Market wrap up: Lone Star lifts fund-raising efforts

Year-to-date, buyout and mezzanine firms have raised $232.3 billion in fresh capital.

Lone Star Funds made a couple of huge plays during the past two weeks that helped boost the fund-raising total. The Dallas-based firm raised $7.5 billion for Lone Star Fund VI, which had a $5 billion target. The firm raised $5 billion for fund V, which closed in 2004.

The firm also collected $2.5 billion for Lone Star Real Estate, which had a $1.5 billion goal.

In addition, the latest push was provided by other firms, such as Brazos Private Equity Partners, which closed Brazos Equity Fund III with more than $700 million in commitments. The fund, which had a $600 million target, will primarily focus on the manufacturing, consumer, health care, distribution and financial services sectors.

Also, Centerfield Capital Partners closed its Centerfield Capital Partners II mezzanine fund at $116 million. The fund was seeking $100 million.

Another mezzanine fund that closed was Darby Overseas Investments Ltd.’s Darby Brazil Mezzanine Fund at $197 million. The fund will invest in infrastructure projects in Brazil.

Deal activity

Deal flow so far in 2008 stands at about $107.6 billion.

Overall, there were 28 LBO deals during the past two weeks, according to Thomson Reuters (publisher of PE Week). The seven deals with reported prices had a combined value of $676.2 million.

The period’s largest transaction involved the acquisition of SSP Holdings PLC, a U.K.-based provider of computer and software consulting services, by H&F Sensor Bidco Ltd. for $392 million. H&F Sensor was formed for the purpose of making an acquisition by funds advised by Hellman & Friedman.