US private equity firm Hellman & Friedman has held a first close on $6 billion for its seventh buyout fund, according to sources close to the situation.
Hellman & Friedman Capital Partners VII (H&F VII) is targeting $10 billion and has been in the market for just over four months. Investors include the San Francisco Employee’s Retirement System and the New York State Teacher’s Retirement System. $400 million in commitments came from the fund’s managers.
In December the Pennsylvania State Employees’ Retirement System announced plans to delay follow-on commitments to four private equity funds including H&F VII. It is not known whether commitments have now been made but the fund delayed its first close in order to wait for some investors, a source said.
The fund is due to be invested over a 6 year period with management fees of just 1.5 percent of capital commitments, according to a report on newswire Dow Jones.
Hellman & Friedman was founded in 1984 and has offices in San Francisco, London, and New York. It has raised more than $16 billion of committed capital, according to its website, and is currently investing its sixth fund which closed on $8 billion in October 2006. The firm focuses on investing in financial services, professional services, asset management, software and information, media and energy.
Hellman & Friedman declined to comment.