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Market at a Glance: Fundraising rushes to the finish line

U.S.-based buyout and mezzanine fundraising continued its strong finish to 2018, adding more than $18 billion since the last issue of Buyouts. The YTD 2018 total now stands at more than $227 billion and surpassed its YTD 2017 total by $12 billion, or 5.6 percent.

Large funds were to thank for the surge. Siris Capital Group raised more than $3 billion for its fourth flagship. The fund is targeting $3.5 billion and will focus on high technology.

Ridgemont Equity Partners closed its third flagship at more than $1.6 billion, exceeding its original target of $1.25 billion.

JMI Equity closed its ninth growth equity fund at $1.2 billion. The fund will continue the firm’s focus on software.

Energy Spectrum Partners raised more than $727.3 million for its eighth flagship. The fund is targeting $1.3 billion.

Mid-market funds also helped. Windjammer’s fifth PE fund raised more than its initial $800 million target, closing at $870 million.

Dealmaking kept its strong pace. It added more than $8 billion to the YTD 2018 total, which now stands at more than $286 billion.

Three deals crossed the billion-dollar mark.

The largest deal was the $3.5 billion acquisition of Fimei SpA, a Milan maker of pharmaceutical preparation, by a special purpose vehicle led by CVC Capital Partners. The vehicle also included PSP Investment and StepStone Group.

Second was Roark Capital Management’s acquisition of Sonic Corp fast-food restaurants for $2.2 billion.

Third largest was Bain Capital‘s acquisition of Ensure Group, a Reigate, U.K., provider of motor and home insurance. Bain purchased the company through a vehicle named Blue (BC) Bidco Ltd from Toscafund Asset Management for $1.5 billion. Upon completion, Ensure will be delisted from the London Stock Exchange.

 

Additional Data

IPO REGISTRATIONS BY SELECT PRIVATE EQUITY-BACKED COMPANIES IN 2017-18 YTD

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