Market wrap up, week of July 13, 2009

Buyout and mezzanine shops began the third quarter with a few hits on the fund-raising front.

For the week ending July 8, year-to-date fund-raising inched up to $37.6 billion. To put that into perspective, buyout funds collectively raised $264.1 billion for all of 2008.

The biggest fund-raising winner last week was The Carlyle Group, which secured $1.04 billion for Carlyle Asia Growth Partners IV LP. The Washington, D.C.-based shop will use the vehicle to invest in private growth companies in China, India, Korea and other parts of Asia.

Coming in second was New York-based Centerbridge Partners, which secured $850 million for Centerbridge Special Credit Partners LP, which has a $2 billion target. Park Hill is the fund’s placement agent. The pledges for the investment vehicle were made by 40 investors.

Just behind Centerbridge was Houston-based Kayne Anderson Capital Advisors, which held a final close on $820 million for its fifth fund. Kayne Anderson Capital Advisors V LP plans to focus on early to mid-stage oil and gas companies in North America. It usually makes investments of $20 million to $150 million.

Deal Flow

The number of LBO transactions during the end of the second quarter and the start of the new period totaled 18, bringing year-to-date deal volume to $7.8 billion. To put that into perspective, buyout shops collectively completed deals valued at $137 billion for all of 2008.

The five deals with disclosed financial terms had a combined disclosed valuation of about $738.5 million.

The largest deal that occurred from June 24 and July 7 was Advent International Corp.’s acquisition of a 51% stake in Fifth Third Bancorp’s Fifth Third Processing Solutions LLC unit. Advent paid $561 million to purchase the Cincinnati, Ohio-based provider of payment processing services.

Coming in second was Bain Capital’s Domino’s Pizza Group Ltd.’s $67 million purchase of Dresdner Kleinwort Leasing March 2 Ltd., which does payment processing. At No. 3 was Lime Rock Partners’ $49.7 million purchase of Allis-Chalmers Energy Inc., which provides oil and natural gas equipment and drilling services.At No. 4 was LLR Partners’ $41.1 million buyout of I-Many Inc., which develops contract management software.And, finally, Tailwind Capital Partners’ Archway Marketing Services paid $19.6 million for the supply chain management division of Resolve Business Outsourcing Income Fund. —Eamon Beltran