Consistent track record of profitable funds
A filing with the Securities and Exchange Commission indicated that Hellman & Friedman Capital Partners VIII had raised $9.69 billion so far. But investors say that the fund will handily hit its $10.25 billion hard cap within in the next few weeks. These investors added that the $10.25 billion wouldn't include the commitment from Hellman & Friedman itself, which is expected to be north of $400 million.
A spokeswoman for Hellman & Friedman declined to comment on the fundraising.
Fund VIII received major support from at least one big return investor. Washington State Investment Board , which has backed at least two other Hellman & Friedman funds, approved a commitment of up to $600 million to Fund VIII.
Fund VIII also attracted commitments from limited partners including Los Angeles County Employees Retirement Association and Pennsylvania State Employees' Retirement System.
According to board documents from WSIB, Fund VIII is earmarked for equity investments of $300 million to $1 billion, in North American and European deals with an enterprise value of between $500 million and $4 billion.
Investors credit the fundraising success in large part to a consistent track record of profitable funds. As of March 31, Hellman & Friedman Capital Partners VII, an $8.9 billion fund raised in 2011, generated an 8.6% net internal rate of return, according to the performance data from the Washington State Investment Board . Meanwhile, Hellman & Friedman Capital Partners VI, a $8.4 billion fund raised in 2007, was producing a 12.4% net IRR as of the same date.