Blackstone‘s 2011-vintage global buyout fund is the most highly desired vehicle on the secondaries market as buyers seek safer mega-funds that hold stakes in large companies, according to online private equity fund marketplace Palico.
Blackstone Capital Partners VI, which closed above target on $16 billion, topped the list of top 10 funds that included Carlyle, PAI Partners and EQT-managed vehicles, according to data from Palico. The list was based on 2,234 ‘wishes’ from Palico members over the last 18 months.
Blackstone Capital Partners VI had a 1.2x return multiple and a 10.6 percent net internal rate of return as of 31 March, according to performance data from the California Public Employees’ Retirement System. Its investments include a $2 billion deal where it acquired home technology services provider Vivint.
Palico noted secondaries buyers are increasingly wanting to buy mainstream generalist funds – large buyout or mid-market vehicles – compared with spring last year when its top 10 list comprised many specialist and emerging market-focused funds.
“Given public markets are considered fully valued by many, and US interest rates look on course for a series of hikes, investors in US private equity – despite their long-term focus – are relatively risk averse today,” Palico noted.
Europe-focused funds, which accounted for half of Palico’s top 10 list, are popular with buyers seeking bargains in a region characterised by slow growth and a historically cheap currency, it noted.
|Most Popular Funds||Focus||Vintage||Size|
|1. Blackstone Capital Partners VI||Global LBO||2011||$16bn|
|2. Carlyle Partners VI||North America LBO||2013
|3. Carlyle Partners V||North America LBO||2007||$14bn|
|4. PAI Europe V||Europe mid-market||2008||€3bn|
|5. EQT V||Europe mid-market||2006||€4bn|
|6. DBAG Fund VI||Europe mid-market||2012||€700m|
|7. FSN Capital III||Nordic mid-market||2008||€375m|
|8. Gilde Buyout Fund IV||Europe mid-market||2010||€800m|
|9. Affinity Asia Pacific III||Asia-Pacific mid-market||2007||$3bn|
|10. Access Venture Partners II||North America venture||2006||$30m|