Scoops & Analysis

Oak Hill collects $1.27 bln for fourth fund

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oak tree
Vistitors check out the sights around the Angel Oak tree in Charleston, South Carolina September 24, 2013. Massive canopy shades stretching more than 17,000 square feet and a trunk wider than 25 feet in circumference have drawn generations of visitors to the centuries-old live oak tree on an island near historic Charleston. A group aiming to preserve the majestic tree for decades to come is racing against a fall deadline to raise the $1.2 million needed to protect surrounding land from development that environmentalists say would harm the oak's health. REUTERS/Randall Hill (UNITED STATES - Tags: ENVIRONMENT POLITICS) - RTR3FG1A

Oak Hill Capital Partners raised $1.27 billion across five vehicles for Oak Hill Capital Partners IV, according to filings with the U.S. Securities and Exchange Commission.

It’s not clear if this is a final close. Oak Hill had originally targeted $3 billion for the fund, but these latest filings, dated July 1, give a target of $2 billion. Buyouts reported last month that the firm’s latest fundraising includes a stapled secondary process, whereby money for a new fund is raised from investors who buy interests in older funds from existing limited partners.

Buyouts reported in September 2015 that Oak Hill had narrowed the focus of its investment strategy to four core sectors, down from the six targeted by its $3.8 billion third flagship fund, following a series of personnel departures. The firm’s website lists those sectors as consumer, retail and distribution; industrials; media and communications; and services (e.g. IT infrastructure and solutions). The firm stopped focusing on healthcare and technology investments.

Earlier this month, Oak Hill announced the acquisition of Oxford Networks, a fiber-optic bandwidth infrastructure company, from Novacap and Bank Street Capital Partners. The firm intends to combine the operations of Oxford, which is active in Maine, New Hampshire and Massachusetts, with those of FirstLight Fiber, a provider with a network across New Hampshire, Vermont and New York. Oak Hill announced an agreement to buy FirstLight from Riverside Partners in March 2016.

Photo: Vistitors check out the sights around the Angel Oak tree in Charleston, South Carolina September 24, 2013. REUTERS/Randall Hill