CD&R Fund XI - $10bn Already Raised / $13bn Target
Hi everyone I was wondering what your thoughts are on CD&R given they are raising a $13bn fund. Given the last fund in 2017 was $10bn are they considered a MF now? Any insight on hours, culture, reputation and do they do off cycle recruiting?
I was reading that the last two funds according to CALPERS are performing around 20% IRR.
Thank you for your thoughts and time in advance!
Very diligent investing process with a focus on cheaper industries and operational improvement; at times in partner-with-existing-shareholders structure.
Regarding the MF categorization, it seems that the lines are very blurred at this point as funds such as H&F, Advent, CDR and others are significantly outraising historic MFs like Bain and TPG even though many would not characterize the former as MFs. Does it make sense? No. Is it still common lingo? Yes.
Also note, raising a massive fund does not necessarily bode well for a fund long-term, e.g. Advent where larger funds and worse performance seem to go hand-in-hand recently.
Common lingo by whom? People on this website? No one who is actually in the industry and competing in processes for 1-10bn tev assets calls Hellman an upper middle market fund. You would get laughed at when they show up to processes for 5bn tev companies.
Sorry for the confusion, more so meant that they are not traditionally classified as MFs, not that people really go out of their way to categorize them/call them UMMs.
probably gonna be rough to get in off-cycle, read some of those associate bios
Good lord, almost every U.S. associate is from GS, MS, JPM, or Evercore.
Have the same question. Always though 10bn+ was a MF. maybe the lines have been blurred since Apollo and Blackstone raised 20bn+ funds?
Megafund is a made up term so it's really whatever you want it to be
Anyone have experience competing against them on a process? How far will they go for an asset they really like vs. drop out at a certain price point?
bump
I never see this mentioned but when a MF goes out and raises "$15bn PE Opportunities Fund VII" while still having a few prior vintages still in the harvest phase (i.e. $5bn Opportunities V from 2014, $7bn Opportunities VI from 2016 etc.)...isn't there a good portion of un-exited investments from prior vintages just being rolled over into the new $15bn vehicle (functionally - LP stakes from Fund VI are being purchased by the same LP's commitment in Fund VII). So the incremental new capital being committed can be ambiguous, and could be as low as a few billion of new money in that $15bn pool if they're known to hold well past typical PE maturity (thus functioning like an evergreen structure) or it could be $15bn of completely new money?
Is the rolled portion of new PE fund raises ever discussed? I did a quick search and nothing showed up but my friends in PE led me to believe a good portion is always rolled.
Very interesting point, would like to know the same if someone can answer
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