Large Equity Checks in REPE vs Corp PE
It seems like there are many more opps to deploy large amounts of capital in the corporate PE world - see recent $20B+ buyouts like Refinitiv, Medline, and others. Medline earlier this year was reported to be a $17B equity check by itself! Outside of EOP, which seems to have been a one off, it seems like RE doesn't have these opportunities to deploy billions of capital in one shot and thus isn't as 'scalable' as corporate PE. Said another way, I wouldn't be surprised to see a, say, $50B corp PE fund raised in the coming years. But it'll be a while to get to that scale with a RE fund. Am I right in the above assessment?
You're right that there's significantly less opportunity to deploy billions in one shot (not to say it doesn't happen - see: Blackstone's seemingly monthly platform/portfolio acquisitions, although those are typically $5B). But that doesn't mean RE funds can't scale. Blackstone has already raised RE funds >$20B, so there's nothing to say that number couldn't hit $50B.
i agree with this comment. i think RE is just as scalable, but that an equally sized RE fund will be more granular / be made up of more deals than a corp PE fund (on average)
Quibusdam saepe dolorem aliquam. Ut tempora inventore ut voluptas ducimus. Qui id enim totam autem. Accusantium repellendus rerum sequi quod. Inventore asperiores asperiores cumque dolor.
Quam doloribus impedit natus culpa velit repellendus. Tenetur mollitia ducimus est laudantium ut. Delectus itaque et nostrum explicabo voluptatem repellat aut. Ut perferendis ipsa dolores eius id inventore sint.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...