Slow and steady buyout fund-raising efforts reach nearly $64B

As the first quarter wound down, fund-raising continued to lurch forward at a slow, but steady pace.Clayton Dubilier & Rice secured about $2 billion for its eighth fund. The amount represents a portion of fund VIII’s $7.5 billion target. The New York-based firm closed its most recent fund in 2006 at $4 billion, but later added a $550 million co-investment vehicle.

There were other efforts that contributed to the year-to-date total’s growth, which is now just shy of $64 billion.

Bain Capital

raised about $1.7 billion for Bain Capital X co-investment fund, according to a regulatory Form D filing. Chicago Growth Partners also closed its second fund, CGP II, at $500 million.

In addition, DLJ South American Partners closed its debut fund at $300 million. The firm is a joint venture between Credit Suisse’s Alternative Investments group and an investment team co-led by Carlos Garcia and Marcelo Medeiros. Garcia previously headed South American investments for DLJ Merchant Banking Partners. Medeiros is Brazil Private Equity Fund’s former manager.

Completed Deals

LBO shops completed eight transactions between March 26 and April 2. There were no billion-dollar deals and the five that had disclosed prices had a combined total of just over $880 million. Almost half of this was from Dubai Aerospace Enterprise’s sale of its Landmark Aviation business to an investor group that is comprised of GTCR Golder Rauner and Encore FBO. The deal was valued at $435 million.

The second largest deal was Visant Corp.’s merger with Phoenix Color Corp. for $219 million in cash. Phoenix Color will operate as a wholly owned unit of Visant, which is a portfolio company of both Kohlberg Kravis Roberts & Co. and DLJ Merchant Banking Partners.

Year-to-date deal volume wobbled along to about $39.4 billion. —Eamon Beltran


In the “Market At A Glance” article in the March 17 issue of PE Week, we incorrectly reported the status of two funds being raised by Norwest Equity Partners. Norwest received a $1.2 billion commitment for Norwest Equity Partners IX and a $500 million commitment for Norwest Mezzanine Partners III. Both funds remain open and are expected to close during the second or third quarter this year.