bn).
There are also endowments and foundations, such as the University of Texas Investment Management Company ($68.7bn) and the Bill and Melinda Gates Foundation ($67.3bn).
The region’s fund managers have brand power. Six of them attracted more than $20bn each last year. Preqin table of fundraising by 20 North America-based managers over the past decade shows some impressive totals. It’s led by Blackstone ($333.6bn), Brookfield ($184.5bn), KKR ($184.2bn), Carlyle ($136.5bn), and Apollo ($135.0bn).
Por Funds Society, Madrid