TowerBrook Is in Talks to Raise $5.9 Billion for Its Next Fund

  • Firm to continue core investment strategy with new pool
  • Dry powder reached highest level since 2007 with $1.6 trillion

TowerBrook Capital Partners is in early talks with investors to raise as much as 5 billion euros ($5.9 billion) for its next private equity fund, people familiar with the matter said.

The fund will be used to continue TowerBrook’s core investment strategy of investing in large and mid-market companies facing complex structural issues, said one the people, who asked not to be identified as the discussions are private. TowerBrook looks for investments that may have a distressed parent company or be facing disagreements between shareholders and management, according to its website.

No final decisions have been made and the target and timing of the next fund may change, the people said. This will be the fifth fund for the London- and New York-based firm, which raised $3.5 billion for its fourth fund in 2013. That pool was generating a 35 percent annualized return after fees at the end of 2016, ranking among the top 25 percent of similar funds, according to data compiled by Bloomberg.

A representative for TowerBrook declined to comment.

Private equity firms have an abundance of cash after attracting record levels of investment. Dry powder, the money firms have raised and not yet spent, reached $1.6 trillion in August, the highest level since at least 2007, according to data compiled by Preqin.

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