PE-Hub: Private Equity Group's Keep Raising Funds
Posted by Lindsay Kammerzelt on Fri, Apr 17, 2009 @ 08:18 PM
This next group of articles is from a collection of PE Hub's daily emails.
Private Equity Groups (PEGs) Keep Raising Funds – This next article should be read in conjunction with yesterday's posting "Cash Stockpiles Could Trigger More M&A"; if you combine corporate cash waiting to be spent on acquisitions and all the funds that PEGs continue to raise, we should eventually see a huge increase in M&A activity. There will be tremendous pent up demand for acquisitions once confidence returns to capital markets. As I often do, I have gathered a small sampling of investment firm fundraising announcements over the past few weeks for you to see. You will never hear about this in the mainstream press, but it does indicate that money is out there for deals.
Here are some highlights:
• Element Partners, a leading growth equity firm specializing in clean technology, today announced the final closing of Element Partners II LP (Element II). Initially targeted at $400 million, the fund was oversubscribed, resulting in $486 million in committed capital.
• According to International Financial Services London, sovereign wealth funds worldwide have grown their assets under management by 18% during 2008 to reach $3.9 trillion.
• The Employees' Retirement System of Texas (ERS) has approved an updated private equity tactical plan, which entails committing $1 billion to the asset class in 2009 and $700 million each year for the next four years.
• Thoma Bravo Partners closed on $822.5 million for its latest fund. ... The new vehicle is larger than its predecessor, Thoma Cressey Fund VIII, which corralled $765 million in commitments when it closed in January, 2006.
• New Capital Partners has closed its second fund with $140 million in capital commitments. The private equity firm focuses on small-cap and lower mid-market businesses in the southeastern U.S. and Texas.
• Vicente Capital Partners closed its debut fund at $165 million, exceeding its original $150 million target. … Vicente targets companies with revenues of between $2 million and $25 million, and will make investments of $5 million to $15 million pursuing both non-control and control equity investments.
Scott McIntosh from The March Group has Vicente Capital Partners scheduled as our roundtable guest on April 17, 2009! As you can see from their description, they are right in our sweet spot seeking middle market corporations. Also, please note that most of these funds EXCEEDED their original targets! This is an indication to me of tremendous pent up demand for good deals.
That's all for now. Remember, the M&A industry has survived every economic downturn in history and it will survive this one too!
So, in honor of the start of major league baseball, I leave you with this quote that I think also applies to our business: "Baseball is ninety percent mental and the other half is physical." - Yogi Berra.
For more information on the M&A business and related topics, visit
The March Group’s profile on Answers.com.