Clearlake Capital Group has received an extension from its limited partners to continue fundraising for its eighth flagship private equity vehicle, targeting $15bn, amid a persistently challenging capital-raising environment, according to a report by Bloomberg.
The Santa Monica-based private equity firm, which returned to market in June 2023, has secured approximately $13bn in commitments to date, according to sources familiar with the matter.
The fundraising window has now been extended through November 2025, potentially bringing the total marketing period to 30 months – an increasingly common scenario in today’s slower fundraising cycle.
Clearlake’s Fund VIII follows its prior vehicle, which closed on a record $14bn. Despite a strong track record and significant dry powder, the firm’s extended timeline reflects broader sector dynamics. Since 2022, elevated interest rates and a subdued dealmaking environment have limited capital recycling, complicating LPs’ ability to re-up into new funds.
According to Bain & Company, 2023 saw the lowest number of PE fund closes since 2017, with over one-third of buyout funds taking more than two years to reach a final close.
Clearlake, which manages over $90bn in AUM across private equity, special situations, and credit, has faced challenges within parts of its portfolio. Several companies have undergone restructurings or bankruptcy processes in recent quarters. Ivanti Software, for instance, recently reached an agreement to extend certain debt maturities, while RSA Security’s creditor negotiations have stalled.
Additionally, the firm continues to actively utilise continuation fund structures – an increasingly debated liquidity tool within the asset class. Clearlake is in advanced stages of securing a continuation vehicle for Constant Contact, its digital marketing platform asset, with a potential close expected in the near term.
Founded in 2006 by José Feliciano and Behdad Eghbali, Clearlake invests across the technology, industrials, and consumer sectors. Portfolio holdings include Chelsea Football Club and Discovery Education.
