Madison Dearborn aims to close fund in April

Madison Dearborn is planning a final close in April for Madison Dearborn Capital Partners VI despite being well below its target, according to a source familiar with the situation.

The Chicago-based buyout firm entered the market in 2007, seeking $10 billion. The target was lowered to $7.5 billion in 2008, when Madison Dearborn had gathered $4 billion in commitments. The firm raised $6.5 billion for its previous fund, which closed in 2006.

No new money has reportedly rolled in the door since then, and the firm is scheduling its final close next month, the source said. There is still a small possibility the firm could gather a few more commitments or get another extension.

During fund-raising, the firm lost David Mosher, a co-founder who focused on investor relations. In June 2009, Mosher retired and was replaced with Credit Suisse alum John Knutsen and David Pequet, who serve as the respective head of investor relations and vice president. Credit Suisse served as the firm’s placement agent for its sixth fund.

Madison Dearborn has invested $540 million from the new fund, acquiring Weather Investments, an Italian telecom company, and NextG Networks, a San Jose, Calif.-based provider of wireless antenna systems.

Last week the firm exited its investment in Tuesday Morning Corp., a retailer it acquired in 1997. The firm took Tuesday Morning public in 1999 and sold its final shares as part of the liquidation of Madison Dearborn’s second fund, a 1996 vintage. —Erin Griffith