Mega Buyout Funds Raise $85 Billion in 2013, Preqin Data Show

Jan 10, 2014 4:40 pm ET

Jan. 10 (Bloomberg) -- The largest buyout funds, which fell out of favor after the 2008 financial crisis, have made a comeback after accounting for half of the capital gathered last year, according to London-based data provider Preqin Ltd.

Mega funds, counted as those with more than $4.5 billion in assets, raised $85 billion of the $169 billion collected by leveraged buyout funds last year, the data show. It is the first time since 2008 that such funds accounted for half of the capital raised by firms to invest in buyouts.

Firms such as Apollo Global Management LLC, Carlyle Group LP and Silver Lake Management LLC have benefited as investors have become more selective about the managers they back and put more money with top-performing managers. Apollo said yesterday it raised $18.4 billion for its buyout fund, making it the largest pool gathered since the financial crisis. Carlyle collected $13 billion last year for its sixth buyout fund, and Silver Lake raised $10.3 billion.

Buyout fundraising increased 78 percent last year from $95 billion in 2012, according to the data. Buyout funds last year raised the most capital since 2008, when funds gathered $230 billion.

--Editors: Sree Vidya Bhaktavatsalam, Josh Friedman