At least the corporate world, according to Martin Halusa. The CEO of Apax Partners, speaking at the recent World Economic Forum in Davos, Switzerland, suggested that one of these days, maybe a decade from now, there may be a $100 billion private equity fund, big enough to acquire some of the world’s largest corporations. “The private equity industry is set to grow hugely,” said Halusa. “It has delivered better returns than many other asset classes and institutions are increasing their asset allocations.” Can it happen? “Not a chance,” says Daniel Primack of PE Week Wire, who, using The Blackstone Group as an example, points out that the firm is on the verge of closing the world’s largest hedge fund at $13 billion, but since the firm closed its first fund in 1987 at $810 million, it has, decade-wise, grown its fund closings by 466% and 346% in 1997 and now; to reach $100 billion, the firm “should have to severely accelerate its trajectory” and manage a 770% increase. Still, with the way money is pouring into private equity, anything is possible. In fact, Candover‘s Marek Gumienny, commenting in Financial News, said Europe may see its first €20 billion (US$24.3 billion) buyout in 2006. Stay tuned.
