© The Financial Times Ltd 2015 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
February 7, 2013 11:28 pm
Defying a depressed fundraising market, TowerBrook, the British-American private equity firm that used to own shoe designer Jimmy Choo, has raised $3.5bn, beating its objective in less than a year.
The new fund, which targeted $3bn, was “considerably oversubscribed”, the firm told its investors in a communication today. The firm reached its hard cap, or the maximum it had set for the size of its fund, after receiving subscriptions in excess of $5bn. TowerBrook, headed by Ramez Sousou and Neal Moszkowski, had previously raised a $2.8bn fund in 2008.
The rapid fundraising contrasts with the struggles of some of the largest private equity firms, as investors rush to back the top performers, leaving others grappling with reduced pledges in following the financial crisis. Permira, the London-based owner of German clothing designer Hugo Boss, has been marketing a €6.5bn fund for the past 17 months and has yet to secure €2bn. US media-focused firm Providence Equity Partners reduced its target to $5bn after aiming for $8bn.
Meanwhile London private equity firm Advent International amassed €8.5bn in less than a year in 2012, after initially targeting €7bn.
“The investing environment in which we operate today is characterised by an unusual combination of extraordinary monetary liquidity, fiscal contraction and economic malaise,” TowerBrook told its investors.
“Under these circumstances, we continue to act with exceptional caution and discipline, seeking to access capital markets where advisable for our existing portfolio, pursuing liquidity for the funds where possible and selectively pursuing new investments consistent with our strategy.”
The firm’s fund has the ability to invest across the capital structure of companies in Europe and the US. The previous fund posted a 19.4 per cent annual return as of June 2012, according to the California Public Employees’ Retirement System, an investor in the fund.
Copyright The Financial Times Limited 2015. You may share using our article tools.
Please don't cut articles from FT.com and redistribute by email or post to the web.