CD&R Targets $26 Billion for Latest Flagship Fund Amid Surging **Private Equity Fundraising** Momentum

This fundraise aligns with broader **private equity fundraising trends 2025-2026**, where top-tier managers like CD&R are prioritizing **limited partner commitments** from sovereign wealth funds, pensions, and endowments amid dry powder accumulation exceeding $3 trillion globally, per Bain & Company’s latest outlook. CD&R’s approach—blending operational expertise with disciplined capital deployment—positions it favorably as LPs demand value creation beyond financial engineering.

CD&R’s Proven Playbook: Recent Deals and Portfolio Highlights

CD&R’s strategy resonates in **private equity exit strategies** for mature assets. Key recent moves include heavy involvement in Core & Main (NYSE: CNM), a waterworks distributor where CD&R affiliates remain key insiders amid 2025-2026 trading activity totaling millions in shares, reflecting ongoing value unlock post-IPO.[2] Similarly, at Resideo Technologies (NYSE: REZI), CD&R entities executed massive share purchases—over $250 million in mid-2025—betting on smart home and HVAC growth amid sector consolidation.[4]

Sovereign Wealth Fund Backing Boosts Momentum

Global heavyweights are doubling down on elite managers like CD&R. Azerbaijan’s State Oil Fund (SOFAZ) lists CD&R alongside KKR, Carlyle, and EQT in its $18.1 billion equity portfolio, which posted 13.5% returns through nine months of 2025—outpacing benchmarks and validating **sovereign wealth private equity allocations**.[3] This exposure, part of $15.8 billion in foreign-managed assets averaging 14.5% returns, exemplifies LP appetite for proven operators amid **cross-border private equity trends 2026**.[3]

Industry Implications: **Megafund Competition** Heats Up

As CD&R chases this **$26 billion private equity fund**, it joins peers navigating elevated interest rates, regulatory scrutiny, and AI-driven disruption. McKinsey’s 2025 Global Private Markets Review notes top-quartile funds like CD&R’s achieving 2-3x multiples via operational levers, even as median dry powder deployment lags. For C-level executives eyeing **private equity co-investments** or exits, CD&R’s raise reinforces selective fundraising success: expect focus on **control buyouts in industrials** and **add-on M&A strategies** to drive synergies.

Risks persist—Wall Street Oasis forums buzz with debates on PE sustainability amid work intensity and lateral moves—but CD&R’s insider buying and LP endorsements signal resilience.[5] Deal advisors should monitor for first closes by mid-2026, potentially unlocking $10-15 billion in deployable capital for **mid-market private equity deals**.