Clayton, Dubilier & Rice is nearing a final close on its seventh fund, and buying Hertz might provide the extra push it’s been looking for.
The New York-based firm retained Credit Suisse First Boston in late 2004 to help raise the fund with a $3.5 billion target, and held a first close on about $1.5 billion in January. The process slowed a bit after that, but is expected to pick back up following the proposed acquisition of Hertz, which would be a Fund VII portfolio company.
CD&R declined to comment on fund-raising, citing SEC restrictions, but a source close to the process says that the firm already has hit $3.5 billion, and could go as high as $4 billion before a final close occurs later this year. The source adds that the final close might already have happened had the Hertz deal been made a few months earlier.