Apollo Secures $24.6 Billion for Largest Private Equity Fund Ever

Strong historical returns and booming investor interest in asset class allow for record raise.

Apollo Global Management raised $24.6 billion for its Apollo Investment Fund IX according to SEC filings on Wednesday, making it the largest private equity fund ever. The move comes as private equity fundraising is on par to reach record levels and rivals are raising their own megafunds.

The fund surpasses Blackstone Capital Partners V, which closed on $21.7 billion in 2007, to become the largest fund ever raised, according to research firm Pitchbook. It’s $6 billion larger than Apollo’s eighth fund, which raised $18.4 billion in 2013.

That fund has generated a net internal rate of return (IRR) of 16%, Apollo said in its May investor presentation. Its seventh fund posted a net IRR of 26%, and the fund prior posted a net IRR of 9%. Dating back to 1990, its private equity funds have had an overall net IRR of 25%, according to its investor presentation.

Apollo previously had total assets under management (AUM) of $197 billion, with $45 billion in private equity, $141 billion in credit, and $12 billion in real estate.

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Public pensions are its largest investor base and account for 33%, followed by sovereign and governmental investors at 21%, according to investor presentations.

Of the prior $44.6 billion in its private equity portfolio, $12 billion was in dry powder—or uninvested capital—as of May.

Apollo has previously bought ADT, Fresh Market and Rackspace Hosting, among other high-profile acquisitions.

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