The frequency of mega-buyouts has slowed down over the last few years and lags by far the years 2005 to early 2007, reports Private Equity Beat. It is no secret that credit markets haven’t been particularly receptive to heavily leveraged deals, but what is less obvious but also contributing to the demise of mega-buyouts is that established buyout players are raising smaller flagship funds this time around, according to the report.
It said that Apollo Global Management, Kohlberg Kravis Roberts & Co., Carlyle Group and Warburg Pincus are raising their latest main buyout funds with smaller targets than the preceding funds. The article included a table showing this year’s largest deals, only one of which was greater than USD 5 billion. (Image source: Private Equity Beat)