The fund has received commitments from a host of LPs, including Adams Street Partners, Alpinvest Partners, Allianz Private Equity Partners, CPP, CDPQ, Citi, Gartmore Private Equity, Horsley Bridge, OMERS, Partners Group, Standard Life, TIAA-CREF and State of Oregon. It exceeded its original target of €3bn and even its €5bn hard cap.
One investor said: “Terra Firma has an exceptional track record of producing real economic value through investing in and transforming companies. We are delighted to have made a significant investment in its new fund.”
The firm is currently finalising the acquisition of UK music group EMI for £3.2bn, the money for which will come from TFCP III and its predecessor TFCP II, the 2002 fund which raised £2.5bn.
It is also close to selling Tank & Rast, the German motorway services operator. It paid Apax €1.1bn for the business in December 2004. Macquarie is reported to be one of the bidders, with offers of around €2.5bn tabled. The firm’s last exit was in the summer of 2006 when it sold WRG Holdings’ waste disposal business for £1.4bn to Fomento de Construcciones y Contratas, after it acquired parent company WRG Holdings in August 2003 before demerging the business, the other half of which is focused on renewable energy and still owned by Terra Firma.
In May the firm acquired a significant stake in Pegasus Aviation Finance Company, a US aircraft leasing company, in a €3.9bn buyout from US investment firm Oaktree Capital.