Madison Dearborn Is Said to Seek $3 Billion for Newest Fund (1)

Madison Dearborn Partners is seeking $3 billion for its newest fund, marking what would be the smallest pool of capital raised by the private equity firm since 1999, according to people with knowledge of the matter.

The firm has begun discussing the vehicle, known as Madison Dearborn Capital Partners IX LP, with prospective investors, said the people, asking not to be identified discussing information that isn’t public. The ninth fund follows five prior vehicles that amassed $4 billion or more, according to data compiled by Bloomberg.

Madison Dearborn has historically backed US companies in four sectors: basic industries, health care, ...