Apollo Investment Fund IX becomes largest ever private equity buyout fund at $24.7bn
Latest Memo From Howard Marks: There They Go Again...Again
FASANARA ON THE "FAKE MARKET CYCLE"
The closure of Apollo Investment Fund IX, which has become the largest ever private equity fund at $24.7bn, brings total buyout fundraising in the first seven months of 2017 to $184bn, and overall private equity fundraising to $269bn. The current full-year record for buyout fundraising was set in 2007, when funds closed through the year raised $249bn. That year also saw record private equity fundraising at $413bn. However, two of the top 10 largest private equity funds ever have closed within the past two months, and 2017 is on course to surpass 2007’s total by some margin.
Key Private Equity Fundraising Facts:
- Apollo Investment Fund IX has closed on $24.7bn, making it the largest private equity fund ever closed. This surpasses the previous record of $20.4bn* set by Blackstone Capital Partners V in 2006.
- Two of the top 10 largest ever private equity funds have closed in the past two months.
- Buyout fundraising is at a record pace – $184bn has been raised in 2017 YTD, on course to surpass 2007’s full-year record of $249bn.
- Equally, private equity fundraising in 2017 YTD now stands at $269bn, and is on track to exceed the $413bn record set in 2007.
- Several potentially record-breaking private equity funds remain in market, including the $100bn Softbank Vision Fund, and the $30bn China State-Owned Capital Venture Investment Fund.
- Following the closure of Apollo Investment Fund IX, buyout fund dry powder now stands at $613bn.
Christopher Elvin, Head of Private Equity Products:
“Fundraising in 2017 so far has been dominated by the re-emergence of record-breaking funds. Prior to the closure this week of Apollo Investment Fund IX, the record for the largest ever private equity fund had stood for 11 years. However, Apollo may not hold the title for that long: there are two other private equity funds currently in market which have larger targets, and which may be looking to hold a final close in the coming months.
Overall, though, the fundraising picture demonstrates the enormous demand investors currently have for private equity investments. Apollo was able to raise almost $25bn in seven months, an average fundraising rate of around $115mn a day. Other fund managers have also reported that their latest funds have been heavily oversubscribed, and the record pace of fundraising in the industry does not show any signs of slowing in the second half of the year.”
Article by Preqin
