Market at a Glance: Fundraising makes strong end-of-year push

U.S.-based buyout and mezzanine fundraising surged since the last issue of Buyouts, adding more than $26.8 billion to the YTD 2018 total, which crossed the $200 billion threshold as the year comes to a close.

The 2018 fundraising surpassed its YTD 2017 total by $7.5 billion, or 3.4 percent.

One megafund in particular was responsible for the surge. Warburg Pincus held a first close for its latest flagship at $14 billion. The fund is already over its original target of $13.5 billion and is still open.

TSG Consumer Partners’ eighth flagship also helped, adding $3.8 billion. The total is aggregated across the fund and its parallel. TSG focuses on consumer products and services.

Main Post Partners, which also focuses on consumer products and services, closed its sophomore fund at its hard cap of $700 million, three months after launch.

Jordan Co added $455.7 million to its Resolute Fund IV, which now has more than $3.6 billion.

Luminate Capital closed its sophomore fund at $425 million. Luminate focuses on software and software-enabled services business in the middle market.

Deals disclosed continued its strong pace. It added $13 billion to the YTD 2018 total, which now stands at more than $86 million over its YTD 2017 total.

Six deals crossed the billion-dollar mark.

The largest deal was the $5 billion merger of LifePoint Health Inc with RCCH Healthcare Partners, a portfolio company of Apollo Global Management. The Brentwood, Tennessee-based company owns and operates hospitals.

The next largest disclosed deal was the acquisition of Mitel Networks Corp by an investor group lead by Searchlight Capital Partners for $2 billion. Located in Ottawa, Mitel manufactures, wholesales and develops enterprise and mobile communications equipment and software.

 

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