Market wrap up: Despite hurdles, some funds pull off fund-raising feats

Buyout and mezzanine firms are expected to face many hurdles this year with their fund-raising activity. But some firms have recently held closings and others are planning new vehicles in 2009.

Hispania Capital Partners, for example, has held a first close for Hispania Private Equity II at more than $105 million. The fund is targeted at between $150 million to $200 million (see story, page TK).

The Chicago-based firm, which invests in companies that provide goods and services to Hispanics in the U.S. and Puerto Rico, had a hand in helping buyout and mezzanine firms raise $727.7 million so far this year. The fund-raising total in 2008 was $262.5 billion.

Arlington Capital Partners has officially hit the ground for its Arlington Capital Partners III with a target of $750 million (see story, page 4).

In other fund-raising news, Dominus Capital held the initial close of its debut fund, Dominus Capital Fund I, at $250 million. It anticipates another interim close at $300 million during the first quarter. The fund has a $375 million target and a $500 million cap.

Deal activity

Thomson Reuters (publisher of PE Week) tracked 11 pending and completed control-stake transactions during the past week. The four with financial terms had a combined value of $474.9 million.

Manhattan Software Bidco Pty Ltd.’s tender offer for MYOB Ltd., a business management software developer, was the period’s largest transaction. The LBO deal has a rank value of about $276 million. Manhattan Software, which was formed by Archer Capital Pty Ltd. and HarbourVest Partners, declared its bid unconditional.

In 2008, 870 control-stake transactions were closed and those with financial terms had an aggregate value of $137 billion.