Code Hennessy closes $1.3bn fund

The Chicago private equity firm has closed its fifth buyout fund on $1.3bn, completing its fundraising in approximately six months.

Chicago, Illinois-based private equity firm Code Hennessy & Simmons has held a final close on its fifth fund, CHS Private Equity V, with $1.3 billion (€1 billion) in total commitments.

The fund, which had a target of $1.25 billion and a cap of $1.3 billion, was raised in approximately six months. The firm’s fourth fund, which closed on $1 billion in 1999, is approximately 84 percent invested according to a spokesperson for Code Hennessy.

There are over 60 limited partners in CHS Private Equity Fund V including the Teachers' Retirement System of the State of Illinois, the Pennsylvania State Employees' Retirement System and Washington State Investment Board, which committed $40 million, $50 million and $125 million, respectively.

Both Pennsylvania SERS and the Washington Investment Board have invested in previous Code Hennessy funds.

Code Hennessy’s fund closing is just one example of the busy fundraising year that lies ahead, particularly among the giant mega-funds currently in the market. Private equity firms such as The Blackstone Group, KKR, Warburg Pincus, Apax Partners, BC Partners and CVC Capital are all looking to raise multi-billion dollar buyout funds. Even global investment bank Goldman Sachs is putting its foot forward, reportedly preparing to raise a fund earmarked at $7 billion.

Code Hennessy & Simmons, founded in 1988 by Andrew Code, Daniel Hennessy and Brian Simmons, currently manages over $2.5 billion in capital.