Clearlake Capital expects to hold a final close for its Clearlake Opportunities Partners II fund targeting $1 billion by the end of May.
If the firm achieves that target, it will have raised more than $4 billion in less than two years. In March last year, the firm closed on $3.6 billion for its flagship private equity fund Clearlake Capital Partners V.
Like its flagship funds, Clearlake’s opportunities funds target small and medium-sized North American companies. The opportunities funds take non-control positions in companies that may be underperforming or undergoing complex financial, operational or structural changes, according to Connecticut Retirement Plans and Trust Funds documents.
The fund will make structured equity and non-control distressed investments, targeting between $25 million and $75 million in each investment.
Target sectors for Clearlake funds include industrials and energy, software, and technology-enabled services.
However, Clearlake expects increased competition in its target sectors from large technology, consumer or industrial companies looking to make strategic acquisitions, as well as sovereign wealth funds that are deploying capital in long-term, downside protected investments. It is currently competing against Canada Pension Plan Investment Board and GIC for a structured equity investment, according to the Connecticut documents.
The interactive chart below shows the firm’s previous funds’ performances. The bubbles are sized proportionately to the size of the fund; toggle between the tabs to see how they have fared by net internal rate of return and total value multiple.