In 2011, Florida-based Sun Capital started fundraising for its sixth buyout fund with a $3 billion target. SEC filings show that the firm has opted to close on $2.1 billion, shy of its target, and well below previous funds which were north of $5 billion.
The sixth fund had a hard cap of $4 billion according to Private Equity International’s research and analytics division.
The firm has noted the challenging fundraising environment in the past, and reports suggest that investors were starting to push back on what they saw as irresponsible growth. Sun has also had difficulty finding new deals for its existing buyout vehicles.
The firm has been in the news recently for two exits. Sun booked more than $1 billion on its sale of Emerald Performance Materials to American Securities, PEI reported at the time. Sun also sold DBApparel, a French underwear maker to HanesBrands for $550 million last week, marking the sixth exit for Sun so far this year. That deal is expected to close in the third quarter.
Last year, the firm completed eight exits and two successful IPOs totaling more than $1 billion in realizations in 2013.