Performance watch: Clearlake’s PE funds

The California-based firm is eyeing up to $13.75bn for its seventh flagship fund, investor documents show.

Clearlake Capital Partners, which came back to market in the summer of 2020 with its seventh flagship fund, has set the hard-cap of its latest vehicle at $13.75 billion.

December documents prepared for the Pennsylvania Public School Employees’ Retirement System by Hamilton Lane revealed the upper fundraising figure for Clearlake Capital Partners VII, which has a $10 billion target. That is double that of its 2020-vintage, $7.1 billion predecessor Clearlake Capital Partners VI, which initially sought to raise $5 billion.

Fund VII has received a $200 million commitment from CPP Investments, $80 million from Cathay Life Insurance and $50 million from Alaska Retirement Management Board, PEI data shows.

The Santa Monica, California-based firm held an undisclosed first close on Fund VII in September, according to the documents.

The firm’s GP commitment is at least the lesser of 2 percent of commitments or $200 million, according to the documents.

Similar to its prior vehicles, Fund VII will primarily back North American, mid-market companies in the industrials, technology and consumer sectors. It will opportunistically seek to take advantage of market dislocations and out-of-favour industries, as well as back restructurings and turnarounds.

Capital raised from Fund VII will invest in approximately 18 to 22 core investments and several toehold investments. Ticket sizes are between $500 million and $750 million.

The interactive charts below show how Clearlake’s most recent funds have performed thus far, based on publicly available data. The bubbles are sized proportionately to the amount of capital raised.

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