Clearlake closes Fund III above hard-cap

The Los Angeles- and New York-based firm has raised more than $785m for Fund III, nearly twice the size of its $410m second fund that closed in 2010.

Clearlake Capital Group has closed its third flagship fund on more than $785 million, exceeding its $600 million target and $750 million hard-cap.

Fund III was in market for roughly six months and will invest using the same strategy as the firm’s prior funds, backing lower mid-market companies experiencing financial, operational, or structural change in a variety of industries. Clearlake typically invests in the business services, consumer products, retail, energy, power, industrials, technology, communications, defense, public safety, healthcare and media sectors. The firm has deployed between 5 and 10 percent of Fund III to date, and now has $1.4 billion of capital under management.

“In this difficult fundraising market, we are grateful to receive such significant support from returning and new investors for our third private investment fund,” founding partner at Clearlake José Feliciano said in a statement.

Park Hill Group and Aqueduct Capital Group acted as placement agents for Fund III. Clearlake’s prior fund collected $410 million in 2010. The higher fund size for Fund III will bring Clearlake's average deal size from roughly $40 million to between $50 million and $60 million.

Limited partners in Fund III include the Los Angeles County Employees’ Retirement Association, the State of Wisconsin Investment Board and the New York State Teachers’ Retirement System, according to data provider PrivateEquityConnect.

Roughly 40 percent of  LPs in Fund III are new investors and approximately 25 percent of Fund III investors are LPs based outside the US. Clearlake attracted commitments from investors in Australia, Canada, Asia and the Middle East. The firm received re-up commitments from the vast majority of LPs in Fund II.

Clearlake’s investment professionals are capable of performing buyout, acquisition, carve-out, growth capital, platform, credit, recapitalisation, reorganisation and turnaround transactions, according to its website. 

Last month, the firm acquired US-based watch retailer Swiss Watch International, investing in the company from multiple funds, a spokesperson told Private Equity International at the time. Clearlake made six investments in 2012 and fully exited three companies, plus an additional two partial realisations.

Clearlake was founded in 2006 and maintains offices in Los Angeles and New York.