Eight years after raising a reported $3.8 billion for its previous flagship private equity fund, Oak Hill Capital Partners has closed its Fund IV on $2.65 billion, besting an initial target of $2 billion and a hard cap of $2.5 billion. The decrease in size is driven in part by a desire to deploy the fund’s capital more quickly, according to an earlier Reuters report.
Oak Hill used capital from its third namesake fund for several major deals, including a $570 million SBO of Dave & Buster’s and an $815 million takeover of The Hillman Companies, both in 2010. But the firm’s activity has definitely tailed off. Since completing 16 deals in both 2010 and 2011, Oak Hill has finalized nine investments or fewer every year, per PitchBook data.
Oak Hill Capital Partners III had an IRR of 8.99% as of the end of 1Q, according to the PitchBook Platform, in the bottom half of its peer benchmark. Some of the fund’s other relevant multiples include a TVPI of 1.51x and an RVPI of 0.59x.