Within the next month, the Chicago-based firm plans to close on $5 billion for Madison Dearborn Partners VI, says the source. The LBO shop will likely keep the fund open through the end of the third quarter to accommodate several long-standing limited partners that must wait a few months before they can commit to the new vehicle.
Earlier this month, the LBO shop held a first close on $3 billion. Madison Dearborn Partners started fund-raising in November. Madison Dearborn Partners closed on its fifth fund, a $6.5 billion pool, only two years ago. The biggest commitment from that fund—to cover the firm’s contribution to the $52 billion take-private of Canadian phone company BCE—is still pending.
In addition, the firm has entered a choppy fund-raising market. Public pension funds, the ones that can afford to make big-dollar commitments to mega-firms, are butting up against their allocation ceilings. Many public LPs are seeing the value of their overall portfolio, including public equities and fixed-income holdings, decrease in the bear market, shrinking the size of their allocation to alternative assets, which is typically set as a static percentage of the entire portfolio. —Jeremy Harrell
Morgan Stanley launches Indian PE
TD scores $215M
CVC captures $4.1B
The Beijing-based private equity firm invests in established companies in China, South Korea, Australia, Japan and Singapore.
It is CVC’s third Asian fund, and the biggest fund ever raised in the Asia Pacific region, underlining continued appetite for investment opportunities, the U.K.-based firm said in a statement.
Hudson Ferry delays fund-raising
The New York-based firm plans to resume fund-raising once it has completed a few new deals.