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Firms & Funds

Dubai-based buyout shop Abraaj Capital will pour 2 billion riyals ($533 million) into Saudi Arabia, investing in small and medium size enterprises, Reuters said. The investments are expected to be made over the next two years, Reuters said. Abraaj Capital has raised roughly $7 billion since it launched in 2002.

Alpine Investors, the California private equity firm, completed a $260 million closing of its Alpine Investors IV LP fund and its Alpine Investors IV SBIC fund to make equity investments and mezzanine deals. Existing assets include home furnishing and marketing investments, among others.

Dutch private equity firm AlpInvest Partners will be bought by a joint venture between The Carlyle Group and AlpInvest’s management, Reuters reported. Financial terms were not released. Two Dutch pension managers, APG and PGGM, are selling their stakes in AlpInvest, but will continue to commit funds to the group, Reuters said. AlpInvest has more than 40 billion euros in funds and commitments.

Baring Private Equity Asia has closed its largest fund to date, with $2.46 billion, Reuters reported. The fund will invest across a range of Asian countries. Baring has more than 30 institutional investors contributing to the new fund, Reuters said, with roughly half coming from North America, and 28 percent from Asia and a quarter from the Middle East and Europe.

The Blackstone Group

reported that its fourth quarter economic net income rose 56 percent to $512.7 million, while ENI for the full year more than doubled to $1.4 billion. Revenue for Blackstone’s private equity division was $828.4 million in 2010, up from $775.2 million in 2009. Blackstone said it has $16.5 billion in dry powder as of Dec. 31. Economic net income, a measure used by private equity firms to report earnings, represents income from fees, investment income minus expenses and gains on investments.

The Blackstone Group will begin fundraising this year for its next real estate fund, which could reach as high as $10 billion, Reuters reported. The firm raised $10 billion for a similar fund in 2008. That fund, Blackstone Real Estate Partners VI, is about 70 percent invested, Reuters said.

Egyptian private equity firm Citadel Capital planned to resume operations, even as violent protests wracked its homeland, Reuters reported. The firm said, while its operations in other countries have continued as usual, that unrest in Egypt may have a short-term impact on its investment and divestiture plans, Reuters said.

Canadian private equity firm Clairvest Group Inc. has closed its fourth fund, Clairvest Equity Partners IV LP, with $467 million of committed capital. The fund closed with 17 percent more than the firm’s original $400 million target, the firm said. NovaFund Advisors acted as Clairvest’s placement agent outside Canada.

Duet Private Equity is planning to launch a mezzanine debt fund in 2011 that will be quoted on the London Stock Exchange’s main board, Reuters reported. The fund, Duet Real Estate Finance Ltd., will invest the net proceeds of its £100 million ($158.1 million) fundraising, and will aim to help fill a European commercial real estate financing gap, Reuters said.

EnCap Investments said it has raised $3.5 billion with its latest fund. EnCap Energy Capital Fund VIII was “significantly oversubscribed,” the firm said. EnCap is an oil and gas buyout firm with offices in Dallas and Houston.

Fifth Street Finance, a specialty finance company, has priced a secondary offering of 10 million shares at $12.65 each. White Plains, N.Y.-based Fifth Street plans to use the $126.5 million in proceeds to make investments in small and mid-sized companies. Wells Fargo Securities, Morgan Stanley, UBS, Deutsche Bank and RBC served as joint-bookrunners on the deal.

Kohlberg Kravis Roberts & Co. is targeting between $8 billion and $10 billion for its new fund, and has already sealed a $525 million commitment from the Oregon Investment Council, Reuters reported. The new fund is expected to focus on North America.

Indian private equity firm Milestone Capital Advisors plans to invest $450 million this year, Reuters reported. The firm will focus on education, health care and real estate industries. Milestone, which is also planning an initial public offering this year, has roughly $900 million under management, Reuters wrote.

PAI Partners is selling several of its portfolio companies, and plans to return money to investors and begin fundraising for a new fund in late 2011, Reuters reported. The sales could allow the firm to wrap up its third fund, raised a decade ago, Reuters wrote.

Chicago-based Prairie Capital closed its fifth fund oversubscribed with $300 million in committed capital. Prairie Capital typically acquires U.S. companies with annual cash flows of $4 million or more and recurring annual revenues in excess of $20 million.

TPG Credit Management has closed its new fund, Airline Credit Opportunities II, with $604 million. The limited partners include unnamed endowments and foundations, family offices, funds of funds and pension funds, the firm said. The new fund, which exceeded its original $400 million target, will invest broadly across the aviation industry. TPG Credit Management has offices in Minneapolis and London.