Blackstone and its peers are benefiting from a robust fundraising market as investors continue to express confidence in the return potential for the asset class.
Sunday 12, May 2019
(Bloomberg) --Blackstone Group has set a $25 billion cap on its latest flagship buyout fund as investors clamour to get into the offering.
New York-based Blackstone has attracted more interest from investors for its eighth private equity fund than it’s willing to handle and at $25 billion, Blackstone would exceed Apollo Global Management’s $24.7 billion fund, an industry record.
Private equity firms raised $432 billion last year, short of 2017’s record haul.
While investors are concerned about high deal prices, many are upping their allocations to the asset class, according to a survey by Preqin released in April. The survey found that 68 per cent of investors were as confident as last year that private equity would deliver in 2019.
Blackstone has gathered money at a rapid clip, taking in $126 billion in the past year.
Additionally, the world’s largest alternatives manager with $512 billion in assets under management, held a first close of more than $22 billion on its flagship fund in March.
Blackstone’s global private equity business, led by Joseph Baratta since 2012, also manages funds focused on energy and investments in Asia.