(Bloomberg) -- Buyout firm Advent has started canvassing investors for a new flagship fund, which could be of similar size to its previous record-setting $25 billion vehicle, according to people familiar with the matter.
The private equity firm has been holding preliminary meetings with its limited partners since last month, the people said, asking not to be identified discussing confidential information. Advent is targeting a size in the mid-$20 billion range for the new fund, they said.
Deliberations are ongoing and no final decisions on the size or timing of the fundraising have been taken, said the people. A representative for Advent declined to comment.
Advent in 2022 raised $25 billion for its biggest private equity fund on record. It’s among a select number of buyout firms that have been able to amass $20 billion-plus vehicles. Last year, CVC Capital Partners Plc raised €26 billion ($27.5 billion) for the world’s biggest-ever buyout pool, defying a challenging fundraising environment.
At a time when many alternative investment firms are looking to offer investors a range of strategies beyond leveraged buyouts, Advent is choosing to remain focused on its traditional model of taking controlling stakes in companies.
Advent, which is majority-owned by its partners, is also contemplating setting up an investment vehicle targeting mid-sized transactions as it looks to bolster its core private equity business, managing partner John Maldonado told Bloomberg News in a recent interview.
The US buyout firm’s efforts could be met with a more choppy fundraising environment unlike the buoyant market for its last flagship fund two years ago. Investors are now turning more discerning about how private equity firms allocate money amid declining payouts and over-allocations to the sector in recent years.
Advent’s differentiated pure-play private equity strategy may help it stand out in the market, one of the people said. The firm has stepped up monetization, realizing over $7 billion this year, during which it has also invested more than $6 billion.
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