10 Updates
Private Equity Boom: Why Apollo's New $18B Buyout Fund Matters

Private Equity Boom: Why Apollo's New $18B Buyout Fund Matters

Jan 10 2014, 12:17pm CST | by

World's 10 Biggest Private Equity Funds There’s big news in the world of private equity. Apollo Global Management just raised $18.4 billion for its latest flagship buyout fund. The firm closed the...

Filed under: news

 
 
 

28 weeks ago

Private Equity Boom: Why Apollo's New $18B Buyout Fund Matters

Jan 10 2014, 12:17pm CST | by

World's 10 Biggest Private Equity Funds

There’s big news in the world of private equity. Apollo Global Management just raised $18.4 billion for its latest flagship buyout fund.

The firm closed the fund on December 31, meaning it’s no longer fundraising but is ready to start buying investments with the cash. Of the $18.4 billion, outside investors represent $17.5 billion with the remaining coming directly from Apollo and its top employees.

Why is all this important? Fundraising hasn’t been easy for private equity shops since the credit crisis, but the Apollo Investment Fund VIII is the largest buyout fund to close since the credit crunch in 2008.

In 2008, the private equity industry overall raised $230 billion in capital, according to Preqin. The figure dropped to $110 billion in 2009 and continued to decline through 2011 raising just $77 billion that year.

That may be why Apollo’s goal for Fund VIII was a mere $12 billion.

But thanks to a booming market in 2013, fundraising picked up big time in with $169 billion in aggregate capital raised, according to Preqin data.

Beyond that, it means Apollo and others are about to deploy the billions they’ve raised.

That’s significant because 2013 was primarily a big year for selling holdings rather than buying them.

Apollo CEO, Leon Black, noted at an industry conference in April 2013: “We think it’s a fabulous environment to be selling.” At the time, Apollo had sold about $13 billion in assets in the previous 15 months. “We’re selling everything that’s not nailed down, and if we’re not selling, we’re refinancing,” the billionaire founder said.

With $18.4 billion of fresh powder in its hands, Black and Apollo are ready to do some more buying too.

But even with all those billions raised, the Apollo Investment Fund VIII still isn’t the biggest buyout fund to ever close.

That title goes to the Blackstone Group’s Blackstone Capital Partners V which closed in 2006 after raising $21.7 billion. The firm was targeting just $13.5 billion.

Goldman Sachs Merchant Banking Division takes the #2 spot with $20.3 billion raised in 2007.

It’s important to note Goldman won’t be expected to raise a fund like that any time soon as regulations like the Volcker rule hamper its ability to act like a private equity firm.

At the same time, traditional PE shops like Apollo, Blackstone and KKR have been busy trying to expand outside of private equity by adding real estate, credit, hedge fund and asset management units.

Apollo, for instance, has $64.4 billion in assets in its credit business compared to $37.8 billion in its private equity unit./>/>

And these days Blackstone is more of a real estate shop than it is a PE firm. It’s the world’s largest private sector owner of real estate assets; its real estate assets, $56.7 billion, represent the biggest chunk of the firm’s total $210 billion.

KKR’s Public Markets segment, which houses its hedge fund and leveraged credit businesses, is growing rapidly managing some $27 billion in assets compared to $13 billion in 2008. KKR  is even experimenting with the retail investment crowd; it launched a couple of traditional mutual funds for individual investors about a year ago.

But don’t expect KKR and its big name competitors to give up on traditional private equity–especially now as investors are hungry to get back into the game.

“If you want to paint a picture of our firm, private equity will continue to be at the center of it,” co-founder George Roberts told Forbes last year.

Watch for big PE deals this year.

Source: Forbes Business

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told to ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by robber ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakyat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk S ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern st ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM20 million. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Scheme ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) today. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Simple blood test can now detect cancer
London, July 29 (IANS) In a first, British researchers have devised a simple blood test that can be used to diagnose whether people have cancer or not.
 
 
NASA's Mars rover breaks off-Earth roving record
Washington, July 29 (IANS) NASA's Opportunity Mars rover that landed on the Red Planet in 2004 now holds the off-Earth roving distance record after trekking for 40 km.
 
 
Smartphone catches fire under US girl's pillow
New York, July 29 (IANS) In a bizarre accident, a 13-year-old girl found her Samsung Galaxy S4 burnt and melted under her pillow.
 
 
Daily running can lower death risk
Washington, July 29 (IANS) A new US study has suggested that running everyday, even for a few minutes, can significantly reduce a person's risk of dying from cardiovascular diseases.
 
 
 

Latest from the Network

Man strangles lover's son to hide affair
Beijing, July 29 (IANS) A man in China strangulated his lover's son to death after the 12-year-old came to know of their extra marital affair. The man, pretending to be the woman's cousin, stayed at her house in...
Read more on Politics Balla
 
International observers to arrive in Russia
Moscow, July 29 (IANS) Two groups of representatives from the Organisation for Security and Cooperation in Europe (OSCE) are scheduled to arrive in Russia's Rostov region Tuesday. The observers would be attending a...
Read more on Politics Balla
 
Simple blood test can now detect cancer
London, July 29 (IANS) In a first, British researchers have devised a simple blood test that can be used to diagnose whether people have cancer or not. Early results have shown the new test gives a high degree of...
Read more on Apple Balla
 
Bradley Cooper has burger flipping lesson
Bradley Cooper is learning how to flip burgers. The 36-year-old actor had a lesson at Burger King in Leicester Square, London, on Sunday night (07.27.14) to help him master ''the art of the flip'' in preparation for his...
Read more on Celebrity Balla
 
Beyoncé secretly house-hunting alone
Beyoncé is reportedly house-hunting without Jay Z. The 32-year-old singer has fuelled rumors she and her husband are on the rocks after she was spotted secretly viewing a $21.5 million Chelsea penthouse in Manhattan...
Read more on Celebrity Balla
 
NASA's Mars rover breaks off-Earth roving record
Washington, July 29 (IANS) NASA's Opportunity Mars rover that landed on the Red Planet in 2004 now holds the off-Earth roving distance record after trekking for 40 km. "Opportunity has driven farther than any other...
Read more on Apple Balla
 
Smartphone catches fire under US girl's pillow
New York, July 29 (IANS) In a bizarre accident, a 13-year-old girl found her Samsung Galaxy S4 burnt and melted under her pillow. The north Texas girl kept the phone on charge and wedged her charging phone under her...
Read more on Apple Balla
 
Zoe Saldana will use family rules
Zoe Saldana will raise her children in a way similar to her own upbringing. The 36-year-old actress is reportedly expecting twins with her husband Marco Perego, whom she married in a secret ceremony in London last year...
Read more on Celebrity Balla
 
Ed Sheeran won't make US move
Ed Sheeran won't be moving to America permanently. Despite selling hundreds of thousands of records in the US, the 'Drunk' hitmaker could never leave behind his friends and family in the UK. Asked if he will make the...
Read more on Celebrity Balla
 
Paul Rudd 'loves' revamped Ant-Man script
Paul Rudd is eagerly looking forward to working on 'Ant-Man'. The 45-year-old actor is busy getting himself in shape for the lead role in the forthcoming blockbuster and revealed that he ''loves'' the direction the...
Read more on Movie Balla