Wellspring Capital Management, a year after launching its fifth fund, trimmed the target of the new vehicle to $1.3 billion, according to a Form D filing with the Securities and Exchange Commission. The firm disclosed that it has so far raised $491 million for the fund, which originally had a $1.5 billion target.
Credit Suisse is serving as placement agent for Wellspring in the fundraise.
The New York buyout shop is by no means in the minority when it comes to funds trimming targets on new vehicles. In the latest quarterly update from Preqin, the data provider reported that the aggregate target of funds currently in the market had fallen by $55 billion, "as some funds have been placed on hold or abandoned, and others have reduced their targets."
AEA Investors, for instance, which crossed the halfway point on its most recent small business fund in March, trimmed its target to $250 million from the $300 million identified in an earlier SEC filing.
Wellspring, for the past year, has seemed to focus on returning capital to limited partners. The firm, after executing a dividend recap, sold Vatterott Educational Centers to TA Associates in a $4 billion deal.
Founded by Greg Feldman and Martin Davis in 1995, Wellspring's predecessor fund raised $1 billion in 2005. The firm's current portfolio includes investments in restaurant operators Dave & Buster's and Checkers, outdoor products distributor Ellett Brothers, foodservice company Performance Food Group and personal care products manufacturer Chem-Aid, among others.
An inquiry into Wellspring was not immediately returned by press time.