Genstar Capital said Feb. 25 that it closed its latest fund on $5.5 billion in LP commitments. Genstar raised $1.1 billion in committed overage capacity from select LPs. The GP and affiliated entities also provided more than $400 million of committed capital. Genstar’s prior fund closed on $3.95 billion in 2017. Evercore Partners served as placement agent for the fund, while Weil, Gotshal & Manges LLP provided legal advice.
Genstar Capital Closes Fund IX and Affiliated Overage Fund with $7 Billion of Committed Capital
* $5.5 Billion in Fund IX LP Commitments
* $1.1 Billion Committed Overage Capacity
* Expanded Group of Global Investors
SAN FRANCISCO, February 25, 2019 – Genstar Capital, a leading private equity firm focused on investments in targeted segments of the financial services, software, industrial technology, and healthcare industries, today announced the final closing of Genstar Capital Partners IX with $5.5 billion in limited partner commitments. In addition, Genstar has raised committed overage capacity of $1.1 billion from select limited partners. The General Partner and affiliated entities are the largest investor in Fund IX, with over $400 million of committed capital. Total capital raised, including Fund IX, the General Partner, affiliated entities, and the overage capacity is approximately $7 billion.
The General Partner will continue to be led by J. Ryan Clark, Jean-Pierre L. Conte, Rob S. Rutledge, Tony J. Salewski, and Eli P. Weiss.
Ryan Clark, President and Managing Director at Genstar said, “As we build our firm to endure for the future, our focus is on our people, our portfolio leadership teams, and our investors. All three constituencies are responsible for our continued success, and we want to thank them as we begin to invest Fund IX.”
Commenting on the fundraising, Tony Salewski, Managing Director, said, “We appreciate the tremendous support from our existing limited partners and the expansion of our base among leading global investors. The focus of this group allowed us to move quickly to close Fund IX within 15 weeks of the fund launch. We believe that our thesis-driven investing model of growing and building industry leading businesses will continue to deliver superior performance for our investors.”
Jean-Pierre Conte, Chairman and Managing Director, said, “We are excited to continue our long history of building a leading and sustainable investment firm. Genstar operates with one-team from one-office and maintains the same disciplined and innovative investment approach that has helped us develop a strong track record over the past 30 years.”
The investor base includes an expanded group of limited partners, including leading global endowments and foundations, public and corporate pension plans, sovereign wealth funds, financial institutions, and family offices. Genstar closed its previous fund, Genstar Capital Partners VIII, in 2017 with approximately $3.95 billion of total committed capital.
Over the past 12 months, Genstar invested in four new platform investments and realized proceeds in six companies. Genstar continues to invest in and take control positions in middle market companies headquartered in North America. Genstar has 21 members on its investment team operating from a single office in San Francisco. They are supported by a senior operations team and complemented by a group of 26 strategic advisors, who are current and former operating executives, working side by side with the Genstar investment team.
Evercore Partners served as Placement Agent for the fund, and Weil, Gotshal & Manges LLP provided legal advice.
About Genstar Capital
Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for 30 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar currently has approximately $17 billion of assets under management and targets investments focused on targeted segments of the financial services, software, industrial technology, and healthcare industries.