The 10 largest private equity funds raised in February gathered $18.7 billion between them, a 55 percent decrease on the $41.9 billion raised by the 10 largest funds holding a final close in January, according to PEI data.
Boston-based ArcLight Capital Partners gathered $3.4 billion for its seventh flagship fund, which will invest in midstream infrastructure opportunities and power investments. ArcLight Energy Partners Fund VII is 40 percent smaller than its predecessor, the $5.6 billion 2014-vintage Fund VI. Oklahoma Police Pension and Retirement System committed $15 million to the vehicle.
Odyssey Investment Partners held a final close on $3.25 billion against a $3 billion target for its sixth flagship vehicle. Fund VI was oversubscribed and closed at its hard-cap with significant upsizing by existing investors and the addition of several new institutional investors, according to a statement. Odyssey’s previous fund closed on $2 billion in 2014. Capital raised for the vehicle will pick up control stakes in mid-market companies in the US. Oregon State Treasury committed $150 million, Texas County and District Retirement System $110 million and Rhode Island State Treasury $50 million.
Mercer, meanwhile, gathered $2.7 billion for its fifth global fund of funds vehicle. Capital raised for the fund will invest across private equity, private debt, infrastructure, real estate, other real assets and sustainable opportunities. Investors in the fund include corporate pension funds, public pension funds, insurance companies, asset managers, endowments and foundations from Europe, North America, Asia-Pacific and Africa.
Bregal Investments closed Bregal Sagemount Fund III at the fund’s hard-cap of $1.5 billion, exceeding the $1.35 billion target. Capital from the growth-focused vehicle will make investments of $40 million to $150 million per transaction in both control and non-control positions and will make equity and/or junior debt investments. Targeted sectors include software, digital infrastructure, healthcare IT services, business and consumer services and financial technology/specialty finance. Fund III received $75 million each from Teachers’ Retirement System of the State of Illinois and Indiana Public Retirement System.
San Francisco-based venture firm Founders Fund, the investment firm established by PayPal co-founder Peter Thiel, gathered $1.5 billion for its debut growth fund. Founders Growth Fund follows on the heels of a $1.2 billion capital raise for its seventh vehicle in December. It is unclear how much the firm was targeting for its inaugural growth fund. The AirBnb and SpaceX backer targets companies in aerospace, AI, biotech, energy and internet companies.