Last year, Buyouts was first to report that the New York-based firm was in the market to raise a new subordinated debt vehicle that could grow to as large as $18 billion. The fund eclipses the $9.25 billion mezzanine fund that the firm raised in 2006.
The California Public Employees’ Retirement System helped the 2008 fund-raising total as it recently made several commitments, including $300 million to the third fund of Oak Hill Capital Management Partners, which has raised at least $2.4 billion for fund III.
Meanwhile, the pace of completed deals has remained fairly slow in the early goings of 2008 as U.S.-based LBO shops completed a dozen transactions during the week of Feb. 13, according to Thomson Financial (publisher of Buyouts).
Only two deals closed last week carried disclosed values, for a combined tally of $3 billion. Nearly all of the week’s volume was generated by Hellman & Friedman’s LBO of Goodman Global Inc., a maker and wholesaler of heating, ventilation, air conditioning and related products, for about $2.5 billion. Hellman & Friedman paid $25.60 per share for Goodman with its senior debt arranged by Barclays Capital, Calyon, GE Commercial Finance and GSO Capital Partners. GSO, acquired by The Blackstone Group last month, provided $500 million in senior subordinated financing.
Also during the week, Avista Capital Holdings paid $425 million to acquire Boston Scientific Corp.’s fluid management and venous access businesses. Year-to-date disclosed deal volume has crept up to a little more than $31 billion.