Global private equity giants are struggling for their fundraising
Blackstone attracted little above 21 billion US Dollars for its flagship buyout fund, Bloomberg reported. The NYSE listed giant could not achieve the 30 bilion target set for 1H23 for the fundraising that launched in 2022. The firm delayed the fundraising closure and lowered the amount to receive from investors to 25 billion, in line with the previous vehicle, and later to 20 billion.
Since 2022, the macroeconomic landscape changed as the Federal Reserve and other Central Banks started again to tame inflation making the private capital firms fundraising more difficult.
Bain & Company Global Private Equity Report recently stressed out that unlisted assets have been attracting less resources for three consecutive years. In 2024, private capital firms raised 1.1 trillion (-24% from 2023 and -40% from 2021 peak of 1.8 trillion) spread over 3000 new closed funds (-28%) (see here a previous post by BeBeez and the report). However, infrastructure funds raised 89 billion while direct lenders received 123 billion (+3%). Investors allocated 38% of their resources in buyout funds. However, such vehicles only raised 401 billion, down 23% from 2023 and minus 11% compared to the average of the last 5 years despite the business yields are still satisfactory.
In 2024, Steve Schwarzman, the ceo and founder of giant NYSE-listed alternative asset manager Blackstone, received more than one billion in salary (0.35 million), carried interest (83.7 milion) and dividends (916 million), Bloomberg and a previous post by BeBeez reported.
Schwarzman owns little below than 20% of Blackstone, the world’s largest alternative manager that has a market capitalization in the region of 183 billion. Bloomberg Billionaires Index says that the 78 years old ceo’s personal wealth amounts to 51.3 billion.
Blackstone paid its 55 years old president & chief operating officer Jon Gray a total of 247 million (169.7 million dividends and 44 million in carried interest).
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