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Bank Spin-Out to Seek $3.5B Early Next Year

The New York-based firm CCMP Capital Advisors LLC will likely launch its next fundraising effort in the first quarter of 2012, Buyouts reported earlier today, citing two sources.

The firm will seek to raise $3.5 billion, a slight uptick from the $3.4 billion fund it raised in 2006 but a fairly ambitious goal considering the difficulty of today’s fundraising market.

The fundraising will be all the tougher because former parent JPMorgan, which committed just under a quarter of the predecessor fund, cannot commit to Fund III from its own balance sheet because of the Volcker Rule in the Dodd-Frank financial reform law. (However, it can channel money through funds of funds and other third-party asset management businesses.)

To help diversify its investor base, CCMP Capital in recent years has been cultivating relationships with sovereign wealth funds in Asia, Australia, Europe and the Middle East; a couple are already performing due diligence on backing the new fund, one source said. The firm will likely hire Credit Suisse to help it raise the fund.

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Bernard Vaughan is a Senior Editor at Buyouts Magazine. Follow his tweets @BVaughanReuters.