The Blackstone Group raised $17 billion for its new global leveraged buyout (LBO) fund in seven months, according to report from Bloomberg based on information familiar with the situation.
Blackstone is one of the largest alternative asset managers worldwide with more than $300 billion in assets under management (AUM).
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More
Blackstone completed initial round of fundraising
The report indicated that the alternative asset manager completed that initial round of its fund raising its LBO fund, Blackstone Capital Partners VII.
Blackstone will continue to seek commitments from investors, according to the sources who requested anonymity because the details of the fundraising are still private. According to them, Blackstone will only reveal information once it stops accepting money from investors.
Last month, Blackstone President Tony James said their target was to raise $16 billion for the fund, and the maximum would be $17.5 billion.
Peter Rose, a spokesman for Blackstone, told Bloomberg that the executives of the alternative asset manager are scheduled to meet with the investors in the fund during an annual event in New York this week. When asked about Blackstone’s fundraising for the new buyout fund, he refused to comment.
Private equity industry continues to raise funds successfully
Matthew Morris, a senior research analyst at Preqin, noted that the private equity industry continues to raise money successfully based on the huge amount of capital flowing into the fund. He also noted that the industry is “demonstrating its ability to collect for larger vehicles.”
Data from Preqin showed that the private equity industry raised more than $1 trillion from investors globally over the past two years.
In 2007, Blackstone managed to raise $21.7 billion for Blackstone Capital Partners V within two years. The fund became the largest private equity fund at the time.
The Blackstone Capital Partners VII will become one of the largest private equity funds since the 2008 financial crisis. Last year, Apollo Global Management raised $18.4 billion for its buyout find, the largest private equity fund since the crisis.
Blackstone is a great organization said Cooperman
Leon Cooperman, the founder of Omega Advisors, described Blackstone as a great organization has delivered returns for its clients.
In an interview with Bloomberg on Thursday, Cooperman said he is cautious about making investments in buyouts when the stock markets are at record levels. He said, “You’re not getting any great bargains. Generally speaking, when you do the LBO, you’ve got to pay a premium to get it — a premium over a richly appraised market. I’d be cautious.”