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Private Equity Briefcase

By Kelly Holman, IDD Magazine

April 29, 2008

PE Funds Still In Vogue

The financial-buyer transaction window may be virtually shut, but the private equity fundraising train doesn’t only show no signs of slowing down -- it appears to be picking up steam by all indications.

And, the credit crunch that’s hammered LBO borrowing has only fueled interest in another sort of fund. While neither the flavor of fund — its investment style if you will — nor the type of fund manager seem to matter much, distressed debt vehicles seem to be all the rage. Aurora Capital Group and Providence Equity Partners are raising their first distressed debt investment vehicles, sources told IDD, whereas the Carlyle Group just wrapped up the close of its $1.3 billion Carlyle Strategic Partners II fund, which has a broad mandate to invest in a variety of debt securities including senior bank term loans and public debt.

Separate from the distressed arena Kohlberg Kravis Roberts has reportedly rounded up €6 billion for its latest European fund, while Summit Partners received strong interest in its new European-focused fund with €1 billion of commitments from an investor base comprised of not just family offices or endowments but BP Investment Management, HarbourVest Partners and Irish National Pensions Reserve Fund. Summit also closed on $825 million for its fourth mezzanine fund, surpassing its previous $465 million sub-debt fund by a wide margin.

What does it mean?

Institutional investors are as bullish as ever on the alternative asset class, particularly when it concerns committing capital to established brand firms. Although the industry’s flavor of the month, and occasionally style, drift among certain firms, what is certain is that private equity is still a favored alternative investment choice among pension funds and institutional investors.

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1 Comments

sSQ0SH

Posted by: folcklord f | July 19, 2010 10:31 AM

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Kelly Holman

Kelly Holman is the assistant managing editor at Investment Dealers' Digest, where he writes about private equity and leveraged finance. Prior to joining IDD, he reported on leveraged buyout transactions, private equity fundraising activity, corporate auctions, the middle market and credit markets as a senior writer for The Deal. Before joining The Deal in 2000, Holman was a reporter for PRWeek magazine, where he reported on financial services PR and investor relation activities, as well as international PR developments. He also assisted with Haymarket Media Group's US launch of the public relations trade magazine. Previous to PRWeek, Holman wrote about private equity for Private Equity Week and Buyouts and served as a contributor to IDD in the late 1990's. A Colorado transplant, Holman has called New York home for more than a decade. He received his B.A. in Mass Communications from the University of Colorado at Denver..

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