Alternative investment firms hit record Q2 fundraising

Published On: August 25, 2020Categories: Alternative Investments1.2 min read

According to Fitch Ratings, a number of alternative investment firms achieved record fund raising levels during the second quarter

Several of the publicly traded alternative investment firms had their best fundraising periods on record in the second quarter, according to a report released Monday by Fitch Ratings.

Apollo Global Management’s $89.2 billion of inflows were primarily from transactions from its insurance business, the report noted. However, even without those inflows, Apollo took in $16 billion in the second quarter. By comparison, Apollo raised $7.3 billion in the first quarter, Fitch said.

Brookfield Asset Management raised $23 billion including $12 billion for Oaktree’s latest flagship distressed credit fund (Brookfield owns a majority interest in Oaktree); Blackstone Group raised $20.3 billion; and KKR raised $16 billion, including about $9 billion raised for its Asia private equity strategy during the quarter ended June 30, Fitch noted. Ares Management had one of its strongest fundraising quarters with around $9 billion. Carlyle Group raised the least during the second quarter at $4.6 billion.

By comparison, in the first quarter Brookfield raised $9 billion; Blackstone, $27.3 billion; KKR, $7.1 billion; Ares, $6.6 billion; and Carlyle, raised $7.1 billion.

Investment activity during the quarter slowed among the public alternative investment firms to a combined $44.5 billion in the second quarter, down from $50.3 billion in the year-earlier quarter.

Realizations picked up in the second quarter totalled $26.8 billion for the group, compared with $19.8 billion in the first quarter and $23.8 billion in the year-earlier quarter. But Fitch executives expect realizations to be sluggish for the rest of 2020. The increase was primarily driven by KKR, which generated more than 90% of its carried interest from investments outside the U.S. and more than half from non-private equity strategies.

About the Author: Jonathan Adams

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