Research

Market at a glance – Huge Apollo fund fuels red-hot fundraising

July 24 2017

U.S.-based buyout and mezzanine fundraising hit a massive swell as Q2 wrapped up. Over the past two weeks, the yearly total grew by $26.5 billion. Thus far in 2017, $137.2 billion has been raised, leading the year-earlier period by $37.6 billion, or 38 percent.

Apollo Global Management is wrapping up fundraising on what will be the largest PE fund ever raised. Apollo Investment Fund IX reached its $23.5 billion goal, with a final close expected soon. Blackstone Group held the previous record: Blackstone Capital Partners V collected $21.7 billion in 2007.

In just over three years since its last fund, Palladium Equity Partners wrapped up its fifth flagship pool, focused on the middle market, at $1.5 billion.

Coming in above its aim, Wind Point Partners finalized its eighth vehicle at $985 million, ahead of the original $750 million cap. The firm invests in consumer products, industrials and business services.

Dealmaking stayed strong since Buyouts last went to press, with activity growing $4.6 billion. The yearly aggregate now sits at $95.1 billion, ahead of 2016’s total by $7.8 billion, or 9 percent.

Of deals with disclosed value, a pair rose above the billion-dollar mark.

Along with fundraising, Apollo also led all deals in value. For $1.5 billion, Apollo gained a majority stake in Philips Lumileds Lighting, a maker of high-power LEDs and solid-state lighting solutions.

Thoma Bravo was next up with its deal for the enterprise-software business of Lexmark International. The firm acquired the prepackaged software publishing operation for nearly $1.4 billion.