Code Hennessy Closes Fund V –

Code Hennessy & Simmons LLC announced the closing of its largest private equity fund to date, CHS Private Equity V LP. The Chicago-based firm collected a total of $1.3 billion dollars from limited partners since fundraising began last August, comming out just ahead of its $1.25 billion target. The fund came out just a little ahead of its $1.25 billion target. Code Hennessy did not return phone calls by presstime.

According to the firm’s Form D filing, no placement agent was employed to help secure commitments for the fund, which carried a minimum investment of $10 million.

Firm: Code Hennessy & Simmons LLC
Fund: CHS Private Equity V LP
Total Capitalization: $1.3B
Target: $1.25B
Legal Counsel: Kirkland & Ellis LLP

Code Hennessy did not disclose the names of any of Fund V’s limited partners, however, the Massachusetts Pension Reserves Investment Management (MassPRIM) 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 Fund V, according to the pension’s meeting minutes. SERS reportedly invested $100 million in Code Hennessy’s previous fund, which closed in 1999.

Through Fund V, the firm said it will continue to make control equity investments in companies valued between $100 million and $500 million in its preferred industries, which include including distribution, industrial products, consumer goods and business services. Code Hennessy’s current portfolio consists of 18 operating companies with combined annual revenues of more than $4.6 billion.

Fund V is $300 million larger than its predecessor fund, which raised a total of $1 billion before closing in 1999 above its $850 million target. The total capitalization of Code Hennessy’s latest fund is a world away from where the firm was when it closed its debut vehicle. With 26 limited partners aboard, Fund I closed in 1989 with $82.5 million. Fund II nearly doubled its predecessor, closing on $155 million in 1994. About three years later the firm raised $350 million for its third buyout fund, which closed in 1997.

Previous investors in Code Hennessy funds include Allegheny Teledyne Inc., Berea College, General Motors Investment Management Corporation, Harvard Management Company Inc., K & E Partners, Pantheon Ventures Inc., and the University of Washington, according to Thomson Venture Economics, publisher of Buyouts.

Since its founding the firm has invested in 56 platform companies and completed 130 add-on acquisitions.