The CapStreet Group LLC has closed its fifth fund at a hard cap of $500 million. The original target was $400 million. CapStreet targets companies in the industrial and outsourced business service sectors.
HOUSTON–(BUSINESS WIRE)–The CapStreet Group, LLC (“CapStreet”), a Houston, Texas based private equity firm that invests in privately held, lower middle-market companies, today announced the final closing of CapStreet V, L.P. at its hard cap, with total commitments of $500 million. CapStreet V exceeded its original target of $400 million with commitments from a diverse group of existing and new investors.
“We were pleased with the strong support that we received from our existing base of limited partners, and we were also fortunate to be able to expand this investor base by adding a select group of new limited partners to CapStreet V,” said George Kelly, CapStreet Managing Partner. “CapStreet V will continue its existing strategy of recapitalizing entrepreneur and family-owned businesses where there is a defined strategy to accelerate growth through operating initiatives, technology enhancement and strategic M&A.”
CapStreet targets companies operating in the industrial and outsourced business service sectors, including tech enabled services and software businesses. CapStreet’s approach is to partner with strong management teams with the goal of building out corporate infrastructure, accelerating growth and profitability, and creating long term sustainable businesses.
“The success of CapStreet V’s fundraise underscores the team’s track record and strong investment strategy,” said Neil Kallmeyer, CapStreet Managing Partner. “We will continue to execute on our distinct investment sourcing strategy, and then deploy our Operating Executive team to bring expertise in technology, business process improvement, distribution and other functional areas to our portfolio companies. CapStreet will continue its core strategy of investing primarily in companies with $3 million to $15 million of EBITDA in its geographic region, and then utilize its operational playbook to accelerate growth and profitability.”
Since the firm’s founding in 1990, CapStreet has invested in 46 initial platform companies.
Willkie Farr & Gallagher LLP provided legal counsel on behalf of CapStreet V, L.P.