North American VC and private equity firms looking overseas for capital

• One in four are actively targeting new geographies, and 69% expect more overseas interest

• Half say capital raising is more difficult this year compared with last, and almost all say the US economy is driving interest in overseas investment

North American venture capital and private equity firms are increasingly looking to raise capital overseas in the face of challenging economic conditions, new research* for Ocorian, a leading US and global asset service provider, shows.

Around half (50%) say raising capital has become more difficult this year compared with last year with 75% saying increased due diligence requirements and 69% citing regulatory uncertainty as the biggest barriers to raising capital.

However, 61% point to investor risk aversion as a major barrier to raising capital in the current market, the study with senior US and Canadian executives at mid-market private equity and venture capital firms responsible for $335.25 billion assets under management found.

Almost all (93%) questioned in the research by Ocorian, which provides fund solutions in the US and globally, say they expect to attract capital from new geographies over the next two to five years including 24% who are actively targeting regions that have not historically invested in their funds.

Around 69% say they expect interest in their funds from new geographies will grow organically and just 7% do not expect commitments from overseas in the next two to five years. Nearly six out of 10 (57%) expect first-time interest from the Middle East while 52% of US funds expect interest from Canada for the first time. Around a third (33%) believe fundraising will come from Luxembourg and 36% from Australia and New Zealand. About 29% anticipate interest from Europe excluding Luxembourg and Ireland.

The interest in new geographies goes hand in hand with targeting new types of investors – all expect increased investment from pension funds, insurers, and wealth managers while almost all expect increased investment from family offices (99%), sovereign wealth funds (99%) and HNW and UHNW individuals (96%) over the next two years. Around two-thirds (67%) expect a 10% or more increase in the level of capital raised from pension funds while 65% expect the same from family offices.

Almost all (98%) say current US economic conditions are a major influence on their decision to target non-US investors although that includes 56% who are doing so reluctantly and 23% who are only targeting foreign investors as a short-term measure.

Less than one in five (19%) say they are actively seeking more capital from non-US investors as they see strong strategic value.  

Almost all (95%) questioned expect the percentage of capital raised from the US to increase over the next five years and 82% say the same about Canada. However, 44% expect the percentage of capital raised in the Middle East to increase dramatically over the same period while 28% say the same about the UK and Asia with 27% forecasting dramatic increases from Europe excluding the UK.

Lynne Westbrook, Head of Funds – Dallas at Ocorian, said: “The potential for 401(k) access to private equity under the Trump administration signals a shift that could transform the investment landscape — opening the door to a broader base of institutional and, ultimately, retail capital. It’s part of a wider trend we’re seeing toward the democratisation and retailisation of private equity, themes explored in our Global Asset Monitor and in recent commentary from colleagues like Robin Harris.

“This push to widen participation in the asset class comes at a time when domestic capital raising has become more difficult. Regulatory scrutiny, valuation uncertainty, and institutional caution are all prompting North American fund managers to expand their investor base internationally — not just as a short-term fix, but as a strategic pivot. The Middle East stands out in that context, with institutional appetite growing and a clear regulatory message: substance matters. Firms need boots on the ground presence in the UAE to support their managers in meeting those expectations and unlocking new pools of capital with confidence.”

* In May 2025 Ocorian commissioned independent research company PureProfile to interview 100 senior venture capital and mid-market private equity professionals in the US and Canada working for firms with $335.25 billion assets under management