Private equity and venture capital sponsors continued to close on capital in March and April amid covid-19 cases peaking globally, historic unemployment and market uncertainty caused by the pandemic.
The 10 largest fundraises for March and April gathered $27.2 billion between them, nearly $8 billion more than the largest fundraises in the equivalent period last year.
Clearlake Capital Group gathered more than $7 billion against a $5 billion target for its sixth flagship vehicle in April. Fund VI is almost twice the size of its 2017-vintage predecessor. The firm began raising capital for Fund VI in the second half of last year and received a re-up rate in the 95 percent plus-range, Clearlake co-founder and managing partner Jose Feliciano told Private Equity International.
More than 200 institutional investors including Alaska Permanent Fund, Connecticut Retirement Plans and Trust Funds, Pennsylvania Public School Employees’ Retirement System and Cathay Life Insurance contributed to the vehicle. The firm invests through debt and equity securities in core sectors technology, industrials and consumer.
CVC Capital Partners’ $4.5 billion haul for Asia is the second-largest vehicle raised since March this year. CVC raised $500 million more than its original target for Fund V and received commitments from Canada Pension Plan Investment Board, New York State Common Retirement Fund and Oregon Public Employees’ Retirement System, which made commitments of $275 million, $250 million and $150 million respectively, according to PEI data. Capital raised for the vehicle will follow the same strategy as the firm’s previous Asia buyout funds – taking control investment in core consumer and services sectors across the region.
US venture capital firm New Enterprise Associates raised $3.6 billion for New Enterprise Associates 17 in March. The new fund, which is NEA’s largest to date, will be invested across early-stage and growth investments in technology and healthcare sectors. The California State Teachers’ Retirement System committed $225 million; Cathay Life Insurance $60 million and Kansas Public Employees Retirement System $50 million, according to PEI data.
Carlyle Group gathered ¥258 billion ($2.4 billion; €2.2 billion) for its fourth Japan-dedicated vehicle in March. Fund IV is more than double its 2013-vintage predecessor. Capital from the vehicle will be invested in upper mid-market and large-cap opportunities in Japan across consumer, retail and healthcare, general industries and TMT. Corporate carve-outs are also a target, with the firm expecting to spend between $200 million and $400 million in each transaction, Carlyle head of Japan buyouts Kazuhiro Yamada told PEI in March.
General Catalyst Partners, a venture capital firm founded in Cambridge, Massachusetts, raised $2.3 billion for it largest vehicle to date. The firm took around four months to raise Fund X and received a $150 million commitment from Tennessee Consolidated Retirement System and $75 million each from State Teachers Retirement System of Ohio and Maine Public Employees Retirement System, PEI data show.