ABRY nears final closes on quick-fire fundraises

The Boston-headquartered private equity veteran is expected to be significantly oversubscribed for its seventh buyout fund, targeting $1.6bn, and its second senior debt fund, targeting $1.3bn.

ABRY Partners is nearing final closes for two funds it only recently launched, which are expected to come in well oversubscribed.

ABRY Partners VII, which has a target of $1.6 billion, is expected to close on 29 April above target, a limited partner source told PEI. ABRY Advanced Securities Fund II, which has been targeting $1.3 billion, is expected to close over target on 31 March, the source said.

The firm, founded in 1989, is charging a 2 percent management fee on Fund VII and 30 percent carry. The firm also is charging a 2 percent management fee and a 20 percent carry on the senior debt fund, which sources told PEI is high for a credit-related vehicle.

ABRY also put some restrictions on access to Fund VII, according to sources, limiting it to existing LPs or to LPs who were also willing to commit to ASF II. The “linked” nature of the funds could not be confirmed with ABRY, which declined to comment.

ABRY launched the funds in recent months, and the quick-fire nature of the fundraisings can be attributed to the Boston-based firm’s strong track record.

ABRY’s sixth fund, which closed in 2008 on $1.35 billion, was generating a 24.7 percent internal rate of return and a 1.30x investment multiple as of 30 June, 2010, according to performance information from the California Public Employees’ Retirement System. Fund V, which collected $900 million in 2005, was producing a 19.1 percent IRR and a 1.90x multiple, according to CalPERS.

Investors also like the firm’s willingness to stick to a modest fund size, which is just right for the sectors it invests in, including media, communications and information services, two sources said.

ABRY last year closed its third “Senior Equity” fund in 2010 on $750 million. The firm has completed more than $27 billion of leveraged deals and other private equity, mezzanine and preferred equity placements, according to its web site.