Apollo Sets Record With $24.6B Capital Raise For New PE Fund

Jul 28 2017 | 6:31pm ET

Apollo Global Management has raised an extraordinary $24.6 billion in capital commitments for its ninth buyout fund, according to regulatory filings with the U.S. SEC.

The new fund, named Apollo Investment Fund IX, L.P., will reportedly invest in North American and Western European buyout opportunities. In the market only seven months, it significantly crested its original $23.5 billion hard cap and expects to amass $24.7 billion in total, the filing said. 

The new fund ranks as the largest private equity vehicle ever raised, besting Blackstone’s $21.7 billion pool that closed in 2007. Apollo’s previous fund, Fund VIII, closed in December 2013 with $18.4 billion in capital commitments and has generated a 16% net annual return through March 2017, according to Bloomberg.

Fund IX comes in a year likely to smash the previous $249 billion fundraising record set in 2007. Investors have flocked to private capital vehicles in recent years as record-low interest rates, high asset correlations and disappearing market volatility have trimmed their ability to earn alpha in listed instruments. However, this rising pile of cash – two other PE funds currently in the market have even more ambitious capital targets than Apollo’s fund – has resulted in inflated private company valuations and high levels of dry powder on the sidelines waiting to be deployed.

New York-based Apollo is one of the largest money managers in the world. Founded by Leon Black, Joshua Harris and Marc Rowan, Apollo managed more than $197 billion in private equity, credit and real estate strategies as of March 31.

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