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— Deals —
 PE fundraising continues, with secondaries particularly hot, while VC fundraising has slowed considerably, though glimmers of hope shine through. Kicking off June: PE firms holding $400B in dry powder. Here's some context.
October 1: San Francisco private equity firm Hellman & Friedman closed its latest fund, Hellman & Friedman Capital Partners VII with $8.8 billion. - George White September 29: Quantum Energy Partners closed on $2.5 billion for a new fund that will invest in startup or private oil and gas companies in the U.S. and Canada. - Claire Poole September 9: Charlesbank Capital Partners LLC wrapped up raising its latest private equity investment vehicle at $1.5 billion. - David Carey September 8: Turnaround investment firm KPS Capital Partners LP has closed on an additional $800 million to top off its $1.2 billion third fund raised in 2007. - Vyvyan Tenorio August 21 - Kohlberg Kravis Roberts & Co. confirms the closing of an annex fund raised to supplement investments in its European II and Millennium funds. The fund did not comment on the amount of capital raised, but a source said it was around €400 million ($569 million). - Jonathan Braude August 13 - J.P. Morgan Private Equity Ltd., a fund formed to buy private equity secondary portfolios, raised over $75 million from new and old shareholders in a series of closings in July and August. - Jonathan Braude August 12 - TA Associates closed a $4 billion vehicle after only 6 months of fundraising. The new fund, TA XI LP, will target middle market companies. - David Carey July 27 - Matrix Partners closed the second largest venture capital fund of 2009, raising $600 million. - Mary Kathleen Flynn July 24 - Canadian merchant bank Clairvest Group Inc. held a C$200 million ($182.5 million) first closing on its new private equity pool, Clairvest Equity Partners IV LP. The firm has a target of C$500 million. - Christine Idzelis July 22 - Falling just short of its $1 billion target, Chicago buyout firm Wind Point Partners LLC closed its seventh vehicle with $915 million. - Vyvyan Tenorio July 15 - Middle market buyout firm Huntsman Gay Global Capital closes its initial fund with $1.1 billion in commitments. - David Carey July 10 - Finnish LBO shop CapMan plc closed its €138 million ($193 million) Public Market Fund in July, its first aimed at investments in public companies. - Vyvyan Tenorio July 7 - Secondary market-focused Pomona Capital closed its seventh vehicle with $1.3 billion, surpassing its target by 30%. - Vyvyan Tenorio July 6 - Internet entrepreneur Marc Andreessen and business partner Ben Horowitz new VC firm Andreessen Horowitz with a $300 million fund. - Mary Kathleen Flynn July 2 - Kayne Anderson Capital Advisors LP closed an $820 million fund targeting the North American oil and gas sector. - Christine Idzelis June 24 - Mount Kellett Capital Management held the $2.5 billion final closing of its inaugural private equity fund. Founded by Goldman Sachs Group Inc. (NYSE:GS) alum Mark McGoldrick, nicknamed Goldfinger for his prowess at distressed investing, the vehicle will seek opportunities in Asia. - George White
Trendwise, May 28: Funds-of-funds keep going strong; May 27: CVCA foresees buyout recovery in 2nd half; and May 20: U.S. PE funds look to China for money.
