US buyouts powerhouse
The fund is still larger than the €4.5bn European vehicle it raised in October 2005.
The failure to close on €8bn is being blamed on the slow-down of the LBO market in the wake of the sub-prime crisis, as well as the weakness of the dollar compared to the euro.
LPs are increasingly interested in mid-market and growth capital funds, as shown by the success of both Summit this month and Advent International and Warburg Pincus last. Advent raised €6.6bn to invest in businesses with enterprise values between €200m and €1bn, and Warburg raised €9.6bn to focus on early-stage, growth and late-stage companies.
KKR closed a global fund on US$17.6bn at the end of 2007. Apax Partner also raised a fund for global investment on €11bn. Blackstone is reported to be marketing a new US$20bn global fund, with UK firm CVC Capital Partners also rumoured to be raising a new fund.