PE HUB Wire Highlights, 5.29.19

private equity, mergers, M&A
Private Equity Editor Chris Witkowsky reflects at home. Photo by Wendy Witkowsky

New funds madness! Fundraising keeps fevered pace this year, but new shops still struggle to raise

Happy Wednesday!

This is Chris, on the Wire for Luisa, who is off today.

How are things going on your end after the long weekend? Activity still holding up?

Funds: We have two interesting fundraisings out there. Silver Lake has raised around $2.5 billion for its first-ever credit/structured equity fund, Silver Lake Alpine. Whether that fund is still raising or is closed is unclear. A Silver Lake representative declined to comment.

And Leonard Green is officially out with its eighth flagship fund, targeting at least $9.6 billion, and its debut small-cap fund, targeting $2 billion. That fundraising has been gearing up since last year but officially hit the fundraising market in the past few weeks, sources told me.

Fundraising is showing no signs of slowing. U.S.-based buyout and mezzanine funds have raised around $139.1 billion so far this year, more than half the $244.5 billion for all of 2018, according to Buyouts research.

Of course, if you’re a regular reader of this here daily Wire, you know we’ve been doing our best to track first- and second-time funds, spinouts and newly launched independent sponsors. And despite the strong fundraising environment, first-timers are having a tougher time raising their new pools.

“The market as a whole has been incredible,” an LP told me recently. Another source, talking about the challenge of first-time funds, told me: “The fundraising market is so crowded, no one can get any traction or attention. It’s a fast fundraising cycle and it’s all going to re-ups to existing [relationships] and larger fund sizes. Anyone outside that zone is struggling to get any traction with LPs.”


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