Charterhouse Development Capital, the UK-based private equity firm, may fall short of the E3bn target set for Charterhouse Capital Partners VII, its latest buyout fund.
In an interview with Bloomberg, Charterhouse director Tom Plant said the company would settle for a final close of E2.5bn, expected at the end of July. Charterhouse held a first close of CCP VII last August on E1.4bn, followed by a second close at the turn of the year at E2bn.
Around one in four euros raised for CCP VII has been committed by new investors, with the rest coming from the firm’s existing limited partners. 50 per cent of the capital committed has come from US-based investors, whilst investors in Europe, the Middle East and Asia have provided the balance.
Speaking in January, Charterhouse head Gordon Bonnyman was unequivocal about the difficulties of fundraising in the current climate. “The collapse in public equity market valuations has left many investors with misaligned allocations and this has left them unable to commit to new [private equity] funds.”
It remains to be seen what impact recent target reductions, including recent cutbacks at Terra Firma Capital Partners and London-based mezzanine start-up Hutton Collins, will have on firms currently embarking on fundraising programmes. Doughty Hanson, Permira and Texas Pacific are among a number of firms planning to raise large funds over the coming year, although the current LP malaise could drag multi-billion euro targets down.
Charterhouse has already invested in two sizeable transactions from CCP VII, including the £860m purchase Coral Eurobet, Britain's third-largest betting chain, and a E1.6bn deal to acquire Telediffusion de France in July.
The private equity fund placement group at Citigroup and Wise Capital are acting for Charterhouse as placement agents in the current fundraising effort.