The Chapel Hill, N.C.-based investment adviser and fund of funds manager has raked in between $125 million and $150 million for Morgan Creek Partners III. Fund II was earmarked for a mix of buyout funds (30%), real estate, energy and venture capital funds, according to a source familiar with the effort.
On the buyout side of the ledger, Morgan Creek favors shops that focus on the small end of the middle market, such as
Expect half of the new fund’s capital to be deployed to invest in assets outside the United States. The firm recently expanded into Asia and has two principals, Managing Directors Nirav Kachalia and Jason Zhang, on the ground in China. —Joshua Payne
PrivateEquityOnline first reported the news kast week, and we’ve since confirmed it with a KKR spokesman. KKR also is in the process of raising €8 billion for its third dedicated European fund. Most of the new fund — called KKR 2006 Fund Private Investors – is earmarked for North American investments, but some will be opportunistically disbursed elsewhere.
Blackstone postpones buyout fund
Blame here goes to the tortoise-slow deal environment, as Blackstone’s current fund has more dry powder than the firm had expected to have by the end of the first quarter this year. Blackstone did put more money to work in the fourth quarter last year than in any other quarter in the firm’s history (thanks largely to its $20-billion purchase of Hilton Hotels), but it’s been slow going ever since.
It’s also worth noting that this fund-raising drive is expected to mirror past Blackstone efforts, which means no definitive target or final close date. Yes, the fund has a $20 billion cover price, but the firm’s current fund closed on $22 billion in mid-2007, after coming to market in 2004 with a $10 billion target.
MBK targets $3B for fund II
Seoul, South Korea-based
Cadent Energy powers up with $473M second fund
Fund II was targeted at $375 million. The firm raised $220 million for its inaugural fund in 2002.
Founded in 2003, Cadent makes control and influential minority investments in small to medium sized energy and related companies primarily based in North America.