Hicks, Muse closes Fund 5

The US buyout specialist has closed on $1.6bn, having scaled back its latest buyout fund.

Texan private equity house Hicks, Muse, Tate & Furst has closed its fifth US buyout fund at $1.6bn, significantly short of the original target set in 2000. The Dallas-based firm had hoped to raise more than $4.5bn when the fund launched in 2000, according to reports.

The group’s previous fund, which closed at the end of 1998, had raised $4.1bn in little more than a year.

However following a number technology investments that last year ended in bankruptcies and 2001’s much harsher fundraising environment, it is understood that many investors declined to sign up for the firm’s fifth fund.

Earlier this year Hicks, Muse teamed up with Apax Partners to buy Yell, British Telecom’s yellow pages business, in one of largest LBOs of 2001. The duo is currently out looking to add McLeodUSA’s directories division to their joint investment.