Private Equity News & Analysis

CD&R looks to close $5bn Fund VIII by year end

The firm launched its eighth buyout fund in early 2008 and has dropped its original target from $7.5bn to $5bn.

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Clayton Dubilier & Rice is looking to close its eighth buyout fund, with a target of $5 billion, by the end of the year.

The firm, one of the oldest in the private equity industry, dropped the original target of Clayton Dubilier & Rice VIII from $7.5 billion, which was launched in January 2008. It has collected about $4.5 billion for the fund so far.

The fund includes some new relationships for the firm, including the South Carolina Retirement Systems, which committed $100 million, and the Teachers Retirement System of Texas. Other LPs in the fund include the New Mexico State Investment Council and fund of funds Conversus Capital.

CD&R’s prior fund closed on $4 billion in 2005.

The firm has made investments from the eighth fund. CD&R agreed to invest $250 million in NYSE-listed NCI Building Systems, taking a 72 percent ownership stake in the company. The deal has been delayed though as the company negotiates with bondholders over an exchange offer.

CD&R is known for its high-profile bench of operating partners, including Jack Welch, former chief executive officer of General Electric. The firm was founded in 1978.