In recent years, regulations into the private equity industry have become tighter. With the Dodd-Frank Act incorporated in 2010, funds are finding it harder to raise capital. According to Preqin’s Fund Manager Profiles online service, the private equity arms (excluding real estate and infrastructure) of the top 10 firms by capital raised over the last 10 years have managed to garner $518bn in aggregate capital commitments. This accounts for 17% of all the capital raised over the last decade in the entire private equity industry.
Preqin data shows that of the 10 largest firms by capital raised for solely private equity investments, excluding infrastructure and real estate, Carlyle Group has raised the most capital. The Washington D.C.-headquartered firm has gathered over $64bn in total capital commitments, helped by their largest ever fund, Carlyle Partners V.
Out of the largest 10 funds raised by these leading 10 firms only one fund has been raised since 2010. Apollo Investment Fund VIII, which focuses on opportunistic buyouts as well as distressed investments and corporate carve-outs, raised $18.4bn in 2013 and was the largest fund raised by Apollo Global Management since the previous fund in the series raised $10.1bn in 2006.
Blackstone Group, another top 10 firm by capital raised in the last 10 years, raised its last mega-large (over $4.5bn) private equity fund in 2010, Blackstone Capital Partners VI. Blackstone raised a significant $16.2bn for Blackstone Capital Partners VI, but it did not beat the previous fund in the series, which collected $21.7bn and remains the largest private equity fund ever raised.
Kohlberg Kravis Roberts has amassed the second largest amount of capital in the industry over the last 10 years, having raised $61bn in aggregate capital commitments since 2004. The firm also has the largest amount of dry powder, with an estimated $21bn left to invest. This compares to TPG, which has raised the third largest amount of capital over the last 10 years, but only has an estimated $6.5bn of liquid cash reserves ready to be invested.