* First fund since death of co-founder Hellman
* Prior $8.8 bln fund fell short of $11 bln target
* Latest in a series of big flagship buyout funds
By Steve Gelsi
NEW YORK, April 17 (Reuters-BUYOUTS) - Hellman & Friedman is
seeking a comparable fund size to its flagship vehicle of nearly
$9 billion raised in the midst of the financial crisis, in the
buyout firm's first major capital-raising effort since the death
of co-founder Warren Hellman in 2011.
Hellman & Friedman has been talking to limited partners and
focusing on a recent flurry of its deals, particularly its
exits, a source told Buyouts Magazine.
Among the San Francisco firm's recent deals, The Blackstone
Group and GIC Private Limited said they would pay $750
million for a minority stake in Kronos Inc from Hellman &
Friedman. The transaction, announced in February, valued the
human resources software company at about $4.5 billion. Hellman
& Friedman closed a dividend recapitalization in Kronos as part
of the deal.
Kohlberg Kravis Roberts & Co moved to buy
Sedgwick Claims Management Services for $2.4 billion from
Hellman & Friedman and Stone Point Capital in one of the largest
sponsored M&A deals so far in 2014.
Hellman & Friedman inked a deal last November to buy Applied
Systems from Bain Capital for $1.8 billion. JMI Equity also
invested in Applied Systems.
Hellman & Friedman Capital Partners VII raised more than
$8.8 billion, but fell short of its $11 billion target during a
fundraising period that took place in late 2008 and 2009 in the
wake of the collapse of Lehman Brothers.
"That was a very quick fundraise in trying circumstances,"
said a person familiar with the firm's effort at the time.
CEO Phil Hammarskjold, who joined the firm in 1992, now
heads up the firm, which has raised more than $25 billion in the
past 25 years. It also employs a deep bench of 17 managing
directors, according to its website.
Hellman & Friedman Capital Partners VIII LP marks the latest
in a series of big flagship private equity funds in the past
several months, led by Apollo Global Management LP's
Apollo Investment Fund VIII LP, which took in $18.4 billion, and
Carlyle Group's Carlyle Partners VI LP, which drew in $12
billion. If successful, Hellman & Friedman's fund would outpace
the $7 billion raised for Blackstone Real Estate Partners Europe
IV LP and Brookfield Infrastructure Fund II LP from Brookfield
The 2004 vintage Hellman & Friedman Capital Partners V LP
rang up an IRR of 27.6 percent as of Sept. 30, 2012, for the Los
Angeles City Employees' Retirement System-good enough for a top
quartile performance, according to fund data compiled by
Buyouts. Hellman & Friedman Capital Partners VI recorded an IRR
of 7 percent as of Dec. 31, 2012.
Hellman co-founded the firm in 1984 with Tully Friedman, who
left the firm and founded FFL in 1997. Hellman died at the age
of 77 and was serving as a senior adviser to the firm after
handing over day-to-day operations.
(Buyouts magazine is a Thomson Reuters publication. Editor: