Apollo Management LP, the private- equity firm led by Leon Black, raised almost $15 billion for its latest fund, according to a person familiar with the matter, after suffering losses on investments such as Huntsman Corp. and Harrah's Entertainment Inc, Bloomberg reported.
Apollo Investment Fund VII LP, which had a target of $15 billion, closed in mid-December after the New York-based firm canvassed investors for 16 months, said the person, who asked not to be identified because Apollo hasn't made the information public. Steven Anreder, a spokesman for the company, declined to comment on the fundraising, which was reported earlier by Private Equity Analyst.
"Today and for the next two years there will be huge opportunities for those who have capital," Black said today at a conference in Philadelphia, referring to deals involving distressed debt.
Returns on Apollo's previous fund dropped to 21 percent through March 31 from its July 2006 start. At the end of 2007, its gains stood at 42 percent. For all the private-equity funds, Apollo has returned 28 percent through March 31.
Last month, Apollo agreed to pay $1 billion to terminate its acquisition of Huntsman, a chemical maker run from Salt Lake City and Houston. Harrah's, which Apollo and TPG Inc. bought in January 2008, has posted four straight quarterly losses and last month got investors to agree to a debt swap to stave off default.
