25 January 2024
‘Blackstone raised $20bn in private equity capital in 2023. That’s 8% of what was raised by 673 small cap and mid cap private equity funds (funds under $2.5bn) combined, demonstrating the gravitational pull for capital that these large fund managers benefit from. Not all was lost though for the mid market which still drew in significant capital in 2023, at $180bn globally, down 13% from 2022.
‘Diversification by large private capital fund managers meant fundraising by Blackstone continued unabated in all of its asset classes last year. Not only does this reduce the overall risk profile of these fund managers and bring economies of scale, but it also gives their acquisition teams the ability to call on multiple instruments from their own 'toolbox'. This improves their ability to more quickly structure and execute the best deal for both the sellers and themselves - possibly helping bridge the still present, albeit narrowing, divide in value expectations that persist in this unsettled global economy.’