May 15: Energy Investors aims for $2B fund: The firm's previous vehicle, which closed in 2007, amounted to $1.35 billion. - Christine Idzelis May 12: New venture funds focus on early stage May 8: 3i taps investors: The private equity group's heavily discounted rights issue aims to slash debt and restore dealmaking power. - Jonathan Braude May 6: KPG Ventures' Dave Hills on new fund: KPG Ventures' Dave Hills talks about raising the firm's second round last fall and investing in startups now. - Mary Kathleen Flynn PE IN APRIL PE fundraising ends April strong: As
April closed, private equity firms were hard at work padding their
already robust fundraising numbers, adding more than $6.4 billion to
their capital under management. April 30: A brand and a plan: Blackstone plans a private capital fundraising out of its technology investment banking group. And April 27: 3i buys ... 3i: The listed private equity firm buys 3i Quoted Private Equity plc (LSE:QPE), a unit it set up in 2007 to take minority stakes in other public companies. April 21: Energy-focused First Reserve Corp. closed the largest fund thus in 2009, raising $9 billion for its Fund XII in about 10 months. Secondary funds continue to be a favorite of limited partners as Boston private equity firm HarbourVest Partners LLC announced the final closing of its oversubscribed secondary fund -- Dover Street VII LP -- with $2.9 billion on April 24. The new fund will invest venture capital, leveraged buyouts and other private equity assets, and has already acquired bankrupt bank Lehman Brothers Holdings Inc.'s limited partner interests in Lehman Brothers Venture Partners, the firm's venture fund manager. LBVP has been spun out of Lehman and has rebranded as Tenaya Capital. Plenty of money has already flowed into secondary investment vehicles in 2009. Goldman, Sachs & Co. wrapped up the largest secondary fund ever, named GS Vintage Fund V, with $5.5 billion on April 13; Goldman's previous four secondaries totaled about $6 billion. New York fund-of-funds investment manager Siguler Guff & Co. LLC is also angling to stake out its claim in the secondary market with a $2.4 billion pool that will invest in private equity funds focused on distressed securities. The firm's third distressed investment vehicle has already taken a stake in a fund controlled by restructuring veteran Wilbur L. Ross' W.L. Ross & Co. LLC. Pegasus Capital Advisors LP and Deerfield Capital Corp., a Chicago alternative asset manager, have pledged $90 million to a new venture that will buy senior corporate loans in the secondary market. Pegasus and Deerfield pledged $75 million and $15 million, respectively, to the venture. And London-based Vision Capital LLP gathered up €680 million ($876 million) for Vision Capital Partners VII LP in February 2009 to buy portfolios of companies from private equity houses, financial institutions and corporations looking to divest noncore subsidiaries. Although the volume of large buyouts is way down, fundraising targeting specific sectors continues apace. Energy-focused First Reserve Corp. closed a $9 billion buyout fund -- First Reserve's Fund XII -- on , although the vehicle fell slightly short of target, according to a source. However, the firm was still able to raise $1.2 billion more than its previous vehicle, the $7.8 billion Fund XI, which closed in 2006. Meanwhile, London's Charterhouse Capital Partners LLP defied an exceptionally bleak environment for private equity fundraising with the April 3 announcement of a €4 billion ($5.4 billion) megafund, although the climate did put a dent in the firm's plans, as the total was widely reported to be a third less than the original target. Pine Brook Road Partners LLC also secured $1.43 billion in capital commitments for its first fund on April 7, no small feat for a first-time investment vehicle in a difficult fund-raising environment. VC IN APRIL On the venture capital side, fundraising has also slowed down dramatically, but there are rays of hope. With a long record of exits from its prior vehicles, Trinity Ventures confirmed the oversubscribed final closing of its latest fund, Trinity Ventures X, on April 23, with $300 million. The Menlo Park, Calif., firm will continue to target early-stage startups in digital media and Internet services. Trinity has backed Bix (acquired by Yahoo! Inc.), Modulus Video (acquired by Motorola Inc.), Photobucket (acquired by News Corp.) and Speedera Networks (acquired by Akamai Technologies Inc.), among others. DFJ Frontier closed its second seed-stage venture capital fund with $55.4 million. DFJ Frontier LP II has already backed
