Advent races to $13bn hard-cap for Fund VIII

The global buyout firm has closed its eighth flagship fund $1bn above its target on an overwhelming amount of re-ups.

Global buyout firm Advent International has closed its eighth flagship vehicle on its $13 billion hard-cap, with about 90 percent of its commitments from existing investors.

The firm completed the fundraise, which was targeting $12 billion, in six months, it said.

It was reportedly marketed without a return hurdle rate with limited partners paying 1.5 percent on committed and invested capital and the manager taking 20 percent of profits accrued over the lifetime of the fund.

Investors in Advent International Global Private Equity VIII include the Los Angeles City Employees’ Retirement System, Massachusetts Pension Reserves Investment Management Board, the Rhode Island State Treasury, and Fubon Life Insurance, according to PEI’s Research & Analytics division.

Its latest vehicle is significantly larger than GPE VII that closed on $10.8 billion in 2012. 

Well-established, large-cap firms seeking capital have benefited from economic uncertainty and a desire from LPs to find a safe place to put their funds to work, Sunaina Sinha, the founder and managing partner of placement agent and advisor Cebile Capital told PEI previously.

“2016 is being led by the big fundraises in the market in Europe today,” Sinha said. “Because so many of the large-cap buyout [funds] and some of the bigger mid-cap buyout [funds] are out in the market right now, that’s what’s taking up most of the mindshare and timeshare of LPs today.”

GPE VIII will pursue the same strategy as its predecessor, investing in buyouts, recapitalisations and growth capital transactions in Europe and North America mainly, and selectively in Asia and Latin America, the firm said. It targets companies in business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom sectors.

The fund will be invested by Advent’s team of more than 130 investment professionals in Europe, North America and Asia and will also leverage its Latin American team’s expertise, it said.

The firm is also currently investing its sixth Latin American vehicle, a 2015-vintage fund that raised $2.1 billion targeting opportunities in Brazil, Chile, Columbia, Mexico and Peru.

Last month, Advent, alongside Singapore’s Government Investment Corporation and Bain Capital, acquired a $350 million minority stake in Indian engineering company Quality Engineering and Software Technologies from Warburg Pincus, as reported by Private Equity International.

In January it sold UK behavioural health specialist Priory Group to the US’ Acadia Healthcare Group in a deal understood to be worth around $2.2 billion.