JUNIPER SQUARE REVEALS HIDDEN ENCLAVES OF PRIVATE WEALTH ACROSS THE U.S.

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Aug 01, 2023, 08:00 ET

Exclusive new data from Juniper Square offers insights into the surprising hotspots where savvy investors are using private equity to protect and grow wealth

SAN FRANCISCO, Aug. 1, 2023 /PRNewswire/ -- Juniper Square, the leading provider of partnership enablement for the private funds industry, today unveiled insights from over a decade of private investment data that showcases areas of wealth concentration across the United States. The analysis samples individuals -- non-institutional limited partners -- that have invested anywhere from $100,000 to $5 million in private equity and sheds light on the regions where these savvy investors are the most prevalent and active.

The largest private investment checks come from Philadelphia, Detroit and Ogden, Utah.

"The United States is home to more than five million high-net-worth individuals, but only a select few of those individuals -- less than 2% -- have the means and the access to invest in private equity," said Matt Lawson, chief marketing officer at Juniper Square. "As we took a look at the distribution of these investors throughout the country, we were surprised by the concentration in places one might not expect."

Intriguingly, the report reveals that many of these savvy investors reside in areas beyond the financial centers that one might predict. While major metros like Los Angeles, New York City, and San Francisco have the largest overall number of individuals invested in private equity, Juniper Square's data uncovers surprising pockets of these investors in smaller metropolitan areas.

On a per capita basis, the following U.S. cities have the highest concentration of individuals investing in private equity (ranked from highest to lowest):

Naples, Florida
Santa Cruz, California
San Francisco, California
Austin, Texas
Sebastian, Florida
Lubbock, Texas
Provo, Utah

Furthermore, when you look at top metropolitan areas by the average check size written:

Philadelphia, PA leads the way at $1,655,093
Detroit, MI is next at $1,001,528
Ogden, UT rounds out the top three at $928,559

"Like anyone, our team was truly surprised by the amount of investment that originated from some of these smaller regions and unexpected metropolitan areas. Analyzing the aggregated, anonymized data allowed us to uncover valuable insights about the diversity and strength of the LPs who are represented on our platform," shared Lawson.

As the leading provider of partnership enablement for private fund GP's, Juniper Square's exclusive data report revealed other compelling insights:

Across the U.S., savvy investors on the Juniper Square platform have written checks worth an average of $421,566.
Not surprisingly, states with the biggest populations also tend to have the greatest number of millionaire households and, ergo, the largest number of savvy investors. California takes the lead, followed by Texas, Florida, New York and Washington.
When adjusted for population, Utah and Colorado enter the top five states with the highest concentrations of savvy investors.
In 16 different metro areas, savvy investors have collectively invested more than a billion dollars in private equity, with the largest sources of investment capital coming from Los Angeles, New York City, and San Francisco, respectively.

"Finding smaller hubs of private wealth in places like Philadelphia, Detroit, or even across Utah shows us that private investment is coming in from all corners, and the savviest investors aren't always in the major metropolitan cities you'd expect," concluded Lawson. "The regional span of these LPs further demonstrates the need for GPs to leverage modern technology to connect and communicate with these investors, reaching them at every stage of the partnership, wherever they are."

For more information about Juniper Square, please visit www.junipersquare.com.

About Juniper Square

Juniper Square is the leader in partnership enablement for the private funds industry, offering a universal system for GPs and their LPs to seamlessly connect and communicate across every stage of their partnerships. Juniper Square empowers investment managers to accelerate fundraising, scale operations efficiently, and improve investor satisfaction. More than 1,800 GPs rely on Juniper Square to manage more than 32,000 investment entities that span over 500,000 LPs and $700 billion in investor equity.

SOURCE Juniper Square