BC Partners launches €6bn Fund IX

The firm is offering a 5% reduction of all GP fees on the fund for LPs who commit prior to the first close.

BC Partners has launched its ninth buyout fund, which is targeting about €6 billion.

The San Francisco Employees’ Retirement System this week was considering making a €30 million commitment to the fund, which registered with the Guernsey Financial Services Commission on 22 September.

BC’s Fund VIII collected about €6 billion in 2005. BC is offering a 5 percent discount on all GP fees for limited partners who make commitments to the fund prior to the first close, according to market sources.

BC Partners declined to comment.

Fund VIII is close to being fully invested, with more than 80 percent of the capital committed to deals, according to market sources. The fund was generating a 9.6 percent internal rate of return as of 31 March, according to the California State Teachers’ Retirement System.

Earlier this year, LPs in Fund VIII granted the firm an extension of its investment period to provide more time to invest about $1 billion that remained in the fund for deals. The extension was not necessary, a source told PEO at the time, but took some of the pressure off the firm to get the capital invested right away.

BC Partners had held back investing the fund during the credit bubble from 2006 to 2008, the source said. The firm then deployed about 30 percent of the capital in the fund after Lehman Brothers collapsed in the fall of 2008.

Another firm, Montagu Private Equity, started gearing up to raise its €2 billion fourth fund. Montagu received a €60 million commitment from the Massachusetts state pension earlier this week.