Blackstone raises $13bn for new mega fund
Published Friday, 23 July 2010 in Mega Market.
Blackstone's new fund raises $13.5bn The fund is significantly short of the $20bn Blackstone had hoped to raise
Blackstone has made a final close of $13.5bn (€10.4bn) on its sixth flagship fund, Blackstone Capital Partners VI.
The fund is significantly short of the $20bn Blackstone had hoped to raise when it launched the vehicle at the start of 2009, and is also smaller than the $22bn fund the firm raised at the peak of the buyout boom in August 2007.
Blackstone found the fundraising market difficult, and revised its target to $15bn when it became clear that limited partners had been hurt during the recession.
Investors have become especially wary of mega funds, which were more than 30 per cent down in June 2009 according to Preqin data.
The new fund will invest globally, but is likely to focus on the faster-growing economies of Asia and other emerging markets initially.
The fund close was announced as Blackstone posted results for the second quarter of 2010. The firm delivered private equity revenues of $83.9m in Q2, down on the $198.6m delivered in Q2 2009.
Like some of its rivals, Blackstone has found the exit market difficult. The flotations of Merlin and Travelport had to be put on ice, and its IPO of Graham Packaging was priced below expectations.
Picture: Source
