GTCR closed its debut Strategic Growth Fund on $2 billion for investments in smaller deals than those pursued by its flagship vehicles. Strategic Growth Fund investments will range from $50 million to $200 million in equity over time. GTCR raised the fund exclusively from investors in prior GTCR funds.
GTCR, a leading private equity firm founded in 1980, today announced the recent closing of its first Strategic Growth Fund with $2.0 billion of limited partner capital commitments. The new fund, which launched fundraising in August 2021, was raised from investors in prior GTCR funds. GTCR expects that the Strategic Growth Fund will support its Leaders Strategy™ investment approach for smaller opportunities than those pursued by its most recent flagship fund, GTCR Fund XIII, which closed on $7.5 billion in limited partner capital commitments in 2020.
“The creation of the Strategic Growth Fund marks an important milestone for GTCR. This significant fund allows us to maintain our long-term focus on investing behind excellent management teams in this segment of the market, consistent with our proven investment strategy and track record,” stated Sean Cunningham, Managing Director at GTCR. “We are very appreciative of the support from our tenured base of limited partners in subscribing to this new vehicle.”
The Strategic Growth Fund will employ GTCR’s Leaders Strategy™ investment approach, which it has applied and refined over several decades. This strategy is centered on GTCR’s ability to find and partner with exceptional management leaders in its core domains to identify, acquire and build market leading companies through transformational acquisitions and organic growth. It is expected that Strategic Growth Fund investments will range from approximately $50 million to $200 million of equity over time. GTCR continues to focus primarily on four key industry sectors for the Strategic Growth Fund and other funds. These are areas in which GTCR has developed deep vertical expertise and investment experience over decades, and include Financial Services and Technology, Growth Business Services, Healthcare, and Technology, Media & Telecommunications.
“At GTCR, we are focused on investing in growth and innovation in our core verticals across a wide spectrum of company sizes. We look to support our management teams in executing upon jointly-developed investment theses, whether those investments start with smaller or larger platform acquisitions,” commented Aaron Cohen, Managing Director at GTCR. “By partnering with world-class executives and leveraging our collective industry knowledge, the businesses in which we invest can experience transformational change with attractive growth and innovation profiles. We expect our investments to grow into significant companies in their industries regardless of the size of the initial platform.”
The capital commitments for the Strategic Growth Fund were provided exclusively by limited partner relationships that previously committed to GTCR Fund XIII. Most of GTCR’s limited partners have a long and consistent history of investment in prior GTCR funds. These investors include public and private pension funds, foundations and endowments, funds of funds and insurance companies, among others.
The close of the Strategic Growth Fund is also reflective of GTCR’s growth strategy, which includes the recently announced opening of offices in New York and West Palm Beach. In line with the expansion of its office footprint, GTCR also continues to invest in growing and enhancing the depth, experiences and diversity of its investment and non-investment professional team.
Kirkland & Ellis LLP provided legal counsel to support GTCR in raising the new fund.
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Growth Business Services, Healthcare, and Technology, Media & Telecommunications industries. The Chicago-based firm pioneered The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $20 billion in over 250 companies. For more information, please visit www.gtcr.com.