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)
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