Clayton, Dubilier & Rice is seeking $26bn for its next flagship buyout fund, in what would rank among the largest private equity fundraises ever, Bloomberg reports.

Including capital committed by the firm and its partners, the total size could exceed $28bn. CD&R has begun pre-marketing the fund ahead of a formal launch expected in the first half of the year.

The firm closed its previous flagship fund at $26bn in 2023 and has maintained a strategy focused on large, control-oriented buyouts. Unlike many peers, CD&R has largely avoided diversifying into private credit or infrastructure, instead doubling down on operationally intensive transactions in healthcare, industrials, consumer, and technology-enabled businesses.

The fundraising effort comes at a time when global private equity capital formation has slowed sharply. Industry-wide fundraising fell to about $407.5bn last year, down from $611.6bn the year before, as limited partners became more selective amid slower exits and elevated interest rates.

CD&R’s ability to return to market at scale will be closely watched as a test of LP appetite for mega-funds in a more constrained fundraising environment.

If you think we missed any important news, please do not hesitate to contact us at [email protected].

Can`t stop reading? Read more.