Mount Kellett Capital Management LP, the investment firm founded by two former Goldman Sachs Group Inc. executives, plans to raise a new fund matching the $4 billion gathered in 2012 by its last global special-situations vehicle, according to two people familiar with the matter.
Mount Kellett Capital Partners Fund III is targeting a first close in the third quarter, said the people, who asked not to be identified because the information isn’t public. The firm has selected Park Hill Group LLC, the placement agent arm of Blackstone Group LP, to help raise money, the people said.
Mount Kellett, based in New York, will be joining a competitive fundraising market in which private-equity firms are vying for a limited pool of investor money. A record 1,949 funds were seeking $797.1 billion as of the end of last year, according to data by London-based researcher Preqin Ltd.
Dan Gagnier, a spokesman at Sard Verbinnen & Co., declined to comment on fundraising plans on behalf of Mount Kellett.
Mount Kellett, which manages about $7 billion, makes opportunistic and special-situations investments globally across asset classes, industries and geographies, according to the firm’s website. Special-situations investments typically involve companies going through an unusual event such as a spinoff, financial restructuring or bankruptcy.
The firm’s investments include private equity, corporate debt, secured loans, convertible bonds, preferred and common shares, real estate and commercial mortgages, according to its website.
Mount Kellett purchased Sofitel Paris Le Faubourg in February from hotel operator Accor SA for 113 million euros ($147 million). As of December, the firm was among the largest bondholders of Shanghai-based solar manufacturer Suntech Power Holdings Co., which entered bankruptcy last month.
The firm took more than a year to raise Fund II, which closed in March 2012. The fund was producing a net internal rate of return of 0.5 percent and about 70 percent of the money raised was invested as of Dec. 31, according to a person briefed on the matter.
Mark McGoldrick and Jason Maynard founded Mount Kellett in 2008. McGoldrick was co-founder and head of the special-situations group at Goldman Sachs from 1997 to 2007. Maynard was previously the head of the Asia special-situations business at Goldman Sachs. Nick Weber, who leads Mount Kellett’s European business, also came from Goldman Sachs, where he was co-head of the European special situations group.