Charterhouse Group Abandons Fundraising After Two Years: UPDATED

The Charterhouse Group has called off fundraising for its latest pool after spending two years marketing, sources say.

The New York-based private equity firm was seeking $400 to $500 million for Charterhouse Equity Partners V LP, persons say. But the firm has decided to go “deal by deal” instead of managing a pool, one person says.

I asked the source if Charterhouse was now a “zombie.” That’s not an accurate characterization, the source says. “There is still an organization there,” the person says.

News of Charterhouse’s fundraising efforts was first reported by Bloomberg.

The PE firm’s last fund, Charterhouse Equity Partners IV LP, closed at $447 million in January 2005, Preqin says. Fund IV has seen several exits. In 2011, Charterhouse sold Camelot System of Care, as well the education services division of Camelot Schools and MxEnergy. All three were from fund IV.

It’s unclear whether Charterhouse still owns Suddelink, which is listed under fund IV. Last month, Suddenlink received a $2 billion investment from BC Partners and CPPIB which allowed investors like GS Capital Partners, Quadrangle Group and Oaktree Capital Management to cash out. UPDATE: A Suddenlink spokesman confirms that Charterhouse is part of the investor group selling shares.

Charterhouse was founded as the U.S. investment arm of U.K.-based Charterhouse Bank in 1973, according to the firm’s web site. The PE firm became independent in the mid-1980s and raised its first fund, Charterhouse Equity Partners LP, in 1989.

The PE firm targets the middle market and focuses on sectors such as business services, healthcare services and consumer products and services. Charterhouse seeks to invest in businesses with enterprise values between $50 million and $300 million, the firm’s web site says.

Officials for Charterhouse couldn’t be reached for comment.

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