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GenNx360 set to close Fund II after two years in market

GenNx360 Capital Partners is approaching the end of fundraising for its second vehicle, which will likely hold a final close at the end of this month, according to a person with knowledge of the firm.

GenNx360 has been in the market since March 2012 with its second offering, targeting $750 million, according to a filing with the U.S. Securities and Exchange Commission. As of January, the firm had collected about $437.9 million, the filing said. Mercury Capital Advisors has worked on some aspects of the fundraising, the person said.

Fund II will get close to its target, the person said, though it’s not clear how much the vehicle will tally overall. The firm declined to comment. The fund has begun investing, the person said.

The fund will target middle market buyouts of companies generating revenues between $75 million and $500 million in industrial manufacturing, business-to-business and services industries, according to documents from Connecticut Treasury’s Investment Advisory Committee. Connecticut’s state Treasurer Denise Nappier authorized a commitment of up to $25 million to the fund earlier this month.

GenNx360 raised its debut fund in 2006, closing on $600 million. That fund was generating a 16.5 percent net internal rate of return and a 1.6x investment multiple, according to performance information as of June 30, 2013 from the California Public Employees’ Retirement System.

The firm’s founders include Managing Partners Ronald Blaylock, Arthur Harper, James Shepard and Lloyd Trotter. Harper, Shepard and Trotter were all long-time executives at General Electric Co., while Blaylock founded and managed investment banking firm Blaylock & Company.

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