Surge in Private Equity Investments Driven by Growing Demand for Alternative Investments
Total Fundraising in First Half of Year Up 70% Year-on-Year
[Asia Economy Reporter Kim Suhwan] The global leading private equity firm Carlyle Group is set to raise a fund worth $27 billion (approximately 31 trillion KRW), the largest ever in the industry. As demand for alternative investments rises and capital flows into private equity funds, attention is focused on whether Carlyle Group's large-scale fund raising will cause a seismic shift in the private equity industry.
On the 22nd (local time), Bloomberg reported that Carlyle Group plans to raise a $27 billion fund, and discussions among investors regarding the exact fund size are currently underway.
If it succeeds in raising such an amount, Carlyle Group is expected to create the largest fund in industry history. The previous record was a $26 billion (approximately 30 trillion KRW) fund raised by Blackstone, the world's largest private equity firm, in 2019.
A source revealed that Carlyle Group will focus its investments on venture companies, especially in healthcare, through this newly raised fund.
This large-scale capital raising comes amid growing demand for alternative investments, which has been attracting funds into the private equity sector.
Alternative investments refer to investment methods targeting non-traditional assets such as venture companies, commodities, real estate, and infrastructure, rather than traditional investment products like stocks or bonds.
Among various asset classes, it involves investing in the highest-yielding asset classes, making it a rapidly emerging investment category in the private equity industry recently.
Earlier this month, private equity firm Hellman & Friedman successfully raised $24.4 billion (approximately 28 trillion KRW), marking the largest capital raise in the company's history.
According to market research firm Preqin, private equity fundraising in the first half of this year reached $514 billion (approximately 591 trillion KRW), a 70% increase compared to the same period last year.
The stock prices of private equity firms are also strong. Carlyle Group's shares have risen 47% since the beginning of this year, while KKR and Blackstone have increased by 50% and 70%, respectively.
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