U.S.-based buyout and mezzanine fundraising slowed its 2019 pace. Since the last issue of Buyouts, fundraising added only $4.3 billion to its YTD total. The 2019 YTD total now stands at $74 billion, nearly $25 billion more than its 2018 YTD total.
Arcline Investment Management, founded by ex-Golden Gate Capital executive Rajeev Amara, was the only firm to raise more than $1 billion. The firm’s debut fund closed on $1.5 billion, outraising its initial target.
Grain Communications raised $768 million for its sophomore opportunity fund. The fund targets $899 million.
Tower Arch Capital closed its sophomore fund on its hard cap of $450 million. Shannon Advisors was placement agent.
Juggernaut Capital Partners raised $408 million for its fourth flagship, which targets $450 million. The fund already outraised its previous flagship, which held a final close of $380 million in 2016.
New Mountain Capital added $263 million to its net lease fund, which now has more than $450 million raised.
Dealmaking kept its modest pace, adding $5.3 billion to the YTD 2019 total, which is now at $49 billion, $20 billion more than its 2018 YTD total. Two deals crossed the billion-dollar mark.
The largest deal was the acquisition of Tallgrass Energy. An group composed of Enagas SA, Blackstone and GIC paid $3.3 billion to Kelso & Co for the provider of pipeline transportation services for natural gas.
The second largest deal was Centerbridge’s $1.3 billion buyout of Civitas, the Boston provider of home and community health services, previously owned by Vestar Capital Partners.