New York buyout shop Clayton Dubilier & Rice are fast approaching their fundraising goal for their ninth fund, performing a second close with the fund now standing at $4.9billion. CD&R had targeted raising $5billion before this closure, and are reportedly targeting a total of $6billion by their final closure, which will be at the conclusion of the first quarter of the year.
This fund has been open since March 2013, and sources close to the buyout shop told Private Equity News that CD&R have always been confident of raising their target. Having raised around $3billion by August, CD&R have since been looking to use the success of this fundraiser to bring in other investments, and are hoping that with the majority of funds raised they will attract investors looking for good opportunities in the early part of 2014.
The success of CD&R’s eighth fund has been cited as a reason for their success in respect of this fundraiser. LBO Wire reported a 20% rate of net internal return and a multiple of 1.7 for 2013, an improve performance on 2012 (17.6% and 1.35 respectively).
Successes for CD&R in 2013 have come predominantly from two big exits and sales. The first exit was from car rental giant Hertz. CD&R exited by selling their stake through a number of public offerings, generating returns of 2.6 times that of the initial investment.
They also sold AssuraMed to Cardinal Health for $2.07billion, returning 3.3 times the investment. In total, CD&R have returned $8billion to investors since 2011, a healthy figure that has helped them to continue raising large funds and enabling the group to enjoy high confidence levels from investors and the companies they invest in. CD&R have not publicly commented on the areas they are planning to invest following closure of this fund.