Strong demand drives Clearlake through fundraising

Clearlake Capital Group is moving quickly through fundraising on its next flagship vehicle and expects to have a strong first close near its target, according to a person with knowledge of the fundraising.

The firm is expected to hold a first close this month on Clearlake Capital Partners IV, which is targeting $1 billion with a $1.25 billion hard cap. The person said the first close will be near the target.

Fund IV could hold a final close this summer.

Park Hill Group is working as placement agent on the fundraising.

Clearlake pre-marketed the fund for months and sources said Fund IV is garnering strong demand.

Along with Fund IV, Clearlake for the first time is raising a $500 million sidecar vehicle, Clearlake Opportunity Partners, for non-control, credit investments. The strategy will be managed by Clearlake’s main deal team. That fund has attracted about $400 million and is expected to hold a first close in the summer, the person said.

Clearlake has posted strong performance. It’s 2012 vintage Fund III, which closed on more than $785 million, beating its $600 million target, was generating a 34.6 percent net IRR and a 1.3x multiple as of Sept. 30, according to the California Public Employees’ Retirement System.

Fund II, which closed on more than $410 million, was producing a 22.8 percent net IRR and a 1.6x multiple as of Sept. 30, CalPERS said.

Clearlake, founded by Steve Chang, Behdad Eghbali and José Feliciano, will move forward with its fresh capital without Chang, who has left the firm, Buyouts previously reported.

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