Here’s more proof of how tough fundraising is (after yesterday’s proof that it’s not tough for everyone). Two funds which appear to be safe bets are struggling. One has at a couple of successful exit under its belt, the other focuses on banks, a timely strategy.
Blue Wolf Capital, a New York-based private equity firm, has raised $112.1 million from nine investors toward Blue Wolf Capital Fund II LP. The firm raised an additional $4.1 million from nine investors in a separate feeder fund.
That fundraise seems to be a problem because the firm held a close on $100 million all the way back in September 2008. Only raising $12 million more in a year suggests to me that the firm will likely lower its fundraising goal from $250 million.
The firm’s first fund, raised in 2006, had $40 million in commitments under the name Partnership Equity. Its investment in Montauk Energy Capital won to a Buyouts magazine Small Market Deal of the Year award in 2007.
Bank holding company Castle Creek Capital Partners has raised $50.7 million toward Castle Creek Partners IV LP. The fund launched back in in June 2008 and has a $500 million target. The firm has been around since the late 90s, when it raised its first two funds. Those were wound down right before the buyout boom launched, and now the firm has returned to market to capitalize on the all failing regional banks out there. Perhaps the slow run of it is due to the fact that other private equity firms have made investments in banks, making Castle Creek’s exclusivity as a bank holding company less exciting. Then again, if the FDIC’s new rules pass, Castle Creek’s popularly could surge.