CD&R Raises More Than Half of Fund IX’s $5 Bln Target

Clayton, Dubilier & Rice has so far collected about $2.7 billion for its next buyout fund, according to a source and an SEC filing.

CD&R is providing at least $250 million in GP commitment to Fund IX, which brings the total to about $3 billion, the source says. The New York private equity firm, which has invested in Sally Beauty and Hertz Global, has collected more than half of the $5 billion target for Fund IX. It aims to largely wrap up fundraising by the end of the year, the source says.

Fundraising for CD&R’s ninth pool officially began in March, peHUB has reported. Fund IX is targeting the same amount as CD&R’s prior fund. CD&R’s eighth pool collected $5 billion in late 2009. Fund VIII is generating a net IRR of just over 20% and a gross IRR of 33% as of June 30, the person says.

Founded in 1978, CD&R invests in several industries including consumer, retail, industrial and distribution. CD&R has scored some notable exits recently. The PE firm, along with BofA and the Carlyle Group, sold off its remaining stake in Hertz Global in May. CD&R also sold AssuraMed in March after a two-and-a-half year hold when Cardinal Health agreed to buy the company for $2.1 billion.

Also, in July 2012, CD&R sold its entire remaining stake in Sally Beauty. The PE firm made 3.4x its money on Sally Beauty which generated a 26% IRR, peHUB has reported. However, CD&R made the investment in Sally from its seventh fund, which raised $4 billion in 2006.

Officials for CD&R declined comment.

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