The Last Of The Mega Funds? Blackstone Closes $16 Billion Fund

Steve Schwarzman

Photo: BloombergTV

It took four years to do it, but in January, Blackstone plans to close a $16 billion private equity fund, Reuters reports.The fundraising process for Steve Schwarzman’s firm was complicated by the global financial crisis, which battered PE performance and caused institutional investors to be much more reticent in writing huge checks to buyout firms.

And while the fund’s size is impressive (it will be the largest private equity fund in the market), it will only be the sixth largest fund to be raised and comes on the back of several years of disappointing fundraising efforts for private equity firms.

Based on that kind of trend line, it’s unlikely we’ll see a private equity fund this size for a while:

Private equity firms raised $263 billion in 2011, slightly less than in 2010, according to Preqin, and a far cry from the height of the buyouts boom leading up to 2007, when they pulled in around $600 billion a year. 

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at