After buyout companies enjoyed years of raising money at a rapid clip, Apollo Global Management and Carlyle Group are sending their strongest signal yet that era is fading.
Apollo, among the most aggressive private equity companies in gathering cash, told investors this year it planned to raise its $25 billion fund in one go by year-end. It has changed the timetable.
The company is preparing an initial close of that fund in the next month or so — at half the original goal, although it still plans to raise the full amount eventually, according to sources. It also told clients it will continue to collect money into next year.
“There’s no way anyone will raise money on the schedule they’ve initially envisioned,” Apollo chief executive Marc Rowan said at the Milken Institute Global Conference in May.
Carlyle told investors at a client meeting this month that it had gathered about $15bn so far for its new buyout and growth fund, the sources said. That is less than the $17bn it anticipated collecting by roughly midyear as it targets raising $22bn for the flagship fund.
At the same time, executives at Washington-based Carlyle said at that meeting that they expect fundraising for the vehicle to be slower than the company originally set out, the sources said.
Investors were told that Carlyle understood the constraints that pensions and other big institutions face parting with cash during volatile markets.
The private equity industry faces one of the most challenging fundraising environments in years, creating a test for a rising generation of buyout leaders.
Pension fund and endowment coffers have shrunk in the stock sell-off, making them reluctant to lock up more money in funds that are hard to sell and value.
The end of easy-money central bank policies, rising odds of a recession, and Russia’s invasion of Ukraine have made investors wary.
Many have maxed out how much they can put to work in private equity — and cannot afford the risk of adding more exposure to buyouts and private markets.
There’s no way anyone will raise money on the schedule they’ve initially envisioned
Marc Rowan,
Apollo chief executive
“There is an overcrowding” in private equity, Carlyle chief executive Kewsong Lee said at an investment conference this month.
That is in part because funds are doing deals faster than investors planned for and coming to market faster than expected, Mr Lee said.
That is creating more difficulty for companies racing for cash to put to work before a potential economic downturn. The biggest are raising giant buyout funds at the same time.
Blackstone, Carlyle and Apollo are collectively seeking more than $70bn for flagship funds.
For New York-based Apollo, the earlier initial close for its $25bn fund will allow the company to continue to finance deals at a time when it has only $2bn to $3bn of dry powder as its previous fund is almost fully tapped out.
It is already in the mix on several big transactions. Apollo is part of a group said to have put in a binding bid for Walgreens Boots Alliance’s international arm. It is also said to be among potential bidders for Grubhub, the US unit of Just Eat Takeaway.com.
As Mr Rowan sees it, Apollo is likely to take about a year to raise its new fund. The previous flagship took six months to raise.
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 268hp at 5,600rpm
Torque: 380Nm at 4,800rpm
Transmission: CVT auto
Fuel consumption: 9.5L/100km
On sale: now
Price: from Dh195,000
Company%20Profile
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The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Friday's schedule in Madrid
Men's quarter-finals
Novak Djokivic (1) v Marin Cilic (9) from 2pm UAE time
Roger Federer (4) v Dominic Thiem (5) from 7pm
Stefanos Tsitsipas (8) v Alexander Zverev (3) from 9.30pm
Stan Wawrinka v Rafael Nadal (2) from 11.30pm
Women's semi-finals
Belinda Bencic v Simona Halep (3) from 4.30pm
Sloane Stephens (8) v Kiki Bertens (7) from 10pm
Did you know?
Brunch has been around, is some form or another, for more than a century. The word was first mentioned in print in an 1895 edition of Hunter’s Weekly, after making the rounds among university students in Britain. The article, entitled Brunch: A Plea, argued the case for a later, more sociable weekend meal. “By eliminating the need to get up early on Sunday, brunch would make life brighter for Saturday night carousers. It would promote human happiness in other ways as well,” the piece read. “It is talk-compelling. It puts you in a good temper, it makes you satisfied with yourself and your fellow beings, it sweeps away the worries and cobwebs of the week.” More than 100 years later, author Guy Beringer’s words still ring true, especially in the UAE, where brunches are often used to mark special, sociable occasions.
UAE currency: the story behind the money in your pockets
Small Victories: The True Story of Faith No More by Adrian Harte
Jawbone Press
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
More about Middle East geopolitics
Innotech Profile
Date started: 2013
Founder/CEO: Othman Al Mandhari
Based: Muscat, Oman
Sector: Additive manufacturing, 3D printing technologies
Size: 15 full-time employees
Stage: Seed stage and seeking Series A round of financing
Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now.
'The%20Alchemist's%20Euphoria'
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GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
Jumanji: The Next Level
Director: Jake Kasdan
Stars: Dwayne Johnson, Kevin Hart, Karen Gillan, Jack Black, Nick Jonas
Two out of five stars
The biog
Family: Parents and four sisters
Education: Bachelor’s degree in business management and marketing at American University of Sharjah
A self-confessed foodie, she enjoys trying out new cuisines, her current favourite is the poke superfood bowls
Likes reading: autobiographies and fiction
Favourite holiday destination: Italy
Posts information about challenges, events, runs in other emirates on the group's Instagram account @Anagowrunning
Has created a database of Emirati and GCC sportspeople on Instagram @abeermk, highlight: Athletes
Apart from training, also talks to women about nutrition, healthy lifestyle, diabetes, cholesterol, blood pressure
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