Irving Place Fundraising Delayed for At Least a Year

Irving Place Capital doesn’t expect to begin fundraising for its next pool for at least another year, a source tells peHUB.

New York-based Irving Place, the former Bear Stearns Merchant Banking, had been expected to come to market late last year. The target for fund IV was anticipated to be $1.5 billion to $2 billion, peHUB has reported. Those plans are apparently on hold. Irving Place is not thinking about a new fund for at least another 12 to 15 months, the source says.

The delay comes after LPs earlier this year granted Irving Place a two-year extension to invest its current fund, a 2006 vintage, until February 2015, sources says. The extension was the second green-lighted by the firm’s investors. Previously, the LPs had given the firm a one-year extension on Fund III’s investment period until 2013, peHUB has reported.

Irving Place, because it doesn’t have to worry about deadlines, is currently focusing on its portfolio and making new investments, a source says.

The firm’s last fund, Irving Place Capital Partners III LP, collected $2.7 billion in 2006. Irving Place has about 25% of Fund III left to invest, a different source says.

Before it begins fundraising, Irving Place is trying to accumulate a few strong exits from Fund III to gain momentum, one placement agent says. Irving Place on Monday agreed to sell Multi Packaging Solutions to Madison Dearborn Partners. Irving, along with Oaktree Capital Management, also announced last week that they  were selling Chesapeake to the Carlyle Group. Multi Packaging, however, came from Irving’s fund II, while fund III invested in Chesapeake, according to LBO Wire.

“They need big, very profitable exits,” the placement source says.

Irving Place officials could not immediately be reached for comment.

Photo courtesy of Shutterstock