We ended the second quarter 2023 report on a cautiously optimistic note. We noted that 2023 was posting historically poor capital-raising numbers. However, there are several double-digit billion-dollar funds in the market (five targeting more than $20 billion), all sponsored by large successful managers. If two or three of those funds closed, 2023 could still end up a respectable year, even if disappointing compared with 2022. How is that optimism playing out? Well, at the end of third quarter 2023, we are still waiting for that influx of capital from megafunds. Actually, we’re waiting for an influx of capital from just about any size funds.

Thanks almost entirely to Blackstone’s $7.1 billion debt fund ­— Green Private Credit Fund III — funds reaching a final closing in third quarter 2023 raised more than the first two quarters combined. With seven funds announcing a final closing, third quarter’s total raise came to $12.4 billion. Three-quarters of the way through