Hellman & Friedman returns with Fund IX

  • Target remains TBD, says Minnesota memo
  • Fund IX likely to receive a lot of attention from new, existing LPs
  • Firm expected to deploy between $300 mln and $1 bln per deal

Hellman & Friedman is raising a follow-up to the $10.9 billion vehicle it closed in 2014, according to Minnesota State Board of Investment documents obtained by Buyouts.

The firm hasn’t set a target for Hellman & Friedman Capital Partners IX, according to a Minnesota staff memo.

Minnesota, an LP in five of the firm’s previous funds, committed up to $200 million to the fund at its March 1 meeting. The pension’s largest allocation to a Hellman & Friedman fund prior to Fund IX was a $175 million commitment to Fund VI in 2006.

Given the firm’s history, and extensive investor base, it’s likely Fund IX will receive considerable attention from both new and existing limited partners, one LP told Buyouts. Other LPs said they hadn’t expected Hellman & Friedman to be back in the market so early in 2018.

The San Francisco-based firm’s previous fund has yet to generate meaningful returns, according to the Minnesota staff memo. Fund VII, which raised $8.8 billion in the aftermath of the global financial crisis, was netting a 25 percent internal rate of return through Sept. 30.

Hellman & Friedman invests in large buyouts, typically allocating between $300 million and $1 billion of equity per deal, according to the Minnesota memo. Fund IX is expected to invest in businesses in the software, financial services, media, business and information services, healthcare, insurance, retail, consumer, and energy and industrial sectors.

Last year, the firm acquired SnapAv from General Atlantic. The company designs security and audio/visual products for residences.

Hellman & Friedman was founded in 1984 by Warren Hellman and Tully Friedman.

The firm declined comment.

Action Item: For more on Hellman & Friedman, visit www.hf.com

Buyouts Executive Editor David Toll interviews Tully Friedman, co-founder of Hellman & Friedman and FFL Partners. Photo by Sam Sutton.