Apollo raises $14.8 bln fund, just shy of target

By Megan Davies

PHILADELPHIA, Jan 23 (Reuters) - Apollo Management LP [APOLO.UL] founder Leon Black said on Friday the private equity firm had finished raising its latest fund in December, with the final sum raised $14.8 billion -- just shy of a $15 billion target.

The fund, Fund VII, took about 16 months to raise and about 20-25 percent of it is already invested, mostly in credit, he said on the sidelines of a private equity conference held by Wharton University.

Raising funds has become increasingly hard for private equity firms, so managing to raise a fund at or close to target in the current market is an achievement.

Black said at the conference that he saw great opportunities to invest in credit and distressed companies.

"For the next two years, there will be huge opportunities in distressed for those that have capital," Black said.

But his outlook for the economy was "pretty bleak," with banks, financial markets and credit markets basically shut.

"The effect on private equity is varied and profound," he said. "There is no private equity from a traditional point of view and hasn't been for the past year."

Apollo did a number of deals during the private equity boom and has investments in companies including gaming firm Harrah's Entertainment Inc, Claire's Stores and real estate company Realogy.