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Centerbridge Partners is currently in the process of raising funds for its fifth flagship private equity fund. This latest endeavor aims to secure $3.5 billion from investors, which is notably lower than the amounts gathered for their previous funds.
A report by Buyouts Insider highlights that a combination of factors, including limited partner (LP) overallocations and concerns about liquidity, has led many general partners (GPs) to revise their fundraising targets downward in the past year. However, Centerbridge's decision to lower their aspirations for Fund V is particularly noteworthy.
Comparing this target to their previous fund, Fund IV, it appears to be in line with the $3.3 billion successfully raised for that fund. It's worth noting that Centerbridge initially set a higher target of $6 billion for Fund IV, showcasing a significant adjustment in their expectations. Going further back, Fund III, which concluded in 2014, managed to amass over $6 billion in capital, and Fund II from 2011 exceeded its initial target of $3.75 billion by raising $4.4 billion. These historical figures provide context for the evolving fundraising landscape in the private equity industry.