Research

Market at a Glance – fundraising and dealmaking both lag 2017

May 28 2018

private equity, merger, M&A, fundraising

Over the past two weeks, U.S.-based buyout and mezzanine funds added $8.3 billion in commitments, bringing 2018’s sum to $72.9 billion. Despite the second straight steady week, fundraising still trails last year at this time by $24.4 billion, or 25 percent.

Linden Capital Partners exceeded its intended goal and closed its fourth flagship. Linden Capital Partners IV wrapped up at $1.5 billion, 20 percent beyond the original $1.25 billion target. The firm focuses on middle-market healthcare companies.

Another healthcare and life sciences-focused vehicle reached the end of its fundraising road. Foresite Capital, a growth equity provider to transformative companies at all stages, finalized its fourth primary fund on $668 million.

Levine Leichtman Capital Partners is nearing its $2.2 billion end-goal for its sixth flagship. The firm specializes in making structured equity investments in middle-market U.S. companies and just went over $2 billion in commitments for Fund VI.

Since Buyouts last went to press, 2018’s dealmaking had another slow period, adding only $1.8 billion. The year’s aggregate now sits at $73.9 billion, behind this time a year ago by $1.8 billion, or 2.3 percent.

Of the deals with disclosed value, only one was of significant size. Platinum Equity bought the European vacation rentals business of Wyndham Worldwide Corp, the hotel and resort operator, for $1.3 billion.