The Chicago private equity firm is targeting $3.25 billion for GTCR Fund XI LP, three persons say. That is the same amount collected for its tenth fund in 2011. UPDATE: Credit Suisse is placement agent for the fund, according to sources.
GTCR’s tenth fund, which is very young, is generating a net IRR of 7.52%, according to Dec. 31 data from the Washington State Investment Board. The firm’s ninth pool, which collected $2.75 billion in 2006, is producing a 10.84% net IRR, while GTCR Fund VIII, a $1.8 billion pool from 2003, is generating a 23.99% net IRR, WSIB says.
Officials for GTCR declined comment.
The fundraising comes 17 months after GTCR closed its tenth pool in February 2011 GTCR has been investing the fund very quickly, one placement agent says. As of December, GTCR Fund X LP was 61.5% drawn, while the average U.S. buyout fund from 2011 was 29.3% drawn, the placement source says.
GTCR’s fund X has invested in 13 companies and has 15% of capital reserved for follow-on deals, a second placement source says. Investments for the tenth pool include Correctional Healthcare Companies, Premium Credit and Zayo Group. Rural Broadband Investments, a GTCR portfolio company, as well acquired Cable Management Associates and NewWave Communications, while Cannondale Investments bought OneSource Information Services.
“They figure they have space for another four deals in Fund X,” the second placement agent says.
The fundraising is also the first for GTCR since Bruce Rauner retired last year. While technically not a GTCR founder (he joined the PE firm in 1981), Rauner was considered a leader of the buyout shop. Rauner has officially thrown his hat into the ring for Illinois governor.
–Buyouts Steve Gelsi contributed to this report
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