Leonard Green & Partners, the buyout firm whose investments include Whole Foods Market and J. Crew Group, raised about $4 billion for its sixth fund, according to two people with knowledge of the matter.
The private equity firm aims to complete fundraising for Green Equity Investors VI this month, with a formal close early next year, said one of the people, who asked not to be identified because the information is private. Leonard Green started raising money this year with a goal of matching its 2007 fund at $5.3 billion and later set a cap of $6 billion.
The firm oversees about $9 billion in equity, according to its website.
Michael Gennaro, Leonard Green’s COO, declined to comment on fundraising.
In addition to imposing a cap on the fund, which investors prefer so it doesn’t grow too large, Leonard Green will give limited partners 100% of fees charged to companies it acquires. It initially planned to give them 80% of the fees.
The firm’s fifth fund generated an 18% net internal rate of return, and its holdings were valued at 1.3 times cost as of June 30, according to performance data published by the $78.6 billion Washington State Investment Board, Olympia, on its website.
Leonard Green usually targets deals of $500 million to $2 billion in enterprise value, according to its website. The firm’s investments also include BJ’s Wholesale Club and Jo-Ann Stores.