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Hellman & Friedman closes epic Fund VIII fundraising

Hellman & Friedman has closed its eighth buyout fund on $10.9 billion, blowing out its $8.9 billion target in under a year.

Fund VIII’s total includes $10.25 billion from external limited partners, $500 million in GP commitment and the balance from ‘friends and family’ investors.

The San Francisco-based firm had raised at least $10 billion by October, according to a filing with the U.S. Securities and Exchange Commission. However, limited partner sources told peHUB the firm was essentially done fundraising in September and was keeping the fund open for some last minute LPs to close commitments to the investment vehicle.

Hellman & Friedman Capital Partners VIII enjoyed so much demand from investors the firm had to cut back some investors’ preferred commitment amount, as well as having to turn away some potential investors who wanted in.

The firm allowed in a “select few new LPs” into Fund VIII, according to a person with knowledge, indicating the firm was able to raise the bulk of the fund from existing LPs.

“Our focused and differentiated strategy allows us to fully concentrate our resources on finding the highest quality companies and working with their outstanding management teams to accelerate growth,” said Patrick Healy, Deputy Chief Executive Officer of Hellman & Friedman, in a statement.

The firm makes big equity investments of $300 million to $1 billion in growth companies in industries like software, internet, digital and traditional media, financial services, business, marketing and information services, energy and industrials and healthcare. Hellman & Friedman has raised more than $35 billion of committed capital since inception in 1987.

Simpson Thacher & Bartlett LLP and Walkers worked as legal advisors to Hellman & Friedman.

Photo courtesy of Shutterstock.