Vistria Group, a private equity firm based in Chicago with ties to former President Barack Obama, has successfully closed a $3bn fund, adding to the growing list of Windy City investors raising capital over the past year, according to a report by BNN Bloomberg.
The new fund, Vistria Fund V, will target investments in sectors such as US healthcare and financial services.
With the latest capital raise, Vistria’s total assets under management will reach approximately $16bn. The firm was founded by Kip Kirkpatrick and Marty Nesbitt, who is a longtime friend of Obama and served as treasurer for both of his presidential campaigns.
This capital raise further contributes to the trend of private equity firms in Chicago securing significant funding in recent months, with Shore Capital Partners, led by billionaire Justin Ishbia, closing $1.9bn for three new funds in October, and Pritzker Private Capital, owned by Illinois Governor JB Pritzker and his brother Tony, also in the process of raising $3bn for its third fund last year.
Kirkpatrick emphasised the firm’s strong support, stating, “The backing from our current limited partners and the interest from new partners around the world for Fund V highlights the confidence in our investment strategy.”
Vistria, which focuses on investing in mid-sized companies, has been expanding its operations recently. Notably, it appointed former Massachusetts Governor Deval Patrick as a senior partner in November.
In 2021, the firm raised $2.68bn for its fourth fund, more than doubling the $1.1bn it raised for its third fund.
However, Vistria has also faced legal challenges. Last month, Delaware’s Chancery Court ruled that Vistria and another firm, Nautic Partners, were involved in helping executives from a home hospice company unlawfully establish a competing business.
