Hellman & Friedman raises $9bn for fund

PRIVATE equity firm Hellman &amp; Friedman (H&amp;F) yesterday said it had raised $8.8bn (&pound;5.5bn) for its latest buyout fund.<br /><br />It also said that co-founder Warren Hellman will step down as chairman and that a new chief executive had been appointed.<br /><br />It had been hoping to raise $10bn to help it focus on large-scale equity-related investments of $300m to $1.2bn in the USand Europe, but fell short of its target with $8.8bn.<br /><br />&ldquo;We feel thrilled with the outcome given the fundraising environment that we&rsquo;re living in right now,&rdquo; said managing director Philip Hammarskjold.<br /><br />The fundraising comes during a particularly tough period to raise cash. Data from London-based private equity firm Preqin yesterday said the third quarter of 2009 was the slowest for private equity fundraising in six years.<br /><br />Meanwhile, Hellman, 75, who co-founded the San Francisco-based firm in 1984, will be replaced as chairman by chief executive Brian Powers.<br /><br />Powers is replaced by Hammarskjold as chief executive. They will all continue to serve on the firm&rsquo;s Investment Committee.<br /><br />H&amp;F, which has investments in companies including stock exchange Nasdaq, photography firm Getty Images and reinsurance firm Paris Re, also said it finished fundraising for its seventh fund, HFCP VII.<br /><br />Another recent management change at the firm was the exit of Jeffrey Goldstein, an executive at H&amp;F who was tapped in July as President Barack Obama&rsquo;s choice for treasury undersecretary for domestic finance. His appointment is yet to be confirmed by Congress.