CD&R nears $5bn target for Fund IX

The firm is expected to reach its $6bn hard-cap during the first quarter of 2014.

Clayton Dubilier & Rice has collected about $4.65 billion for its ninth fund, according to documents filed with the US Securities and Exchange Commission Tuesday. Fund IX will also include a general partner commitment of $250 million, sources previously told Private Equity International,bringing the fund’s total to about $4.81 billion so far.

Fund IX has a $5 billion target and is expected to reach its $6 billion hard-cap during the first quarter of 2014, according to the firm. Fund IX launched in March 2013 and held an initial close on about $3 billion last August.

CD&R’s Fund VIII closed on $5 billion in 2009 and was generating a net internal rate of return of more than 20 percent and a 1.7x multiple as of 30 June 2013, Bloomberg reported. The fund received commitments from limited partners including the New Mexico State Investment Council, Yale University endowment and HarbourVest Partners, according to PEI’s Research and Analytics division.

In 2013 CD&R made four acquisitions in 2013, including emerging services business Brand Energy and Infrastructure Services which it acquired for $2.5 billion. During the past five years, CD&R has invested about $6 billion in 16 companies, according to the firm.

CD&R returned about $3.4 billion last year, including its full exit of rental car company Hertz, which generated a 2.6x return multiple and the initial public offering of Envision Healthcare, which has traded at more than 5x CD&R’s cost.

New York-based CD&R has managed more than $18 billion in 56 investments since it was founded in 1978.