California led the nation in private equity investment for the first time in three years in 2014, edging out Texas, the leader in 2013.

Texas was home to a $25 billion Dell acquisition in 2013, which helped the Lone Star state lead the nation in private equity investment that year.

“California had a number of large deals last year and Texas, while still very impressive, did not have another deal the size of Dell,” said James Maloney, spokesman with Private Equity Growth Capital Council (PEGCC).

Private equity investment totaled $56.4 billion in 385 California companies and $51.9 billion in 334 Texas companies in 2014, according to the PEGCC’s 5th annual investment report.

There was a shift in the size of private equity deals in 2014, with the trend moving from large-sized to middle-market deals, according to the report. In 2013, the median deal was $187 million, compared to $150 million in 2014. “There was an increase in the number of deals but they were smaller in size,” said Maloney.

Overall, private equity firms invested more than $486 billion in U.S.-based companies last year, increasing investment by $43 billion over the previous year. At 29%, the business services sector attracted the most private equity investment.

“The consumer sector scored secondplace and [information technology] dropped from first to third,” Maloney said.

The PEGCC study found that New York and Florida moved up in the rankings from fourth to third and fifth to fourth place last year, respectively. Other states that moved up in the rankings were Ohio, which jumped from 12th to seventh, and Michigan, which went from 19th in 2013 to 11th last year.

“With investments in more than 3,100 U.S.-based businesses last year, private equity continues to help companies strengthen their operations, create jobs and grow our economy,” said Steve Judge, president and CEO with the PEGCC.

Texas, New York, Florida, and Illinois followed California this year; in 2013, the top five were Texas, California, Pennsylvania, New York and Florida.