Nashville-focused private equity firm Gen Cap America has closed its seventh buyout fund Southvest Fund VII LP at a hard cap of $250 million. The fund will focus on management buyouts of lower middle-market companies.
Nashville, Tenn. – Jan. 5, 2017 – Officials with Gen Cap America, Inc., announced today the private equity firm has completed fundraising of $250 million for its latest buyout fund, Southvest Fund VII, L.P. As with previous Gen Cap funds, Southvest Fund VII is organized to invest in management buyouts of lower middle-market companies with proven operating histories and strong management teams.
“We formed Gen Cap America over 25 years ago and have built a strong, consistent run of success,” said Barney Byrd, president and chief executive officer of Gen Cap. “Since inception, we have achieved a profit for every fund on each portfolio company in all exits.”
Gen Cap reached the hard cap of $250 million for Southvest Fund VII in less than a year. Funds were raised largely from institutional investors including state and municipal pension plans. The fund is organized to invest in management-led buyouts and recapitalizations of profitable businesses with revenues typically between $5 million and $100 million.
The Fund will target businesses with a history of strong cash flow, avoiding turnaround or start-up investments. Gen Cap’s strategy includes partnering with existing management teams that have a proven record of success and who seek to invest their own capital in the business with the fund.
Gen Cap officials previously announced Pyramyd Air Ltd. as Fund VII’s first acquisition agreement in late November 2016. With distribution facilities across the country, the Solon, Ohio-based company is a global leader in distributing air guns, airsoft guns, BB guns and related parts and accessories to customers in more than 80 countries. For more information, visit www.pyramydair.com.
“As our national economy continues to improve, there are increasing attractive buying opportunities with strong upside,” explained Don Napier, executive vice president of Gen Cap America. “We believe this is an opportune market for our strategy of investing in successful manufacturing, service and distribution companies with strong market share, and we’re pleased to already have our first portfolio company on board.”
Headquartered in Nashville, Gen Cap America is one of the oldest private equity firms located in the Southeast. The firm’s successful investment approach has yielded top performing buyout funds since 1988.
About Gen Cap America, Inc.
Gen Cap America, Inc. is a Nashville-based private equity firm that provides equity for management buyouts, division spinoffs, and recapitalizations of profitable, well-established lower middle market businesses. For more information, visit www.gencapamerica.com.