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LONDON, April 23 European private equity house
Ardian raised $10 billion in its latest fundraising cycle, it
said on Wednesday, creating the industry's largest ever fund of
funds as investors pile into private equity.
The firm's sixth-generation fund is composed of $9 billion
from its secondary buyout and expansion platform, and another $1
billion in primary commitments.
Secondary deals allow private equity companies to buy
businesses from one another.
In 2012, Ardian raised $8 billion for its fifth fund of
funds. A fund of funds puts investor money into selected private
equity funds around the world.
Top private equity houses have attracted increasingly large
sums from investors hungry for returns, with the industry
sitting on $1 trillion in unspent capital, or "dry powder" this
But the sector has been pressured by competition from strong
equity markets, which have seen some companies opting to float
rather than be bought out by private equity, and corporations
paying huge sums for businesses.
(Reporting by Freya Berry; Editing by Clare Hutchison and Mark