Securing commitments

Mega buyout houses such as Apollo, TPG, Blackstone and Kohlberg Kravis Roberts are in the process of raising jumbo funds, but in a much stickier environment than before. Sovereign wealth funds have stepped in to make up for smaller investments by pension funds, which now have less appetite for the largest funds. With few exits being made, LPs are feeling the pain because they are not receiving cheques, either from profits of holdings sales or from generous dividend payments from portfolio companies of the largest buyout houses. However, this could mean that the smaller houses can attract investors that previously were unattainable for them. Some prominent Nordic firms are currently fundraising or preparing to, most notably Nordic Capital and Altor. These funds are already high profile and popular among investors; they could potentially become more sought after than before. Consistent performance has also been the norm for them, a trait much appreciated by LPs