The 10 largest funds in September raised more than $35 billion between them, more than triple the amount gathered by the 10 largest capital raises in August.
Tech-focused firm Vista Equity Partners held the final close on its $16 billion target for Vista Equity Partners VII, its largest vehicle to date. Fund VII is almost 44 percent larger than its 2016-vintage predecessor. Canada Pension Plan Investment Board is one of the largest backers of the fund, investing C$500 million ($375.7 million; €341.6 million), while the California Public Employees’ Retirement System contributed $400 million, according to PEI data.
Providence Equity Partners gathered over $6 billion for its eighth flagship fund, $1 billion more than its original target. The firm’s previous flagship fund closed on $5 billion in 2013. Capital raised for Fund VIII will be invested in large buyouts and take-privates in the media, communications, education and information industries. LPs in the fund include the New York State Common Retirement Fund, which invested $250 million, and CPPIB and South Carolina Retirement System, which committed $220 million and $150 million, respectively. Providence’s fourth strategic growth fund also made it onto the largest funds list, closing on its $2 billion hard-cap. Capital raise for Strategic Growth IV will back software and tech-enabled service companies.
The third largest fund raised was South Korea’s Hahn & Co, which amassed $3.2 billion – $2.7 billion for its third flagship fund and $500 million for a co-investment sidecar which will invest alongside the main fund. Hahn & Co III is the largest ever fund dedicated to Korea. More than 90 percent of existing investors in Hahn & Co’s previous funds re-upped in Fund III, with close to 40 percent of LPs from North America. Pennsylvania State Employees Retirement System and NYSCRF are some of those in the fund.
Ardian raised more than twice its target for its fifth and largest co-investment fund. The firm held a $2.5 billion final close against a $1.5 billion target for the vehicle. Nearly 20 percent of capital raised came from high-net-worth investors and the firm raised five times more money from HNWIs in Fund V than in Fund IV. In addition, of the 194 total LPs in the fund, 153 were new to Ardian’s co-investment offering and 92 were new to the firm. The firm has also earmarked around $500 million of Fund V for investments in the Asia-Pacific region.
Advent International’s debut tech fund Advent Global Technology Strategic Investors collected $2 billion from LPs, exceeding its $1.6 billion target. The capital raise comes only three months after the Boston-based firm raised $17.5 billion for its flagship fund Advent International GPE IX. Advent Tech is companion fund to GPE IX and will invest as little as $50 million in equity in targets. Around half the capital for Advent Tech came from North American LPs, with Europe and Asia-Pacific at roughly 20 percent each and 14 percent from the Middle East. It received $50 million from Oregon Public Employees’ Retirement System, $20 million from Virginia Retirement System and $15 million from Los Angeles City Employees’ Retirement System, according to PEI data.
Also worth noting is PE giant Blackstone‘s $26 billion haul for Blackstone Capital Partners VIII, founder Stephen Schwarzman wrote in his memoir What it Takes: Lessons in the Pursuit of Excellence, published in September. Blackstone has not made a formal announcement on the final closing of BCP VIII thus far.