Firm: Clayton, Dubilier & Rice
Fund: Clayton, Dubilier & Rice Fund IX LP
Target: $5 billion
Amount Raised: $3 billion
CD&R is providing at least $250 million in GP commitment to Clayton, Dubilier & Rice Fund IX LP, which brings the total to about $3 billion, the source told sister website peHUB. The New York private equity firm, which has invested in Sally Beauty and Hertz Global, has collected more than half of the $5 billion target for Fund IX. It aims to largely wrap up fundraising by the end of the year, the source said.
Fundraising for CD&R’s ninth pool officially began in March, peHUB has reported. Fund IX is targeting the same amount as CD&R’s prior fund. CD&R’s eighth pool collected $5 billion in late 2009. Fund VIII is generating a net IRR of just over 20 percent and a gross IRR of 33 percent as of June 30, the person said.
Founded in 1978, CD&R invests in several industries including consumer, retail, industrial and distribution. CD&R has scored some notable exits recently. The firm, along with Bank of America and The Carlyle Group, sold off its remaining stake in Hertz Global in May. CD&R also sold AssuraMed in March after a two-and-a-half year hold when Cardinal Health agreed to buy the company for $2.1 billion.
Also, in July 2012, CD&R sold its entire remaining stake in Sally Beauty. The PE firm made 3.4x its money on Sally Beauty, which generated a 26 percent IRR, peHUB has reported. However, CD&R made the investment in Sally from its seventh fund, which raised $4 billion in 2006.
Executives at CD&R declined comment.
Luisa Beltran is a senior writer for peHUB.