The news of Apollo’s recent closing of a giant USD 18 billion PE fund generated a lot of media coverage this past month. The announcement prompted PE industry information provider, Preqin, to take a closer look at the private equity buyout fundraising market. It is clear from the data that fewer funds raised money last year but this group as a whole raised much larger funds.
The trend suggests that larger players are benefitting the most from the recovery in PE market, at least for now. These kinds of statistics are typically an indication of a flight to quality, or at least a flight to brand name fund managers. The stats also show that 2013 was the best year since the financial crisis hit in 2008. Forbes reporters speculate that the new money is bound likely to “heat up” the buyout market with fund managers awash in new cash. (Image source: Preqin)