Apollo Seeks $12 Billion For Next Private Equity Fund

Nov 14 2012 | 12:57pm ET

Apollo Global Management is thinking small for its next buyout fund. For the New York-based private equity giant, that apparently means a paltry $12 billion.

Apollo said it has begun raising money for its eighth fund, which along with Warburg Pincus' 11th fund, is the largest private equity fund in the market by target size. And while the fund is larger than those currently marketed by the Carlyle Group and Kohlberg Kravis Roberts, it is smaller than the $14.7 billion fund Apollo launched in 2008.

"I'm pleased to announce that we are launching this week our next flagship private equity fund, Apollo Fund VIII, that will have a $12 billion target," Apollo co-founder Joshua Harris told the a Bank of America Merrill Lynch conference yesterday. "We expect it to be in the market shortly."

But why is Apollo shooting lower than it did four years ago, with a fund Harris called the "best in class"? Apollo Fund VII has earned a net 26% internal rate of return.

"There is less capital available for sure," he said. "From our point of view, we expect increased market share. Really, the number we picked came out of very detailed discussions with our investors."

$12 billion is a "realistic target," he added.

Apollo has more than $100 billion in assets under management.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.