U.S.-based buyout and mezzanine fundraising has surpassed last year’s lofty total, thanks in part to some big funds holding closings in the past few weeks.
Madison Dearborn held a first close of $3 billion on its seventh flagship fund, which has a $3.75 billion target and a $4 billion hard cap. Also securing $3 billion was Bain Capital for Bain Capital Asia Fund III. That beat its target by $500 million. Likewise, TSG Consumer Partners beat its target by $500 million, wrapping up TSG 7 with $2.5 billion in commitments. Due to a flood in demand, Searchlight Capital Partners raised the hard cap on its sophomore fund before closing on $1.9 billion.
Carnelian Energy Capital and TC Growth Partners both met success after setting sail on their maiden voyages in the fundraising seas. Carnelian closed its debut fund at its $400 million hard cap to invest in the North American oilfield sector. TC Growth, a spin-out from Trident Capital, has raised $200 million on its way towards its $300 million goal. In a similar vein, Mainsail Partners, Saw Mill Capital and Ocean Avenue Capital Partners opened new funds. Mainsail Partners’s fourth growth equity vehicle has targeted $325 million; Saw Mill Capital’s second buyout fund is aiming for $300 million; and Ocean Avenue Capital has set a $250 million target for its third buyout pool.
As for completed deals yearly volume grew by about $15 billion since Buyouts last went to press. Of the deals with disclosed values, the largest was a real estate transaction with the Blackstone Group. Blackstone acquired Strategic Hotels & Resorts Inc, a Chicago-based real estate investment trust, for just under $5.6 billion. In another sizable deal, department store operator Belk Inc was acquired by Sycamore Partners for nearly $2.7 billion. Meantime, Siris Capital Group acquired software developer Premiere Global Services Inc for $976.3 million.
(Correction: TSG7 was misspelled in the original version of this article.)