Blackstone raises $13.5bn for Fund VI

The Blackstone Group has collected $13.5 billion for its sixth buyout fund, the firm revealed in an earnings call Thursday. It is expected to close soon pending an unspecified number of additional commitments.

The firm had announced during a conference call earlier Thursday the fund had closed, but a spokesperson clarified later that “we have a few institutions that needed a bit more time. When all is said and done we expect to have a fund total of approximately $13.5 billion”.

Blackstone began raising Fund VI in the fall of 2008, originally planning to raise up to $20 billion. The target was later revised down to $15 billion.

Steve Schwarzman

As of 30 June 2010, the unrealised value and cumulative realised proceeds – before carried interest, fees and expenses – of Blackstone’s private equity funds represented 1.4 times investors’ original investments. Excluding funds still in their investment periods, the value was 2.2 times original investments, the firm said.

Blackstone’s private equity net return was 2.3 percent in the second quarter of 2010, compared to 4.2 percent in the same period last year and 15 percent in the first quarter of 2010. Approximately $469.8 million of LP capital was invested in the second quarter.

The firm’s private equity revenues dropped in the second quarter to $84 million, compared to $198.6 million in the same period last year. But the for the six months ended 30 June, the firm had revenues of $361 million, an increase of more than 35 percent compared with revenues of $267 million in the same period in 2009.

Blackstone attributed the quarterly decrease to “negative performance fees and allocations of $22.9 million, compared to positive $97.2 million for three months ended 30 June 2009”, Blackstone said in a statement.