Private Equity Is Thriving

Amidst all the market chaos going on, it’s a good thing someone is thriving. According to Bloomberg, Blackstone Inc. is reportedly gearing up to raise capital for the biggest PE buyout fund ever. ๐Ÿ’ชย 

Private equity funds are pools of money raised from investors that firms use to buy companies (or other asset classes, like real estate) which yield high rates on return on initial investments. Itโ€™s reported that Blackstone could raise up to $30 billion for its next private equity fund with the raise tentatively scheduled to begin next year.

Meanwhile, similar firms are looking to boost their fund sizes, too โ€” itโ€™s estimated that 6,000 different PE funds are fixing to pull in over $1 trillion to fill their coffers and makes some deals.

Two years ago, Blackstone raised $26 billion for its flagship buyout fund. The firm could also look to raise up to $10 billion for a growth fund. Blackstoneโ€™s peers, like Carlyle Group and Hellman & Friedman, just pooled $27 billion and $24.4 billion for their funds, respectively. ๐Ÿค‘

Low interest rates are capping returns for investors, so funds are on the hunt for higher-yield investments. The good news? Thereโ€™s no shortage of investment opportunities for PE funds these days… unlike the rest of literally every other market right now. ๐Ÿ˜… ๐Ÿ˜ฌ

$BX was up 1.46% today.

All Eyes on PE ๐Ÿ”Ž KKR Raises $5 Billion for New Fund

KKR & Co is an NYC-based investment company that just unveiled plans for its first fund ever investing exclusively in mid-size companies. KKR is trying to raise $5 billion for the new fund. ๐Ÿ’ฐ

KKR, formerly known as Kohlberg Kravis Roberts & Co, is a private equity GIANT. Weโ€™re talking roughly 280 private equity investments worth $545 billion. The firmโ€™s new fund for mid-size companies, called โ€˜Ascendant,โ€™ will target a variety of sectors, including financial services, healthcare, industrials, consumer, technology, media and telecommunications.ย 

Read It

Just How Cool Have Funding Markets Gotten?

Last week Pitchbook released its Q2 2022 U.S. VC Valuations Report, which had some interesting stats about the current environment. ๐Ÿ“

Early-stage valuations are beginning to reflect broader economic uncertainty, as quarter-over-quarter median pre-money valuations saw their first decline in ten quarters. The median pre-money valuation for early-stage VC was $52 million, down 16.1% YoY.

Read It

The Early-Stage Explosion ๐Ÿ’ฃ

The startup space was hot in 2021 ๐Ÿ”ฅ โ€” over the last year, capital has been flowing into seed-stage and early-stage startups. As a matter of fact, a record of $93 billion was invested in early-stage companies last year. But could that trend backfire soon??ย 

From web3 to edtech, capital from VC firms flooded a variety of sectors in 2021. During and after the pandemic, tech-based startups provided a plethora of early-stage investing opportunities so innovative and enticing to investors that the median valuation of most seed or early-stage startups ballooned last year. ๐ŸŽˆ ๐Ÿ’ฃ In 2021, the median valuation of an early-stage U.S. startup was $26 million โ€” in 2020, that median valuation was $16 million.

Read It