By Sabrina Willmer

Of Dow Jones PRIVATE EQUITY ANALYST

Private equity firm Centerbridge Partners LP is targeting $3.75 billion for its second distressed-debt and buyout fund, according to an overview of key fund terms sent to prospective investors.

Centerbridge Capital Partners II LP is aiming to raise more than the $3.2 billion its predecessor fund collected in 2006. The vehicle will invest in both distressed debt and buyout deals.

Officials at New York-based Centerbridge weren't immediately available for comment.

Centerbridge is leading a group that plans to take control of Extended Stay Inc. as part of a restructuring plan for the bankrupt hotel chain. In March, Centerbridge agreed to purchase dialysis-clinic operator American Renal Holdings.

Centerbridge Partners recently wrapped up Centerbridge Special Credit Partners LP at its $2 billion hard cap, Dow Jones reported in April. That fund executes a non-control, activist-oriented trading strategy in distressed-security investments.

(Dow Jones Private Equity Analyst covers fund raising and other news of interest to the private equity community)

-By Sabrina Willmer; Dow Jones Private Equity Analyst; Sabrina.Willmer@dowjones.com

Original Email Message: http://enews.newswires.dowjones.net/Enewsmails/Links.aspx?Ac=6&;ID=20100805-19064184-0

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08-06-10 0914ET