Madison Dearborn has been raising its sixth fund for just about as long as I’ve been at Thomson Reuters. But unlike my career (knock on wood), Madison Dearborn Capital Partners VI LP is approaching its close.
According to a source familiar with the situation, the Chicago-based buyout firm is planning a final close in April, despite being well below its target.
The firm entered the market in 2007, seeking $10 billion. That figure was lowered to $7.5 billion in 2008, when Madison Dearborn had gathered $4 billion in commitments. No new money has rolled in the door since then, and the firm is scheduling its final close for April. There is still a small possibility the firm could gather a few more commitments or get another extension, but considering the the lack of new commitments last year, it’s not likely.
In June of 2009, the firm lost David Mosher, a co-founder who focused on investor relations. Mosher retired and was replaced with Credit Suisse alum John Knutsen and David Pequet, who serve as the respective head of investor relations and vice president. Credit Suisse served as the firm’s placement agent for fund six.
Madison Dearborn has invested $540 million from the new fund, acquiring Weather Investments, an Italian telecom company, and NextG Networks, a California-vbased provider of wireless antenna systems. Last week the firm exited its investment in Tuesday Morning Corp., a retailer it acquired in 1997. The firm took Tuesday Morning public in 1999 and sold its final shares as part of the liquidation of Madison Dearborn’s second fund, a 1996 vintage. Tuesday Morning’s shares quintupled in value in the past year, according to Dow Jones.