BDT Capital Partners closes Fund II on $6.2bn

The firm, founded by an ex-Goldman Sachs vice chairman Byron Trott, exceeded its $5.21 billion target.

BDT Capital Partners has closed its second fund on its $6.2 billion hard-cap, a source close to the matter told Private Equity International.

It beat its $5.21 billion target, according to the firm’s filing with the US Securities and Exchange Commission. BDT Capital Partners Fund II is more than three times larger than its predecessor, a 2009-vintage vehicle that raised $2 billion to invest in North American companies.

Fund II is expected to pursue the same strategy as Fund I. It held its first close on $3.5 billion in July 2014 with more than 120 LPs onboard, and had reached its target by October of that year, as reported by PEI.

Another source told PEI that BDT took a break from fundraising after reaching its target, and reopened at a time it could begin deploying capital. At that point, a number of investors wanted to commit to the fund, pushing the total fundraising amount to the hard-cap, the person said.

Investors in BDT Capital Partners Fund I included The Pritzker Traubert Family Foundation in Chicago and Italian corporate pension fund EXOR, according to PEI Research & Analytics. The source said Fund II's investor base is global and consists mostly of closely held business owners, rather than institutions and pensions.

It was followed in 2012 by BDT Capital Partners Annex Fund, targeting $1 billion, according to PEI Research.

In 2013 BDT co-invested through Fund I in a minority stake of Tory Burch with General Atlantic, and invested in Tudor Pickering Holt & Co., an energy investment and merchant bank, as reported by PEI.

Fund II’s investments include a majority interest in Alliance Laundry Systems acquired in August from the Ontario Teachers’ Pension Plan, according to a press release.

Cravath, Swaine & Moore was the legal advisor for the fund, according to the law firm’s website.

BDT, launched in 2009 by former Goldman Sachs vice chairman Byron Trott, is a boutique investment bank that provides financial advisory services, according to PEI Research. It manages over $8 billion, according to the Alliance Laundry press release.