Wasserstein Fund IV is said to raise over $790 mln

  • Wasserstein Partners IV began fundraising in 2015 with a $750 mln target
  • Wasserstein, MidOcean agreed to sell Penton for $1.56 bln
  • Wasserstein family no longer owners of the management company as of Fund IV: source

Wasserstein & Co, which just scored a big exit with its sale of Penton, closed its fourth fund in August at more than $790 million, a source familiar with the transaction said.

The $790 million pool is the largest the firm ever raised, the source said.

New York-based Wasserstein began fundraising for the pool in summer 2015, Buyouts reported. The Fund IV target was $750 million; Lazard was the placement agent, the story said.

The fourth fund is nearly double the firm’s prior pool. Wasserstein Partners III collected $403 million in commitments when it closed in 2014. Including co-investments the fund totaled $750 million. Fund III  is generating a net IRR of 26 percent, the source said.

Fund IV represents a shift in ownership. Bruce Wasserstein, the legendary investment banker, founded the PE firm that bears his name in 2001. He passed away in 2009.

The Wasserstein family continued as majority owners of the management company until now. The Wasserstein family is no longer an owner but remains an LP of Wasserstein Partners IV, the source said. The shift occurred during fundraising for the fourth pool, the person said.

Management at Wasserstein — which includes Anup Bagaria, co-managing partner; George Majoros, co-managing partner; and Robert Fogelson, senior partner — remains the same. Senior managers, the source said, have always been investors in Wasserstein funds.

Wasserstein’s focus also hasn’t changed. Like its predecessor, Fund IV targets investments in media and communications, consumer products, as well as water and industrial. The fourth pool acquired Northstar Travel Group in June.

Earlier this week, Wasserstein and MidOcean Partners agreed to sell Penton to Informa plc for $1.56 billion. Wasserstein is making 4.2x its money while MidOcean will see a 3.5x return with the Penton sale, Buyouts reported.

Action Item: Contact Wasserstein: +1 212-702-5600

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