According to this report, buyout/mezzanine funds raised $86.2 billion in 2005, a new record. In 2004 they raised $25.2 billion. Venture funds raised $25.2 billion in 2005, the highest level since 2001 when they raised $38 billion but less than a third of the buyout/mezzanine fund number.
The big up tick on the buyout side is attributable to 17 mega funds which raised 67% of the year’s total. Blackstone Capital set the record for largest private equity fund ever raised when it closed on just over $11 billion in the fourth quarter.
So where will all the buyout money be spent? The report speculates that buyout funds will start acquiring venture-backed companies.
