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Madison Dearborn Fund Raising Slower Than Expected In Rough Market For Private Equity

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Madison Dearborn Partners attempt to raise a fresh $10 billion has faltered, with investors committing just $4 billion, according to Bloomberg's Jason Kelly and Jonathan Keehner. The aim, at this point in the fund raising campaign, was to have raised at least $5 billion, according to "the people" who say this kind of thing to reporters.
Although profits at the Madison Dearborn's portfolio companies are said to be ahead of this years targets, the firm has been stung by a dearth of investor interest in private equity and some high profile setbacks. Chief executive officer John Canning Jr. stepped down in November. Pierre Foods, in which Madison Dearborn invested $142 million in equity four years ago, filed for bankruptcy yesterday. Moody's last month lowered its rating outlook for Yankee Candle, which Madison Dearborn bought for $1.4 billion last year. Another 2007 acquisition, the $5.75 billion purchase of asset manager Nuveen Investment, has also run into trouble as the company's profits and assets under management have fallen.

Madison Dearborn Misses Target Amid Nuveen, Yankee Candle Woes