Report: Madison Dearborn closes Fund VI on $4.1bn

The target for Fund VI was originally $10bn, which was cut to $7.5bn in 2008.

After 28 months of fundraising, Madison Dearborn Capital Partners VI closed on $4.1 billion, below its initial $10 billion target, according to news reports.

A Madison Dearborn spokesperson declined to comment.

Fundraising began in 2007. As fundraising and general market conditions worsened, Madison Dearborn revised the fund’s target to $7.5 billion in the summer of 2008.

In January of this year, the firm asked LPs for a fundraising extension, as Fund VI was originally slated to close in February. A report in the Wall Street Journal said the fund’s committed capital had been “hovering at around $4 billion raised since mid-2008”.

Madison Dearborn’s fifth fund closed on $6.5 billion in 2006. That capital was put to work very quickly in large deals such as Univision Communications Inc. and CDW Corp. at the height of the buyout bubble, and had few realizations to show when the firm returned to market.

In March, Madison Dearborn inked its first deal of 2010 with the $915 million take-private of BWAY.

The firm's CEO and co-founder, John Canning, stepped down from his active leadership role around the time fundraising started in 2007, staying on as chairman. Sam Mencoff and Paul Finnegan, fellow founders, stepped in as co-CEOs. Finnegan and Mencoff invested equal amounts in Madison Dearborn Capital Partners VI, contributing the largest portion to the $260 million that was committed to the fund from the firm’s employees.

Several large public pension funds invested in Fund VI, including Washington State Investment Board,   New York State Teachers’ Retirement System, Virginia Retirement System, Maryland State Retirement and Pension System, and Illinois State Board of Investment.