Hard to believe how quickly we’re moving through November. Hope your week is starting strong.
Surge: U.S.-based private equity and mezzanine fundraising continues to push forward despite the waning year. Fund managers raised a total of $274.9 billion so far this year, adding another $5.4 billion since early November. That’s compared to $178.7 billion at the same time last year, according to Buyouts data.
One of the biggest funds in the latter half of 2019 is Platinum Equity, which is targeting $10 billion and has raised more than $9.3 billion.
Revamp: ACON Investments, based in Washington, is the latest established GP to complete a fund restructuring on an older pool that will give the manager more time to manage older investments.
In this case, ACON restructured its 2013 Fund III, moving seven portfolio companies into a newly created fund with a five-year term. ICG led the deal that included total net asset value of the remaining investments of nearly $600 million, sources told me. Check out my story here.
Fund III closed on $751 million in 2013. LPs in the fund had to option to sell their stakes in the fund, at a reference date of Dec. 31, 2018, or roll into the new vehicle and stick with the GP.
“This is an example of a GP thinking first and foremost about portfolio companies and the right things for those businesses and not wanting to just feel pressure of the artificial 10-year fund life,” a source with knowledge of the deal told me.