Research

Market at a glance – Megafunds bloom in April

May 1 2017

U.S.-based buyout and mezzanine fundraising erupted over the past two weeks. Since Buyouts last went to press, the yearly total escalated by $29.7 billion. So far, 2017 has seen $82.3 billion raised and leads this time a year ago by $29 billion, or 54.3 percent.

At the top, Silver Lake wrapped up the year’s largest fund so far. Silver Lake Partners V collected $15 billion, going 20 percent beyond the $12.5 billion target. The firm’s fifth flagship centers on technology and will pursue large-scale investments in the sector.

Clayton Dubilier & Rice reached final close for its latest flagship as well, the largest in the firm’s history. Amid high demand, Clayton Dubilier & Rice Fund X ended with $10 billion in commitments.

TZP Group and Riverside Co held final closes on smaller funds. TZP, an investor in business and consumer services, beat the $450 million target for its third fund, ending on $565 million. Riverside Strategic Capital Fund, the firm’s first non-control investment vehicle, rolled past a $350 million target and settled at $418 million.

Deal-making in the past two weeks was more modest, with the 2017 total growing $3.2 billion. The yearly aggregate now sits at $57.5 billion, trailing 2016’s total by $4.3 billion, or 6.9 percent.

Of the deals with disclosed value, a pair surpassed the billion-dollar plateau. Warburg Pincus was behind the largest deal. The firm bought out Singapore-based financial adviser ARA Asset Management for about $1.3 billion.

ArcLight Capital Partners followed with its acquisition of the hydroelectric generation assets of TransCanada Corp, the Calgary builder of energy infrastructure, for $1.1 billion.