Clearlake Doubles Up with Fund VII

Clearlake Doubles Up with Fund VII

Clearlake's earlier fund was raised in April 2020 and through year end 2021 is reporting a gross IRR of 86.9% (78.8% net)

Clearlake Capital Group has closed its seventh private equity fund at its hard cap with $14.1 billion in committed capital. The new fund, Clearlake Capital Partners VII LP, had an initial target of $10 billion and was significantly oversubscribed.

Both new and existing limited partners invested in Fund VII including more than 300 institutional public and corporate pension funds, sovereign wealth funds, insurance companies, foundations and endowments, and family offices.

“The support from both existing and new limited partners is especially humbling given the backdrop of the last two years, and we’re grateful for their ongoing support,” said Behdad Eghbali, a co-founder and managing partner at Clearlake.

Platform investments for Fund VII include Springs Window Fashions, a Wisconsin-based provider of custom and stock window coverings and drapery hardware (July 2021); Mold-Rite Packaging, a New York-headquartered manufacturer of rigid plastic packaging (September 2021); Cornerstone OnDemand, a California-headquartered provider of cloud-based SaaS talent management software (October 2021); Concert Golf, a Florida-based operator of private golf and country clubs (April 2022); Kofax, a California-based provider of digital workflow automation software (April 2022); Discovery Education, a North Carolina-based provider of K-12 digital curriculum (March 2022); Intertape Polymer Group, a Montreal-based provider of pressure-sensitive and water-activated tapes and labels (March 2022); and Quest Software, a California-based provider of software used to manage infrastructure systems, data and applications (March 2022).

Clearlake’s earlier funds, Clearlake Capital Partners VI LP, closed in April 2020 at its hard cap of $7 billion; and Clearlake Capital Partners V LP, closed in March 2018 with $3.6 billion in commitments. At year-end 2021, Fund V has a gross IRR of 65.1% (57.7% net), with a gross multiple of 3.9x (3.2x net), and Fund VI has a gross IRR of 86.9% (78.8% net), with a gross multiple of 1.8x (1.6x net).

Clearlake invests in industrials and energy, software and technology-enabled services, and consumer sectors. The firm was co-founded by José Feliciano and Behdad Eghbali in 2006 and is headquartered in Santa Monica, California with an additional office in Dallas, Texas. With the close of Fund VII, Clearlake now has more than $72 billion of assets under management.

Credit Suisse was the placement agent for Fund VII and Kirkland & Ellis provided legal services.

© 2022 Private Equity Professional | June 7, 2022

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