NEW YORK (Reuters) - Private equity firm Vestar Capital Partners said on Monday it had wrapped up fundraising for its sixth fund, securing only $804 million from investors, a fraction of the $3.5 billion it was hoping to raise three years ago.
Vestar's fundraising woes highlight how private equity investors are becoming increasingly selective in their commitments to fund managers. Money is piling into buyout firms with strong track records at the expense of laggards.
Vestar's latest fund, Vestar Capital Partners VI, was looking to raise $3.5 billion, according to a presentation on the website of University of Missouri System, an investor.
But the firm's predecessor fund, Vestar Capital Partners V, which raised $3.7 billion in 2005, was marked at its investment cost as of the end of December 2012, according to Washington State Investment Board, another Vestar investor.
Private equity funds that completed fundraising in the second quarter of 2013 secured a total of $122 billion, the highest amount since the fourth quarter of 2008, although the number of these funds went down to 154 from 241 a year ago, market research firm Preqin said on Monday.
Just ten private equity funds accounted for 55 percent of the capital raised in the second quarter according to Preqin, including blockbuster funds from Silver Lake Partners LP, Riverstone Holdings LLC and Cinven Ltd.
Vestar said it had promoted two of its co-founders, Norman Alpert and Robert Rosner, to co-presidents. It lost another co-founder Sander Levy, earlier this year, who left to help start another buyout firm, Bridge Growth Partners LLC.
Vestar Capital Partners VI will make equity investments in the range of $50 million to $150 million in U.S.-based middle-market companies that have value, including debt, ranging from $250 million to $750 million.
Vestar's current and past investments include consumer and pet food company Del Monte Foods Co, financial advisory and investment banking firm Duff & Phelps Corp and frozen food maker Birds Eye Foods Inc.
(Reporting by Greg Roumeliotis in New York; Editing by Tim Dobbyn)
DALLAS (AP) — The attorney general of Texas and counterparts in other states joined a U.S. Department of Justice review of the proposed merger between American Airlines and US Airways.
A spokesman for Texas Attorney General Greg Abbott says that Texas and 18 other states entered the federal antitrust review. He declined further comment.
The companies announced in February that they planned to merge in a deal that would create the biggest airline in the world.
Members of Congress have raised concern that if combined, American and US Airways would control about 70 percent of the takeoff and landing slots at Reagan National Airport outside Washington, D.C.
(Reuters) - The British government is set to name Rothschild to advise on a potential break-up of Royal Bank of Scotland , the Financial Times reported on Monday.
Rothschild beat competition from Deutsche Bank and Bank of America Merrill Lynch at presentations last week and its role as adviser could be announced as soon as this week, the newspaper said, citing people close to the situation.
Finance Minister George Osborne said last month he would examine whether to split RBS -- 81 percent owned by the government and still lumbered with toxic loans from a boom-era property binge in the UK and Ireland -- into a good bank and hive its soured assets off into a so-called "bad bank.
Rothschild is expected to begin its study on the potential split immediately, with a view to completing it by September, the FT said. It added that the Treasury is also expected to pick an asset valuation specialist to go through RBS' loan book.
"The government will set out more details on the review of RBS assets in due course," a Treasury spokesman said via email.
RBS and Rothschild declined to comment.
(Reporting by Abhishek Takle in Bangalore; Editing by Dan Grebler)