Code Hennessy & Simmons LLC has closed its largest private equity fund to date, CHS Private Equity V LP. The Chicago-based firm collected $1.3 billion in commitments from limited partners since fund-raising began last August, beating its $1.25 billion target.
Code Hennessy did not disclose the names of any of fund V’s limited partners. However, Massachusetts Pension Reserves Investment Management reportedly made a $50 million commitment to the fund late last year. Also, at a September 2004 board meeting, the Pennsylvania State Employees Retirement System (SERS) approved an investment of up to $50 million to the fund, according to the pension’s meeting minutes. SERS reportedly invested $100 million in Code Hennessy’s previous fund, which closed in 1999.
Code Hennessy will continue to make control equity investments in companies valued between $100 million and $500 million in its preferred industries, which include distribution, industrial products, consumer goods and business services. Code Hennessy’s current portfolio consists of 18 operating companies with combined annual sales of more than $4.6 billion.
Fund V is $300 million larger than its predecessor fund, which raised $1 billion before closing in 1999 above its $850 million target.
Previous investors in Code Hennessy funds include Allegheny Teledyne Inc., Berea College, General Motors Investment Management Corp., Harvard Management Co. Inc., K & E Partners, Pantheon Ventures Inc. and the University of Washington, according to Thomson Venture Economics, publisher of PE Week.