Hellman & Friedman closes fourth fund at more than $2B

Pioneering buyout firm Hellman & Friedman will close its fourth investment fund at more than $2 billion next month.

The company thus continues reaping industry-leading returns on offbeat cashflow-based businesses.

In an investment market now crowded with venture capital and targeted buyout funds, Hellman & Friedman stands out as the most well-established merchant bank on the West Coast. The firm has spent 15 years funding cash-flow-intensive industries largely ignored by its mostly New York-based private equity counterparts.

During that time, Hellman & Friedman has managed a 47 percent return on more than $2.5 billion in investments in about 40 companies. It has created a niche for itself as the premier private backer of "elevator asset" industries - businesses that derive most of their value from people and ideas.

Now the company faces a new challenge from venture...