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