PE fund briefs, week of Nov. 12, 2007

KRG raises nearly $2B

KRG Capital Partners
has closed its fourth fund with $1.96 billion in capital commitments. The Denver-based firm began fund-raising in May with a $1.25 billion target, and will continue to acquire profitable middle-market companies that can benefit from a “buy and build” investment strategy.

HarbourVest to go public in Europe

HarbourVest Partners, a Boston-based fund of funds manager, plans to float a newly-formed closed-end investment vehicle on the Euronext Amsterdam.

The firm plans to raise $400 million for HarbourVest Global Private Equity.

In addition to the new fund to be raised, a number of existing HarbourVest limited partners are contributing their interests in existing HarbourVest funds to the company in exchange for shares that will be subject to a lock-up. The firm says that it expects to have a market cap of about $830 million as result of the offering.

Blackstone sets target

The Blackstone Group has set a $20 billion target for its next private equity fund, according to LBO Wire.

CDC commits $20M more to South Africa

CDC Group, the U.K. government-backed private equity emerging markets fund of funds investor, has made a pair of $10 million commitments to private equity funds focused on opportunities in South Africa.

The fund of funds has invested $10 million in Medu Capital Fund II, the second fund raised by Medu Capital, a Johannesburg-based private equity firm which is owned and run by a management team with strong experience of making Black Economic Empowerment-related investments in South Africa. Medu Capital currently has $120 million under management.

CDC has also committed $10 million to Horizon Equity III, a new fund raised by Horizon Equity Partners (Pty) Ltd., which plans to invest in small to mid-market transactions in South Africa.

Including these latest two investments, CDC’s recent commitments take its total commitment to private equity funds in South Africa to over $130 million.

“We see an interesting opportunity for mid market focused funds on the South African market currently given a continued shortage of financing options among local SMEs in combination with the strong growth of the economy,” says Sven Söderblom, portfolio director at the CDC.

Carousel closes third fund

Carousel Capital announced last week the final closing of its third buyout fund, Carousel Capital Partners III, with $210 million in commitments. It is Carousel’s largest fund to date. The firm now manages more than $500 million in assets.

With CCP III, Carousel will continue its focus on acquiring small, profitable companies based in the Southeastern United States. Since its inception in 1996, Carousel has invested in 24 companies, including Axium Healthcare Pharmacy, Express Oil Change, Meineke Car Care Centers and Simpson Performance Products.

The Charlotte, N.C.-based firm is led by Brian Bailey, Charles Grigg, Bill Hobbs, Jason Schmidly and Nelson Schwab.