several startups, including publishing company Boom! Studios and video search
company Delve Networks. PE IN MARCH Bucking a stingy fundraising climate, Odyssey Investment Partners LLC closed its fourth fund with $1.5 billion on March 10. The new fund, Odyssey Investment Partners Fund IV LP, is double the size of the firm's 2005 third fund and topped by its original target by $500 million. And on March 16, Thoma Bravo LLC finished with $822.5 million in commitments for its latest LBO fund Thoma Bravo Fund IX LP, which was $57.5 million larger than the firm's 2006 predecessor fund. Meanwhile buyout giant Carlyle Group announced the closing of its second vehicle dedicated to mezzanine investments with $553 million on March 4. The Carlyle Group extended its global reach on March 10 with a $500 million fund that will invest in the Middle East and North Africa, following other financial sponsors such as Kohlberg Kravis Roberts & Co. and Investcorp into the so-called MENA region. Carlyle's vehicle will target companies in the energy, financial services, healthcare, industrial, infrastructure, technology and transportation. In the middle market, where dealmaking appears to be more robust, Vicente Capital Partners closed its third fund with $165 million on March 17, surpassing its target by $15 million. The Los Angeles firm focuses on LBOs in the lower middle market. VC IN MARCH August Capital Management LLC wrapped up the largest VC fund of the first quarter when its closed on $650 million in commitments for its balanced-stage fund, August Capital V LP, beating its last fundraising, in 2005, by $100 million. Once again, a solid track record was integral to the firm's fundraising prowess, as August Capital has previously backed companies such as Symantec Corp., Compaq Computer Corp. and Skype Technologies SA. Element Partners plans to do its part to save the earth (and make a nice profit besides) with the March 9 closing of a $486 million growth equity fund dedicated to investing in cleantech. Element Partners II LP gives the firm more than $800 million of assets across three investment pools that target alternative energy, green building materials and water treatment. Internet search giant Google Inc. also announced Google Ventures, which it has bankrolled with a reported $100 million in spending money. Operating separately from its parent, Google Ventures will seek investment opportunities that would maximize returns rather than focusing on companies that fit just with the company's strategy. PE IN FEBRUARY LBO giant TPG padded its $1 billion distressed credit fund with another $300
million in capital to protect against losses on leveraged loans it purchased at
the beginning of the credit crisis. The vehicle, dubbed TPG-TAC, was created in
2007 to invest in bank loans that were trading at discounts due to volatile
credit markets but were expected to return to par in a short period of time. - George White Jan. 15: "Goldfinger" Mark McGoldrick has raised a $1.5 billion fund for investments in Asia, Reuters reports. Dec. 8: CCMP Asia rebrands itself and raises a $1.2 billion fund. Nov. 24: Oaktree Capital Management LP closed on a $2.1 billion European fund for distressed buyouts. Nov. 10: TowerBrook Capital Partners LP closed a $2.75 billion investment fund and Nov. 7: Cerberus Capital Management LP has raised a $2 billion secondaries fund to buy loans cheaply. Through 2008, firms unveiled vehicles of all sizes and stages, targeting various sectors and regions. From middle-market buyouts to distressed investments to growth capital in Asia, fundraising goes on ... even in uncertain dealmaking times. In late September, Bloomberg noted PE fundraising was surging as investors were piling into distressed investment vehicles, with $33 billion going toward such funds by July 1, White wrote. SHAKING THE LP MONEY TREE
Carlyle Group In mid-October, Goldman, Sachs & Co. closed on a $10.5 billion loan fund to back LBOs and Blackstone Group LP ran into fundraising trouble, sources told The Deal. TPG is expected to zero in on $30 billion in 2008, having closed on $20 billion for its primary LBO fund in early September and according to the
Wall Street Journal, an additional $10 billion going toward a financial
services investment vehicle ($6 billion) and an Asia-focused fund ($4
