Clayton, Dubilier & Rice (DC&R) is close to raising $23 billion for its new flagship buyout fund, overshooting its initial target by $3bn to defy an industry-wide slump in fundraising, the Financial Times reported on Tuesday.
CD&R asked its investors if it could raise the fund’s so-called hard cap from $23 billion to $23.5 billion last week, in a sign of its confidence in raising more than its original target of $20 billion, the report said, citing people familiar with the matter.
CD&R did not immediately respond to Reuters’ request for a comment.
Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
The buyout firm’s rare move to raise the fund’s upper limit comes as the industry faces potentially more serious threats. Private equity funds could face the prospect of a prolonged period of higher borrowing costs, lower valuations, and depressed investment returns.
The value of U.S. buyout deals in the last quarter of last year fell to half the level of a year earlier and has remained depressed since.
Source: Reuters
Can’t stop reading? Read more
Blackstone taps bond market as private credit BDCs end issuance drought
Blackstone taps bond market as private credit BDCs end issuance drought Blackstone's private...
EQT raises the stakes with revised $12.3bn bid for Intertek
EQT raises the stakes with revised $12.3bn bid for Intertek EQT has tabled an improved takeover...
Temasek’s Azalea bets on evergreen structure to democratise private equity access
Temasek's Azalea bets on evergreen structure to democratise private equity access Azalea, a unit...