- North American private equity fundraising has fallen to its weakest level since 2020, with 2024 totals around US$284B.
- Capital is increasingly concentrated in mega-funds and established managers, with the top 10 funds taking roughly 46% of U.S. fundraising in 2025.
- Dry powder remains very high but is starting to decline as slow exits and weak distributions constrain LP liquidity.
- The market is bifurcating, favoring scale while emerging and smaller managers face record-low fundraising amid subdued deal and exit activity.
Read More
Fundraising levels in North America across private equity have plunged to their lowest since the COVID pandemic years. According to PitchBook, firms raised roughly US$284 billion last year, marking a 26% drop from 2024, and the lowest annual total since 2020.
The volume of global fundraising followed a similar trajectory: total global PE funds raised in 2024 were about US$680 billion, down nearly 30% from ~US$966 billion in 2023 and far from the US$1.12+ trillion peak in 2021.
A major trend fueling this decline is the concentration of capital in the hands of mega-funds and veteran managers. In 2025, the top 10 PE funds captured ~46% of all US fundraising—up sharply from 34.5% in 2024—despite the overall market contraction. Funds larger than US$1 billion accounted for more than 75% of capital raised, and 87.6% came from managers with long histories. First-time and emerging manager fundraising plunged to historic lows.
Meanwhile, capital available to invest (“dry powder”) remains high but has started to diminish following record levels; unallocated PE/VC dry powder dropped from ~US$2.305 trillion (end of 2023) to ~US$2.184 trillion by Q1 2025. Exits and distributions have been sluggish, weakening LP liquidity and dampening enthusiasm.
These patterns have several strategic implications. Larger funds will continue to have negotiating power (on both valuations and deal terms), while smaller managers will struggle for LP attention. Deal sourcing may favor sectors with defensive or proven characteristics (e.g., healthcare, tech, secondaries). LPs are likely reprioritizing distributions over new contributions until exit environments improve. Open questions include how much rates and macro risk will tighten capital markets further, when exit volumes will sustainably increase, and whether LPs will re-diversify toward emerging managers or doubling down on incumbents as volatility persists.
Supporting Notes
- North American PE firms raised US$284 billion in 2024, down about 26% from 2024’s figures, lowest since 2020.
- Global PE fundraising in 2024 was approx. US$680 billion, a 30% drop from US$966 billion in 2023; peaked at ~US$1.119 trillion in 2021.
- In 2025, the top-10 PE funds captured ~46% of all U.S. capital raised through September/December—highest concentration since 2014—up from 34.5% in 2024.
- Capital raised by funds greater than US$1 billion comprised ~77–79% of total PE fundraising in H1 2025; first-time fundraises hit record lows, with only 41 new funds and US$8.4 billion raised for them.
- Dry powder for PE and VC globally was US$2.305 trillion at end-2023, falling to US$2.184 trillion by Q1 2025.
- Global PE fundraising declined for the fourth consecutive quarter as of Q2 2025; only ~US$442 billion raised globally across 608 funds per rolling 12-month data.
- North America raised US$203.8 billion in PE in H1 2025, barely above H1 2024’s US$203.1 billion—indicating near-flat to negative growth.
- Deal value in the Americas in 2025 (as of end Q3) was US$918.7 billion across 6,638 deals versus ~US$1 trillion in 2024 across 9,926 deals, showing fewer deals but similar capital intensity.