Advent International Is Said Near Close of $26 Billion Fund

(Bloomberg) — Advent International is nearing final closing on a $26 billion acquisition vehicle, creating one of the largest pools of capital in the private equity industry, according to people familiar with the matter.

Sources said that the Boston-based firm, which is mostly owned by its partners, has been raising new funds for about 18 months and is currently approaching its final closing, and asked not to be identified as the matter is still confidential.

Advent raised its last flagship fund in 2022 at $25 billion. A spokesman for the buying house declined to comment.

Led by James Brocklebank and John Maldonado, Advent is known for its focus on acquisitions and has repeatedly raised some of the largest pools of capital in the industry. The closure defies malaise in the private equity sector.

From endowments to pension companies, limited partners have become increasingly selective in implementing their commitments. Private equity funds, in particular, have been under siege by investors to return capital and sell more companies, many of which were acquired at high valuations.

This meant funds had to reconsider their fundraising plans or lower expectations for new funds and returns. Overpayment to companies has led to a massive backlog in the private equity sector on the exit side. Funds put deals on hold as sellers and buyers could not agree on prices, particularly for funds that firms had purchased during the Covid buying frenzy.

Meanwhile, Advent has made some of the biggest debuts in the industry; This includes the sale of TK Elevator, along with Cinven, to Kone Oyi for 29.4 billion euros ($34 billion), including debt. The buyout firm also took gas engine maker Innio Holding GmbH public in a U.S. IPO, with Innio joining a number of industrial companies looking to capitalize on the rise in data center spending.

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