360° Coverage : Private Equity Boom: Why Apollo's New $18B Buyout Fund...

2 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

 
 
 

33 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
2

3 days ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of 20,000 by ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

4 days ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

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

IS video shows beheading of second US journalist
Washington, Sep 2 (IANS) Days after the beheading of American photojournalist James Foley, Sunni militant group Islamic State (IS) has posted a video showing the beheading of another kidnapped American journalist Steven Sotloff, CNN reported.
 
 
IS beheads second US journalist
Washington, Sep 2 (IANS) The Islamic State militant organisation has posted a video titled "A second message to America", showing the beheading of American journalist Steven Sotloff, CNN reported.
 
 
India offers red carpet, not red tape, Modi hard sells India (Roundup)
Tokyo, Sep 2 (IANS) Prime Minister Narendra Modi Tuesday hard sold India to Japanese investors saying that his country offers only a red carpet and not red tape while dubbing his five-day trip to Japan that ends Wednesday as "very successful".
 
 
Fear grips onlookers as Ebola victim walks through market
Monrovia, Sep 2 (IANS) A video footage has emerged from Liberia showing a person tagged positive for Ebola virus disease (EVD) walking through a busy market, sending hundreds of horrified onlookers fleeing in fear, a media report said Tuesday.
 
 
 

Latest from the Network

11 killed in Pakistan building collapse
Islamabad, Sep 2 (IANS) At least 11 people, including women and children, were killed Tuesday when a roof of an old building collapsed in Pakistan, a media report said. As many as 18 people were wounded when a two-...
Read more on Politics Balla
 
Imran refuses to budge as parliament supports Pakistan PM (Roundup)
Islamabad, Sep 2 (IANS) Pakistan Tehreek-e-Insaf (PTI) chairman Imran Khan refused to budge on his demand for Prime Minister Nawaz Sharif's resignation Tuesday as a joint session of parliament came out overwhelmingly...
Read more on Politics Balla
 
IS video shows beheading of second US journalist
Washington, Sep 2 (IANS) Days after the beheading of American photojournalist James Foley, Sunni militant group Islamic State (IS) has posted a video showing the beheading of another kidnapped American journalist...
Read more on Ad Balla
 
Modi cites people's efforts for India-Japan strategic ties
Tokyo, Sep 2 (IANS) Prime Minister Narendra Modi Tuesday said India and Japan were now working as "special strategic and global" partners and this was the result of efforts of not just the two governments but because...
Read more on Politics Balla
 
IS beheads second US journalist
Washington, Sep 2 (IANS) The Islamic State militant organisation has posted a video titled "A second message to America", showing the beheading of American journalist Steven Sotloff, CNN reported. The video also...
Read more on Ad Balla
 
Rahane shines as India seal series in Edgbaston
Birmingham, Sep 2 (IANS) Ajinkya Rahane's maiden century and his century-run stand with Shikhar Dhawan powered India to a comprehensive nine-wicket win over England in the fourth ODI here Tuesday and also sealed the...
Read more on Sport Balla
 
India vs England: Scoreboard, fourth ODI
Birmingham, Sep 2 (IANS) The following is the final scoreboard of the fourth ODI between India and England at Edgbaston here Tuesday. England Alastair Cook c Raina b Kumar 9 Alex Hales b Kumar 6 Gary Ballance c Rahane...
Read more on Sport Balla
 
Britain asks citizens to review travel plans to Pakistan
Islamabad, Sep 2 (IANS) The British Foreign and Commonwealth Office (FCO) has advised its citizens to review their planned trips to Pakistan in view of the volatile security situation in the country. "There is a high...
Read more on Politics Balla
 
Jaime King: Motherhood is all that matters
Jaime King says her son is the most important thing in her life now. The 'Sin City: A Dame to Kill For' star welcomed her first child James - her son with husband Kyle Newman - into the world last October and since she...
Read more on Celebrity Balla
 
Chris Brown pleads guilty to assault
Chris Brown has pleaded guilty to assault. The 'Beautiful People' hitmaker was sentenced to time already served by a judge after accepting a plea deal at a Washington DC superior court today (02.09.14), where he was...
Read more on Celebrity Balla