Madison Dearborn Finally Closing Fund Six

Firm: Madison Dearborn

Fund: Madison Dearborn Capital Partners VI LP

Target: $7.5 billion

Amount Raised: $4 billion

Placement Agent: Credit Suisse

After more than two years in the market, Madison Dearborn is approaching a final close on its sixth fund, despite being well below target. According to a source familiar with the situation, Madison Capital Partners VI LP will close with around $4 billion in commitments.

The firm entered the market in 2007, seeking $10 billion. That figure was lowered to $7.5 billion in 2008, when Madison Dearborn had gathered $4 billion in commitments. No new money has rolled in the door since then, and the firm is scheduling its final close for April. There is still a small possibility the Chicago-based buyout firm could gather a few more commitments or get another extension, but considering the lack of new commitments last year, it’s not likely.

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

Madison Dearborn has invested $540 million from the new fund, acquiring Weather Investments, an Italian telecom company, and NextG Networks, a California-based provider of wireless antenna systems. In February, 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. Tuesday Morning’s shares quintupled in value in the past year, according to Dow Jones.