Vestar holds $3.7bn final close

Vestar has completed the fundraising for its fifth fund, roping in $3.7bn in commitments. Ireland’s National Pension Reserve fund is among the fund’s backers.

New York-based Vestar Capital Partners made quick work of its fifth fund, holding a final close of $3.7 billion (€3.05 billion). The firm launched the fund in April of last year, and held a first closing of $3 billion just four months later. The final close officially occurred in December, although the firm publicised the news earlier today.

Dan O’Connell, chief executive officer, Vestar Capital

Investors in the fund include The Los Angeles County Employees’ Retirement Association (LACERA), The Washington State Investment Board (WSIB), The Pennsylvania State Employees’ Retirement System, The Oregon State Treasury and Ireland’s National Pension Reserve Fund, among others.

Even as the firm easily exceeded the size of its previous investment vehicle, Vestar chose to apply the brakes during the fundraising. Dan O’Connell, the chief executive officer at the firm, said in a statement, “While meaningfully oversubscribed, we decided to limit commitments to our initial targeted fund size of $3.7 billion, a 50 percent increase over our predecessor fund, Vestar IV, which we closed in 1999”.

He said that over 90 percent of the firm’s existing limited partners returned to invest in Vestar’s fifth fund, and also noted that they were able to pull in new institutional investors from the US, Europe and Asia.

Monument Group served as placement agent to help Vestar market the fund.

Vestar had been fairly quiet early on last year, but became quite active in the fourth quarter. In November, Vestar exited its investment in Italy-based auto-parts maker FL Selenia, selling it to Kohlberg Kravis Roberts in a roughly $980 million deal. In December, the firm also inked a deal to buy Swiss flooring company Nybron Flooring International.

Vestar maintains offices in New York, Denver, Boston, Paris and Milan.