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Dec. 11 (Bloomberg) -- Welsh Carson Anderson & Stowe, a private-equity firm that has raised $20 billion since its founding in 1979, is seeking $3 billion to $3.5 billion for its latest fund, according to an investor presentation obtained by Bloomberg News.
Welsh Carson plans to distribute final marketing documents to prospective investors in March and to complete the first phase of fundraising in the second quarter or third quarter of 2014, according to the presentation from the New York-based firm. The amount sought by WCAS XII LP is less than the $4 billion the prior fund gathered in 2009.
The firm, which specializes in investments in health care, information- and business-services companies, is competing for commitments in a crowded market where a record 1,990 private- equity funds were seeking a combined $721 billion as of the start of October, according to London-based research provider Preqin Ltd. The new fund will mostly make control investments primarily in U.S. companies.
Jonathan Rather, chief financial officer at Welsh Carson, didn’t respond to a phone call and an e-mailed request for comment.
Welsh Carson has historically invested about $1 billion a year in deals, and the firm generally allows investors to co- invest alongside it in larger transactions, according to the firm’s website. Co-investments by Welsh Carson clients totaled more than $2.4 billion in 11 deals over the previous two funds and another pool called WCAS CP IV, according to the website.
Acquisitions by the firm this year include the purchases of Alert Logic, a provider of security to cloud-service providers, and Service Repair Solutions, a provider of information services to the automotive service and repair industry.
The firm in August completed a debt financing of payment provider GlobalCollect, which resulted in $156 million of dividend proceeds. Welsh Carson and Warburg Pincus this year sold eye-care company Bausch & Lomb to Valeant Pharmaceuticals International Inc. for $8.7 billion.
The firm’s prior fund, Welsh Carson Anderson & Stowe XI LP, was generating an almost 12 percent net internal rate of return as of June 30, according to performance data from the Town of Greenwich Retirement System in Connecticut. Welsh Carson, whose co-presidents are Paul Queally and Anthony de Nicola, is the second-largest investor in its prior fund with a close to $300 million commitment, according to the firm’s website.
--Editors: Sree Vidya Bhaktavatsalam, Josh Friedman