Advent raises $10.8b for new buyout fund

The fund - Advent GPE VII- was subscribed by existing investors and also received commitments from a number of new LPs. It will focus primarily on the developed markets of North America and Western Europe and selectively on other global markets. The fund has already closed one investment- Serta & Simmons Bedding - and has agreed to invest in two other businesses.

"We are very pleased with the strong reception that Advent GPE VII has received in a highly competitive and demanding private equity fundraising environment," David Mussafer, an Advent managing partner, said in a statement. "Our success is the result of our partnership approach, singular focus on private equity and the hard work of our investment professionals, management teams, operating partners and loyal limited partners."

The strong track record of the US private equity player has played a role in boosting the fundraising process. Advent raised EUR6.6 billion for its sixth global private equity fund, which closed in 2008.

According to one of its LPs, California State Teachers' Retirement System (CalSTRS), the fund has delivered a 12.4% annualized return to the end of March, compared with a 10.8% return from CVC's 2008 fund and a 5.8% return from the Permira 2006-vintage fund.

A number of private equity firms have raised funds since the global financial crisis. In January, Blackstone held a final close of its sixth fund at $16 billion after four years in the market. The fund was below the original target of $20 billion but slightly larger than its Fund V, which was closed at $15.6 billion in July 2006.

In May, Bain Capital set a target of $6 billion for its new global buyout vehicle, compared to Fund X, the firm's previous global fund which raised $10.7 billion. Apax Partners, Cinven and Permira - which have all started fundraising for their next vehicle before Advent - are still in the market.

According to Preqin, the buyout sector has raised less than $300 million in the last 12 months. In 2007 and 2008, buyout funds brought in $600 billion a year.

Advent International is in the process of opening a new office in Shanghai, which will extend its global reach to 17 countries.

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• Topics
• Fundraising
• Buyout
• Fundraising
• Bain Capital Asia
• Advent International
• Permira Advisers
• CVC Capital Partners
• buyout