PE HUB Wire Highlights, 6.6.19


Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

Longtime fundraiser Ryan Schlitt to leave Credit Suisse; Advent to invest in Definitive Healthcare; How to tell if that deal is really SaaS

It’s Thursday, Hubsters. How is everyone?

We have big fund news this morning. Advent’s ninth global PE fund closed on its $17.5 billion hard cap. The total is a roughly 35 percent increase from the firm’s last global pool, GPE VIII, which raised $13 billion in 2016.

Of course, everyone is waiting for Blackstone’s mammoth pool, expected to be the biggest ever. BX’s eighth PE fund raised more than $22 billion in a first close, Crain’s New York Business reported in April. There’s not a limit set for this Blackstone pool, which is expected to eclipse Apollo’s record $24.7 billion when it wraps up fundraising later this year, Crain’s said.

I don’t talk about fundraising too often, but it seems as if everyone is racing to get their funds set before the bubble bursts. Many GPs have talked to me about firms that are raising funds and then shelving them to use later. Sort of like the lunches you prepare for school.

Now Chris has written about this trend. GPs are coming back earlier than expected and raising funds that won’t be activated for months. Chris says these GPs don’t charge fees until their funds are activated, of course.

For me, this doesn’t seem fair to those firms that are toiling away raising funds. I’m talking about the GPs that aren’t having an easy time raising capital. Not only are the sought-after firms taking their slice of the pie, they’re taking money that could go to other GPs. It feels like double dipping. (Cue the “Seinfeld” episode where George gets caught sticking the same potato chip into the party dip twice.)

Hubsters, how do you see this? Email me at lbeltran@buyoutsinsider.com

Also in funds, Third Rock Ventures this morning said it closed its latest flagship on $770 million. Third Rock Ventures V LP invests in life sciences companies. See our brief here.

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