Buyout vehicles have always been a prominent fund type, representing 17% of all private equity funds raised and 36% of the total capital raised for the asset class. Preqin’s Fund Manager Profilesonline service currently tracks 2,735 investors in private equity that have stated a preference for buyout vehicles as part of a wider strategy. Together, these fund managers have raised a total of $2.5tn in aggregate capital commitments over the last 10 years. The vast majority of these fund managers are based in North America and Europe, with only three percent of managers headquartered in Asia and other geographies.
Carlyle Group tops the table in terms of the amount of capital raised over the last 10 years, raising a total of $70.7bn in commitments for its highly diversified and global approach to private equity investment. In terms of dry powder, Apollo Global Management narrowly edges out Carlyle Group for the top spot with an estimated $21.3bn. Also investing globally, Apollo focuses its efforts on nine core industries including business services, healthcare and information technology.
The firm that has raised the largest amount of capital, focused solely on buyout investments, is CVC Capital Partners. The UK-based manager’s last fund to close was CVC European Equity Partners VI, which invests in mid-market companies based in Western Europe. Over the last decade the firm has raised $50.5bn in total capital commitments.
Outside of North America and Europe, Affinity Equity Partners is the largest buyout-focused manager in terms of capital raised over the last 10 years. The Hong Kong-based fund manager has raised a total of $7.3bn in capital commitments over the last decade, although this is still less than 10% of the total capital raised by Carlyle Group.
Hellman & Friedman VIII, the eighth buyout fund raised by California-based Hellman & Friedman, held a final close in November this year on $10.9bn, making it the largest buyout fund to close this year. The vehicle focuses on developed markets within the US and Europe.
The largest buyout vehicle currently in market is being raised by the Blackstone Group. Blackstone Capital Partners VII is targeting $15bn and expects to holds it first close in March 2015. The fund will invest across a diversified range of industries and geographies.
Though 2014 has seen increased competition within the buyout industry, and the private equity industry in general, buyout vehicles will continue to be a core preference for fund managers going forward.