Madison Dearborn strikes $5bn to close its second-biggest fund to date


US private equity major Madison Dearborn has struck a $5bn final close for Fund VIII to seal the second-biggest raise in its history.

The firm’s website confirms the vehicle is currently being used to make investments. Madison signified to the SEC in October 2019 that it was looking to raise Fund VIII, eyeing just above the $4.43bn it gathered for its predecessor vehicle from 2016.

Madison previously raised $6.5bn for its 2006-vintage Fund V, and had hoped to collect up to $10bn for that vehicle’s successor, but ended the Fund IV raise on just $4.1bn amid turmoil caused by the global financial crisis.

AltAssets revealed last summer that the fund was within touching distance of its $4.5bn goal after passing the $4bn mark.

The firm has already tapped the fund for six investments according to Buyouts, which cited unnamed sources.

It added that big pension funds including CalPERS, which committed $400m, had backed Fund VIII.

The report said Fund VI had a return multiple of 2.2x and 23.5% IRR as of March, while Fund VII was tracking at a 1.5x multiple and 15.8% IRR.

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