Sun Capital raises $2.3bn for Fund VII – exclusive

The North America- and Western Europe-focused buyout firm, which was targeting $2.2bn, has been in market since July last year.

Sun Capital Partners will hold a final close this week on its latest flagship fund, Private Equity International has learned.

The Boca Raton-based buyout firm has raised $2.3 billion against a target of $2.2 billion for its 2018-vintage buyout fund Sun Capital Partners VII, according to a source with knowledge of the fundraise.

The news comes a week after sister publication Buyouts revealed Sun Capital was carrying out a secondaries process on its 2012-vintage sixth fund, which will allow existing investors to cash out their stakes. It is unclear whether the process included a stapled commitment to the new fund.

Headline exits from Fund VI include the sale of Aclara Technologies for $1.1 billion, three years after Sun purchased the smart metering outfit for $130 million. A source with knowledge of Fund VI said its gross internal rate of return is north of 65 percent.

Sun focuses on North America and Western Europe, investing in sectors including automotive, consumer products and industrials. The firm ranked 109th in the latest PEI 300 list of the largest private equity firms, based on capital raised in the preceding five years, and has total assets under management of $7 billion.

Fund VII launched in July 2018 and had raised $1.87 billion by January, according to a filing with the Securities and Exchange Commission. LPs known to have committed to the fund include Luxembourg investment firm Brederode SA (€17.20 million) and the University System of New Hampshire ($5 million).

The firm came under criticism from senator Elizabeth Warren last week over its role in the liquidation of discount retailer ShopKo, which had been acquired by the firm’s fourth fund in 2005.

Sun Capital declined to comment.