Buyout and mezzanine firms continue to flourish in the spring as they have raised more than $123 billion in year-to-date commitments.
Oaktree Capital Management was the most active fund-raiser during the past week. The Los Angeles-based firm raised $10.6 billion for OCM Opportunities Fund VIIb, which will invest in distressed debt opportunities worldwide. The most recent fund is three times larger that the previous fund, OCM Opportunities Fund VII, which the firm closed in 2007 at about $3.5 billion.
Also active recently was Pfingsten Partners, which closed its fourth fund with $525 million in commitments. Pfingsten Partners Fund IV, which was oversubscribed, was targeted at $400 million. The Chicago-based firm plans a diversified portfolio of about 20 investments in fund IV, with transaction values ranging from $15 million to $100 million. The fund is the largest fund in Pfingsten Partners’ 19-year history.
While fund-raising remains robust for buyout firms, the same is not the case for making deals.
Year-to-date deal volume remains at $51.2 billion.
The credit crunch, weak global economy and other industry pressures have made the industry nervous to participate. There were four control-stake deals completed by LBO firms during the past week and none had disclosed values, according to Thomson Reuters (publisher of PE Week).
Marwit Capital was one of the firms that made a play. Its Best Vinyl unit acquired Saddleback Vinyl Products Inc., which installs vinyl fencing and related products such as decks, patio covers and other outdoor related landscaping products.
Another was Lindsay Goldberg. The New York-based firm (formerly known as Lindsay Goldberg & Bessemer) acquired Atlantic Industrial Inc., which provides industrial services through its Atlantic Scaffolding and Atlantic Plant Services units. —Eamon Beltran