Firms & Funds

Market at a glance – October’s fundraising surge continues

November 7 2016

The U.S.-based buyout and mezzanine space saw a deluge of fundraising in October. Over the past two weeks, $12.6 billion was added, bringing the year’s total to $158.9 billion. The wave of new capital helped close the gap to 2015’s high-octane pace, with the figure only $8.7 billion, or 5.2 percent, below a year earlier.

Oak Hill Advisors had the most noteworthy close of the period, wrapping up OHA Strategic Credit Fund II. The turnaround vehicle finished with $2.7 billion in commitments. Kayne Anderson Capital Advisors hit the $2 billion hard cap for its seventh energy fund, focusing on buyouts in North American upstream oil and gas.

While not yet finished, GSO Capital Partners surpassed its target and is near the hard cap on its third mezzanine fund. GSO Capital Opportunities Fund III has amassed $6.5 billion in commitments and expects to conclude the fund in Q4.

Returning to the fold is Landmark Partners. Less than two years after closing its predecessor, Landmark launched its 16th flagship fund seeking $4.7 billion. Also coming back to market is Avista Capital Partners with its fourth primary fund. The healthcare specialist set a fundraising goal of $750 million to $1 billion.

Deal-making was tepid, adding just $1.6 billion to its total over the past two weeks. This year’s aggregate sits at $126.2 billion; that’s $22.3 billion, or 15 percent, behind 2015’s deal efforts.

The largest deal with disclosed value was Frazier Healthcare Partners acquiring a 60 percent stake in Bravo CCHN Group Holdings, a provider of medical assessment services, for $537.5 million. Vista Equity Partners followed, buying software developer GovDelivery for $153 million.