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Blackstone tops buyers’ wishlists – Palico

Secondaries buyers' desires have changed over the last 18 months with safer mega-funds more popular than niche strategies, according to Palico.

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

 

$13bn
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

Source: Palico