Avista Capital Looks to Raise $2B Fund

Firm: Avista Capital Partners

Fund: Avista Capital Partners (Offshore) III LP

Target: $2B

Avista Capital Partners is raising a new fund after closing its last pool less than two years ago, according to sister Web site peHUB.

Avista Capital, which has offices in New York, Houston and London, is seeking to raise a $2 billion pool, according to sources and a Form D SEC filing. The name of the new fund is Avista Capital Partners (Offshore) III LP.

Founded in 2005, Avista Capital is made up of former executives of DLJ Merchant Banking. Thompson Dean, an Avista Capital co-managing partner, is a former managing partner at DLJ MB. Dean helped co-found Avista Capital along with Steven Webster, who is also a co-managing partner (Dean is the former chairman of DLJMB Global Energy Partners). David Burgstahler, also an Avista Capital co-founder, was a partner of DLJ Merchant Banking. He is now an Avista Capital partner and president. Nearly all of Avista Capital’s other partners are former DLJ MB executives.

One source was surprised Avista Capital is fundraising again. In March 2010, the firm announced the final close of its second fund which raised $1.8 billion. “They basically had already put a bunch of money to work by the final close,” the source said.

Avista Capital Partners II LP had a net IRR of 55.4 percent, according to a June 30, 2010 quarterly report from backer CS Pacific.

Since that time, Avista Capital has been very active. In September 2010, the firm announced plans to buy the global auto care unit of Clorox Co. Avista Capital earlier this year agreed to invest in Celtique Energie Holdings. The firm on June 15 bought DataBank Holdings from Freeman Group. The next day, Avista Capital said it had bought Anthony International.

Avista Capital, which makes control or influential minority investments, focuses on energy, health care, media, industrial and consumer businesses.

Officials for Avista Capital couldn’t be reached for comment.

(Luisa Beltran is a reporter for sister Web site peHUB.)