Oak Hill gathers $3.8bn for Fund III

Oak Hill Capital Partners has held an interim close for its third private equity fund on $3.8 billion, according to a source familiar with the matter.

The fund is targeting $4 billion and expects to hold a final close in February 2009.

Oak Hill’s previous fund closed on $2.5 billion in 2005, which included $500 million from Bass and his associates.

Oak Hill was formed in the 1980s as Robert Bass’ private investment vehicle. In 1999, Bass launched Oak Hill’s first institutional private equity fund, a $1.6 billion fund designed to be the successor for his private investment firm’s private equity business.

The firm's six industry teams invest in basic industries, technology, business and financial services, consumer, retail and distribution, healthcare and media and telecom.

Most recently, Oak Hill purchased eight television stations from media giant News Corp for roughly $1.1 billion. The transaction, completed in July, was financed by $565 million in a senior secured credit facility and $200 million in a senior notes offering underwritten by Deutsche Bank, UBS, Banc of America and BNP Paribas.