Doughty Hanson halts fundraising

Alice Murray
14 April 2015

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Doughty Hanson has ceased its current fundraising efforts and will instead focus on its existing portfolio.

The GP had been on the road for a couple of years for its sixth vehicle, aiming to raise in the region of €2.5bn. It is understood Doughty Hanson had found the fundraising process to be challenging. The private equity firm had notably been experiencing some levels of uncertainty following the sudden death of co-founder Nigel Doughty in February 2012, aged just 54.

Following his death, the firm was forced to restructure its partnership model. The restructure saw the GP create a new firm, wholly owned by an employee trust alongside Richard Hanson. While Doughty Hanson's LPs supported the restructure, and appeared committed to the firm's future, it would seem that uncertainty has prevented major commitments.

The decision comes after Doughty Hanson had offered investors in its 2004 and 2007 funds the option to sell off stakes through stapled secondaries deals, whereby LPs selling out simultaneously commit to the new fund.

For the time being, the GP will focus on its existing investments – its current fund (Fund V) has already returned nearly 100% to LPs. However, there are still divestments to be made from both Fund IV and Fund V including Balta, KP1, TV3, Zobele, Asco, Eurofiber, LM Wind Power and TMF Group.

Doughty Hanson will also undergo a review period, during which it will work with LPs and employees to determine whether the firm will raise another fund.