THE ANNUAL REVIEW 2010 - PEI Media

private equity annual review 2010 pa g e 73
f u n d r a i s i n g
In the money
A number of firms managed to shrug off the fundraising malaise and hold significant
fund closes during 2010, including…
Sterling Group Partners III – $820 million
The Sterling Group’s third fund is focused on investments
in mid-market companies in manufacturing,
industrial services and distribution. The Houstonbased
firm exceeded its $600 million target and took
10 months to raise the fund. The firm used Lazard
Freres as placement agent for the fundraising, and
added 10 new limited partners to its roster.
Carlyle Global Financial Services Partners
– $1.1 billion
The Carlyle Group began raising its financial services
fund in May 2008, when it invested $75 million
in Boston Private Financial, a wealth management
company. Led by Olivier Sarkozy, half brother of
the French president, the fund also invested $550
million in Bank of NT Butterfield, and joined an
investment consortium that included The Blackstone
Group in the $900 million buyout of Florida-based
BankUnited.
Advent Latin American Private Equity Fund
V – $1.65 billion
Advent’s fifth Latin American vehicle took the title
for the region’s largest private equity fund raised.
The fund had initially gone to market in the fourth
quarter of 2008 with a $2 billion target, but given
the global economic situation the firm later agreed
with LPs that $1.5 billion was a more reasonable
target.
DRI Drug Royalty II – $700 million
Toronto-based DRI Capital beat its initial target
of $500 million for its second drug royalties fund,
which attracted capital from institutional investors
in the US, Canada, Europe, Australia and Asia.
Atlantic-Pacific was the fund’s placement agent.
DRI has more than $2 billion under management
that is uses to buy royalties from pharmaceutical
and biotechnology companies, research institutes
universities and inventors.
Madison Dearborn Capital Partners VI –
$4.1 billion
Madison Dearborn cut its initial target for Fund VI from
$10 billion to $7.5 billion in 2008, one year after the fund
came to market. In January 2010, the firm asked LPs for
a fundraising extension, as Fund VI was originally slated
to close in February 2010. Several large public pension
funds invested in Fund VI, including the Washington State
Investment Board, the New York State Teachers’ Retirement
System, the Maryland State Retirement and Pension
System and the Illinois State Board of Investment.
GSO Capital Solutions Fund – $3.2 billion
Blackstone Affiliate GSO Capital Partners’ second
debt-focused fund targets investments in rescue loans,
distressed-for-control and opportunistic transactions
like bankruptcy loans. In select cases, the fund will
invest alongside core Blackstone funds. Investors in
the fund include the San Diego County Employees’
Retirement Association, the California State Teachers’
Retirement System, the Illinois Teachers’ Retirement
System, the Korea Investment Corporation and the
Teachers’ Retirement System of Texas.
HIG Bayside Loan Opportunity Fund II –
$1.1 billion
US-headquartered Bayside Capital’s second debt vehicle,
which originally had a target size of $1 billion,
invests in non-control loan obligations of stressed
and distressed companies in the US and Europe. The
fund has a slightly different strategy than the firm’s
previous distressed investment vehicle, which raised
$3 billion for control investments in 2008.
Pantheon Global Secondary Fund IV –
$3 billion
After almost two years of fundraising, Pantheon
closed its fourth global secondaries fund in October.
The $3 billion raised included a $300 million
separate account with the Ohio Public Employees’
Retirement System. The firm’s original target was
$3.75 billion, with a hard cap of $4.7 billion.
Newbury Equity Partners II – $1 billion
Auda International spinout Newbury Partners beat
its original target of $800 million for its second fund
focused on secondary investments. Credit Suisse
worked as placement agent for the fund, which
has more than 75 institutional investors from the
Americas, Europe, Asia and Australia.
EnCap Energy Capital Fund VIII – $1.2 billion
Texas-based energy fund manager EnCap Investments
in October raised $1.06 billion for its eighth
fund and another $140 million across two investment
vehicles affiliated with the fund. EnCap ultimately
went on to smash its $2.5 billion target and
close oversubscribed on its $3.5 billion hard cap
in February 2011.
Park Hill placed the fund and limited partners
in the fund include the Minnesota State Board of
Investment and the New Mexico Public Employees
Retirement System.
Bertram Growth Capital II – $500 million
US-based Bertram Capital held a final close on $500
million for its second growth capital fund in October.
The fund invests in mid-market companies in
sectors such as healthcare, manufacturing, technology
and business services industries.
Wellspring Capital Partners V – $1.2 billion
Wellspring’s fifth buyout fund’s $1.2 billion haul
was a record amount for the firm. The fund, which
was placed by Credit Suisse, came to market in April
2009 with an original target of $1.3 billion and had
collected around $900 million by August. Fund V
targets mid-market US companies in the consumer
products, manufacturing, retail, distribution and
business and consumer services industries.