billion), White wrote Sept. 8. Indeed, a surge kicked off September. Beverly Hills-based Platinum raised a $2.8 billion vehicle, it said Sept. 3. "The firm buys mostly troubled businesses or divisions of companies that are in need of a restructuring or turnaround," The Deal's Cheryl Meyer pointed out. Water Street Healthcare Partners Morgan Stanley Altor Equity Partners Madison Dearborn Partners LLC Kohlberg Kravis Roberts & Co. Closing out July, LLR Equity raised an $800 million midmarket investment vehicle. Solamere Capital Tagg Romney, the oldest son of Massachusetts Governor Mitt Romney, and Spencer Zwick, the elder Romney's former national finance director, are said to be raising their first vehicle, a $200 million fund for private equity investments, according to PEhub. It's familiar territory for the Romneys; Mitt co-founded Bain Capital LLC. GSO Partners Pfingsten Partners LLC European firm PAI partners capped an $8.3 billion vehicle, it said in early May. Warburg Pincus Warburg Pincus was April 22 the latest private equity firm to go big -- the buyout shop announced closing its 10th fund, a $15 billion vehicle that exceeded by $3 billion its initial target. Europe's Advent International revealed April 7 a €6.6 billion ($10.4 billion) fund, which it touts as the largest midmarket fund globally. Ten days later, it revealed the final close of its €1 billion Central and Eastern European fund, which far exceeded its €750 million target. Darwin Private Equity LLP Darwin Private Equity, a lower midmarket fund that was set up by Permira Advisers LLP and CVC Capital Partners vets, held the third close of its inaugural fund April 10 with £207 million ($409 million). The final close should come within months. Kohlberg Kravis Roberts & Co. Kicking off May, KKR unveiled a green fund and a partnership with the Environmental Defense Fund. The news came about a month after KKR rounded out March closing its last vehicle at $17.6 billion. Welsh, Carson, Anderson & Stowe Rounding out the week of March 17, White also pointed out Kohlberg & Co. And Kohlberg & Co. closed its sixth middle-market vehicle with $1.5 billion March 18. Bain Capital LLC Al Gore's Generation Investment Management Ltd. Levine Leichtman Capital Partners SFW Capital Partners LLC New Mountain Capital LLC Silver Lake HitecVision Private Equity AS TPG Capital Lyceum Capital Investcorp Technology Partners UBS The Swiss investment bank said its asset management unit raised $1.5 billion for an International Infrastructure Fund. IDFC Private Equity Co. IDFC closed out May with plans to raise a third fund targeting Indian infrastructure deals, with $700 million, Bloomberg reported. Morgan Stanley Global Infrastructure Partners Ltd. Axis Private Equity Credit Agricole Private Equity 3i Group plc Goldman, Sachs & Co. and Citigroup Inc. are also targeting multibillion dollar infrastructure vehicles, according to reports -- Goldman's being $7.5 billion and Citi's $5 billion. ICICI Bank Ltd.
Some firms are looking east, away from the U.S. and European markets given their unease, toward a wealth of opportunities in Asia. Darby Overseas Investments Ltd. Ic2 Capital LLP Rabobank Group Reliance Capital Donald Trump Jr. Ignition China
Baring Private Equity Asia
CVC Capital Partners J.P. Morgan Private Equity
Blue Ridge Capital Carlyle Group Orchid Asia Group Management Ltd. Goldman, Sachs & Co. MIDDLE EAST EMPHASIS Islamic Buyout Fund Ithmar Capital DISTRESSED OPPORTUNITIES JC Flowers & Co. LLC The buyout shop was said in mid-August to be raising a $2 billion European distressed debt fund, on top of $2.3 billion which CalPERS reallocated to three Apollo distressed debt funds, White wrote, citing a Bloomberg report. Third Avenue Management LLC Goldman, Sachs & Co. Monarch Alternative Capital Cerberus Capital Management LP Oaktree Capital Management Carlyle Group
Wilbur Ross, Invesco Ltd.
Roark Capital Group VCs CONCUR Baird Venture Partners InterWest Partners Madrona Venture Group RockPort Capital Partners Canopy Ventures Lightspeed Venture Partners Kleiner Perkins Caulfield & Byers Foundation Capital CMEA Ventures Helion Venture Partners, an India-focused VC firm, has closed its second vehicle with $210 million, little more than a year after its first vehicle closed with $140 million. The firm also plans to broaden its sector focus, expanding into consumer services, where it already invests in areas like retail and financial services, according to reports. Union Square Ventures Meanwhile, Union Square Ventures said on its blog March 5 it had closed its second fund with $165 million. The firm focuses on New York IT startups. Altira Group LLC .406 Ventures Avalon Ventures Clarus Ventures LLC Canaan Partners Crosslink Capital Index Ventures Wellington Partners THE BREAK-UP The news is not all good. Some firms are calling it splitsville. Pequot Capital Management Inc. Sevin Rosen Funds Visit the complete Dealwatch Archive |
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