Market wrap up: KKR annex fund pushes industry total to $42.2B

The fund-raising activities of Kohlberg Kravis Roberts & Co. and Gores Group have helped buyout firms and mezzanine shops to raise roughly $42.2 billion in commitments so far this year.

KKR completed the fund-raising effort for the annex of its KKR European Fund II vehicle. The annex fund raised about $569 million in capital commitments.

The firm was looking for between about $560 million and $1 billion to make follow-on investments, having exhausted the capital in its second European buyout fund, which holds such high-profile investments as pharmacy chain Alliance Boots and German broadcaster ProSienbenSat.1.

KKR raised about $9.4 billion for KKR European Fund III, which closed in 2007. Before that, KKR raised $5.4 billion for its second European fund in 2005.

Meanwhile, Los Angeles-based Gores Group raised $460 million for Gores Capital Partners III, as first reported by LBO Wire. Lazard Freres & Co. is serving as the placement agent for the Gores’ latest vehicle, which has a $1.5 billion target.

Gores Group acquires controlling interests in mature and growing businesses. It primarily focuses on the technology, telecommunications, business services and industrial sectors.

Deal Flow

(publisher of PE Week) tracked nine LBO deals during the past week. None of them reported financial terms so year-to-date deal volume remains at about $10.2 billion.

One of the past week’s deals involved Huntsman Gay Global Capital, which acquired an undisclosed majority stake in Grand Isle Shipyard Inc., which provides offshore oilfield maintenance services.

Welsh Carson Anderson & Stowe Co.’s Global Knowledge Inc. unit also acquired Nexient Learning Inc., a Toronto-based provider of training and consulting services.

Another recent transaction involved KKR’s First Data Corp. subsidiary. It purchased Cash Axcess Corp. from Mvelaserve Ltd. and Industrial Electronics Investment Ltd. Cash Axcess operates automated teller machines in South Africa. —Eamon Beltran