Blackstone eyeing $16B in new global PE fund

Blackstone, the world's largest alternative investments fund manager which invests in India out of its global fund, is looking to raise around $16 billion for its new flagship buyout fund, Reuters reported citing sources.

The new fund Blackstone Capital Partners VII LP would be the second largest private equity fund for the fund house behind its fifth fund BCP V, which scooped $21.7 billion and whose investment period ended in January 2011.

However, it would be larger than $15.18 billion that it raised under Blackstone Capital Partners VI two years ago and whose investment period expires in January 2017. Blackstone spokesperson declined to comment on the proposed fund.

Blackstone had deployed around $9.65 billion from its current fund including realised investments and had dry powder of $8.62 billion as of June 30.

Meanwhile, its flagship fund BCP V crossed the preferred return threshold and generated $509 million in performance fees during the second quarter ended June 30, with $5.8 billion of realisations year to date.

This had buoyed its economic net income (ENI) 89 per cent to hit $1.3 billion mark in Q2 over the year-ago period, as Blackstone’s funds created $9.3 billion of value in the second quarter alone. Total revenue was up 164 per cent to $939 million for the quarter.

The firm's total Assets Under Management (AUM) reached a record $279 billion, up 21 per cent year over year despite returning $50 billion of capital to investors over the last 12 months.

Blackstone’s committed undrawn capital or dry powder stood at $45.3 billion, up 18 per cent from $38.5 billion a year ago.

Overall AUM under PE was $68.3 billion at the end of Q2.

Early this year Apollo Global had closed its new fund at $18.4 billion.

Most recently another PE firm Carlyle Group closed its fourth Asia fund Carlyle Asia Partners IV (CAP IV) at $3.9 billion, the second-largest private equity fund ever raised for Asia investments.

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