According to Bloomberg, this is the firm’s lowest target since 1999, following five consecutive funds that each raised $4bn or more.
The Chicago-based private equity firm has begun early fundraising discussions with investors. The shift reflects the increasingly challenging fundraising environment facing the broader private equity industry. Firms including Insight Partners and American Securities have also been forced to lower their expectations amid a tougher capital-raising landscape.

Founded in 1992, Madison Dearborn has long focused on investments across healthcare, financial services, technology, and government-related sectors. Despite the reduced fund size, the firm remains confident in its ability to attract long-term limited partners, leveraging its strong track record and sector expertise.

The scaled-back target highlights the pressure even established firms face in today’s market, where LPs are tightening commitments and rebalancing allocations amid higher interest rates and liquidity constraints.