Latest Funding Trends in Private Equity: Top Money-Raising Updates
In the dynamic world of private equity, collaboration is the new norm. Firms like Apollo Global Management, Neuberger Berman, Stone Point Capital, and Haveli Investments are leading the charge in formalizing co-investment structures with limited partners (LPs).
A prime example of this trend is Apollo Global Management's selection to manage Singapore's $1bn Private Credit Growth Fund. This mandate places Apollo at the centre of Singapore's latest push to position itself as Asia's private debt capital. The fund, run by Haveli Investments, is a major milestone for the firm.
Meanwhile, Neuberger Berman has closed NB Strategic Co-Investment Partners V at $2.8bn, surpassing its $2.25bn target. The fund, which closed at its hard cap in March, will target a globally diversified portfolio of direct equity co-investments. Stone Point and its affiliated entities contributed approximately $750m to the vehicle.
The growing trend in private equity co-investment strategies is driven by several factors. Co-investment activity has increased fivefold over the last two decades, reaching a record $33.2 billion in 2024, even amid muted dealmaking and tighter investor liquidity[1]. General partners (GPs) use co-investments to access fresh equity for growth or acquisitions, manage concentration limits, and strengthen relationships with LPs[1].
For LPs, co-investments offer advantages such as reduced or no management fees and carried interest, greater control over investment pace and diversification, and deeper engagement with favoured GPs[1]. Over two-thirds of co-investments are now structured with no management fees, and 42% have no carried interest, making them highly attractive to investors[1].
The challenges in fundraising and rising costs of debt have driven GPs to seek co-investors upfront to secure funding certainty[1]. This strategic evolution is part of broader shifts in the private equity landscape characterized by increasing operational complexity, investor demands for purpose and partnership, and a focus on execution and value creation[1][3][4].
Elsewhere, Haveli Investments, based in Austin, has raised $4.5bn for its first software buyout fund. The fund targets both minority and control stakes in enterprise software businesses. The investment strategy of Haveli Investments includes a mix of structured equity and debt offerings.
Haveli Investments focuses on software, data, gaming, and adjacent sectors. Backers of the fund include public and private pension funds, insurers, foundations, family offices, and high-net-worth individuals from across the globe. Notably, Stone Point Capital has closed Trident X, its tenth flagship fund, with $11.5bn in total commitments. Trident X surpassed its $9bn target and hard cap, marking Stone Point's largest fundraise to date.
The report about the fund's raise was published by the Wall Street Journal. The private equity firm was founded by Vista Equity Partners co-founder Brian Sheth. With these significant fundraisings, it is clear that the private equity landscape is evolving, with a growing emphasis on strategic partnerships and co-investment structures.
[1] Private Equity International, "PEI's Global Limited Partner Report", 2024 [2] Preqin, "Global Co-Investment Trends Report", 2024 [3] McKinsey & Company, "The future of private equity", 2022 [4] Bain & Company, "Global Private Equity Report", 2023
- Apollo Global Management manages Singapore's $1bn Private Credit Growth Fund, placing them at the center of Singapore's push to become Asia's private debt capital.
- Neuberger Berman's NB Strategic Co-Investment Partners V fund, which closed at $2.8bn, will target a globally diversified portfolio of direct equity co-investments.
- The growing trend in private equity co-investment strategies is driven by factors such as access to fresh equity, managing concentration limits, and strengthening relationships with LPs.
- For LPs, co-investments offer advantages like reduced or no management fees, greater control over investment pace, and deeper engagement with favored GPs.
- To secure funding certainty, general partners (GPs) are seeking co-investors upfront due to challenges in fundraising and rising costs of debt.
- Haveli Investments, based in Austin, has raised $4.5bn for its first software buyout fund, focusing on software, data, gaming, and adjacent sectors.
