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Providence plans imminent $5bn final close for Fund VII

2 Jul 2013

dollar 20_sqMedia-focused private equity firm Providence Equity Partners is reportedly ready to close its seventh fund on $5bn, well below its original $8bn target.

The US firm is planning to hold the close within days according to Dow Jones.

Providence, which makes mid to large-cap investments in media, communications and IT companies, has apparently endured a slow 12 months of fundraising having reportedly gathered about $4.5bn in May last year.

That put it three-quarters of the way to its reduced target of $6bn, which was revised down from $8bn amid the volatile fundraising environment

The firm closed its previous fund on more than $12bn in 2007, two years after raising a $4.2bn buyout vehicle.

Data from the California Public Employees Retirement System, which invested in Providence previous two funds, indicates Fund VI had a net IRR of 4.1 per cent at the turn of the year compared with a net IRR of 2.8 per cent for Fund V.

In May Providence emerged as the latest private equity major to target a yuan-denominated fund as China relaxes its restraints on foreign capital flows.

The firm is set to join a host of global buyout houses including The Carlyle Group, Goldman Sachs and TPG Capital in raising a renminbi vehicle according to Dow Jones, which cited people familiar with the matter.

Blackstone and KKR were believed to be in talks with Chinese authorities last July over a “new wave” of renminbi-denominated funds which would improve their competitive clout in the country.

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