KKR doubles down on Toorak Capital; AlpInvest, HarbourVest lead Oaktree fund revamp; Which GP is next to sell a minority stake?
It’s midweek, Hubsters. I’ll be at the Future of Fintech conference later today. Who else is going?
Private equity firms selling chunks of themselves to outside investors has produced a lot of buzz. A flood of capital is entering the space and the “Big 3” — I’m referring to Blackstone’s Strategic Capital Holdings, Dyal and Goldman Sachs’ Alternative Investments and Manager Selection (AIMS) Group — are all out fundraising, according to PitchBook. Dyal is expected to close the biggest GP stakes fund at $7 billion, the data provider said. BX’s second GP stakes pool boosted its target to $6 billion from $3.3 billion, while Goldman is seeking $4 billion for another Petershill fund.
What sort of GPs do these firms like? Firms that invest in GP minority stakes typically want managers that are “garnering vast sums of capital and able to seek aggressive stepups between funds,” the report said. Of those firms that have received a GP stakes investments, more than 60 percent of their prior funds were in the top two quartiles on average, PitchBook said.
PitchBook focused on PE firms that have raised between $2 billion and $25 billion, because it believes the newer managers don’t have a track record yet to support a GP stakes investment. Probable sellers among larger GPs, those that have raised between $10 billion and $25 billion, include Summit Partners, GTCR and Genstar. Smaller GPs on the list include Charlesbank and Arsenal Capital.
Hubsters, who do you think is next to sell? Email me your thoughts at email@example.com
Mo’ Money: Carlyle Group will likely exceed its $100 billion fundraising goal by the end of this year, co-CEO Glenn Youngkin said, according to Bloomberg. This comes as Blackstone is also looking to bring in $100 billion.
Deals: KKR has doubled its investment in Toorak Capital Partners to $500 million. The buyout shop had initially committed $250 million to Toorak back in 2018. See our brief here.
KKR is also leading a $300 million round for KnowBe4, which provides security awareness training. Check out our brief here.
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