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 totaled $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.