Ocorian: Private equity fund are increasingly looking beyond the US

Ocorian: Private equity fund are increasingly looking beyond the US

Private Equity Verenigde Staten

Private equity fund managers are increasingly looking outside the US for fundraising despite believing the country offers the best opportunities to raise money, new research from Ocorian.

The study in the U.S. and across Europe with private equity fund managers managing $3.511 trillion found more than half (55%) say the U.S. offers the greatest growth opportunities for fundraising over the next three years. Among U.S. based fund managers that rises to 78%.

By comparison, just a third (33%) selected Europe excluding the UK as the region offering the best growth opportunities over the period. Around 12% of U.S. based managers selected Europe excluding the UK.

However, the research found current U.S. economic and geopolitical conditions are having a major influence on firms switching to raise capital outside the country and such view is shared by U.S. based and European fund managers.

Nearly nine out of 10 (87%) say they are reluctantly looking abroad due to challenges in the U.S. while 10% are actively looking abroad and see strong strategic value. Around 4% say the switch overseas is only a short-term move in response to current conditions. However, none of the fund managers questioned said their capital raising remains primarily U.S. focused.

Ocorian’s research found nearly two out of five (37%) firms say that 50% or more of their capital raising will come from the U.S. over the next two years. That compares to just 11% saying the same about Europe excluding the UK, and 5% naming the UK.

Just 2% questioned say none of their capital raising will be in the U.S. over the next two years while 35% say that about Asia and 19% about the Middle East.