Private investment firm Clayton, Dubilier & Rice (CD&R) is aiming to raise $26bn for its newest flagship private equity fund, a total that would place it among the largest-ever fundraises in the industry, according to a report by Bloomberg.
The firm has begun pre-marketing the fund to prospective investors and plans to formally launch fundraising in the first half of 2026, according to people familiar with the matter. Including an investment from CD&R itself, the total could surpass $28bn. The firm declined to comment.
CD&R’s fundraising push comes amid a challenging environment for private equity. Global fundraising fell to $407.5bn in 2025, down from $611.6bn in 2024, according to PitchBook data.
If successful, the fund would rank alongside some of the largest PE vehicles ever raised, slightly below CVC’s $29.2bn fund in 2023 and above Thoma Bravo’s $24.3 billion flagship last year. CD&R’s previous flagship, Fund XII, closed in August 2023 with $26bn, including $2.5bn of the firm’s own capital. Early returns have been strong: the fund generated a 37.19% internal rate of return for California State Teachers’ Retirement System as of 30 June, 2025, though it remains early in its lifecycle.
Like its predecessors, the new fund will focus on control investments in large companies across sectors including healthcare, consumer and retail, technology and industrials, and business services. Unlike some peers that have diversified into credit and other strategies, CD&R continues to focus exclusively on private equity.
CD&R’s recent transactions highlight its sector-focused approach. In November, it agreed to acquire Charlotte-based Sealed Air Corporation in a $10.3bn all-cash deal. Last year, the firm, alongside American Securities, sold building products distributor Foundation Building Materials to Lowe’s Companies for $8.8bn.
Over the three years ending in 2025, CD&R invested $13.7bn and returned $18bn to investors.
