Blackstone has so far raised $9bn for its sixth global buy-out fund and hopes to tie up fundraising at the end of June, according to a letter disclosed to investors and obtained by a Reuters source.
The New York Post reported in October last year that Blackstone was having trouble in raising $20bn for Blackstone Capital Partners VI.
The private equity giant has since said that it is targeting a smaller figure of around $15bn. Blackstone would have to raise a further $6bn in six months in order to reach its target, which it will struggle to do amid a climate of investor apprehension.
BCP VI’s predecessor raised a massive $21.7bn, closing in August 2007.
Recent data from analyst Preqin shows that mega funds – private equity vehicles over $4.5bn, by its definition – have been hit hard by the downturn. According to its information, such funds have averaged a 31.4 per cent loss over the year ending June 2009.
What’s more, 37 per cent of investors polled by Preqin indicated that they would be avoiding mega funds after previously investing in them, and nine per cent said they would be investing in a mega fund in 2010, compared to the 53 per cent targeting small and mid-sized funds.
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