Welsh Carson holds final close on $3.3bn for 12th fund – exclusive

The firm exceeded its $3bn target and committed 5% to the fund.

Welsh, Carson, Anderson & Stowe has held a final close on its latest fund, Welsh Carson Anderson & Stowe XII, on $3.33 billion, exceeding its $3 billion target, according to a person familiar with the matter.

The fund had a hard-cap of $3.5 billion, in line with the firm's previous vehicle.

The New York-based firm committed $180 million to the fund, or more than 5 percent of the total fund size, the source added.

The firm declined to comment.

Limited partners include pension plans, sovereign wealth funds and endowments, including the California Public Employees Retirement System, which committed $350 million in 2015. More than $72 million has been drawn down from the commitment, according to CalPERS's private equity programme fund performance review.

CalPERS previously committed $125 million to Welsh Carson Anderson & Stowe XI in 2009. That fund posted a net internal rate of return of 14.4 percent and a 1.5x investment multiple as of September.

Other LPs in the fund include the Minnesota State Board of Investment and the California State Teachers' Retirement System.

Welsh Carson, which has $20 billion in assets under management, was formed in 1979 and focuses on investing in information/business services and healthcare, primarily in the US. It currently has about 25 portfolio companies.