Texas Pacific to raise new buyout fund

The US buyout firm is reportedly preparing the launch of a new buyout fund to follow up on the $4.5bn vehicle it closed in 2000.

Texas Pacific, the US-based big-ticket buyout firm currently linked with a bid for UK-based supermarket chain Safeway, is marketing plans to raise its latest buyout fund, according to Bloomberg.

 

The US firm has contacted institutional investors, including Hamilton Lane Advisors, Los Angeles County Employees' Retirement Association and the Canada Pension Plan Investment Board about proposals to raise a similar sized fund to its predecessor, which raised $4.5bn in 2000, said Bloomberg. The news service cited sources as saying the firm was expected to commence fundraising in the second quarter.

 

Texas Pacific will be competing with a number of big buyout firms currently raising multi-billion dollar funds. These include Charterhouse, which recently held a second close for its seventh fund on E2bn. Guy Hands is hoping to close his E3bn fund this year, whilst in Doughty Hanson is also planning to raise a E3bn fund.

 

According to Bloomberg, Texas Pacific is looking to raise new capital in order to exploit the difficulties of the financial markets by acquiring undervalued public companies and buying up units of conglomerates looking to streamline their operations.

 

The firm’s most recent transactions include the E668m acquisition of Gate Gourmet, the Swiss-based in-flight meals provider and the protracted deal for Burger King, which was eventually acquired for $1.5bn. The firm is currently one of seven groups bidding for £3bn-valued Safeway supermarket chain.

 

Texas Pacific Group manages more than $8bn in committed equity capital. Over the past decade, the firm has completed more than 40 transactions, including Beringer Wine Estates, Continental Airlines, Del Monte Foods, Ducati Motorcycles, J Crew, Oxford Health Plans, Petco and Seagate.