GTCR looks to be nearing a close for its tenth fund.
A source, confirming an earlier report from LBO Wire, says the Chicago PE firm is wrapping up marketing for GTCR Fund X LP with a $3.5 billion hard cap.
In August, I reported that GTCR was targeting $3 billion for the pool. “GTCR is one of a handful of GPs that form the private equity gold standard these days,” the person says. “The vast majority of GPs will not have nearly as easy a time fundraising.”
LBO Wire says the pool has strong support from investors in the firm’s previous offerings. Chicago-based GTCR has also resisted adding a preferred return to the pool. A preferred return would require GTCR to hit a set return threshold before it could take its share of the profits, LBO Wire says.
GTCR’s prior fund raised $2.75 billion in 2006. That fund, GTCR Fund IX, has an IRR of -8.7% according to June 30 data from the Washington State Investment Board, an investor in the fund. GTCR’s Fund VII and VIII are better performers. Fund VIII has an IRR of 27.3%, while Fund VII has a 25.3% IRR, the Washington State Investment Board reports.
GTCR’s ninth fund broke even by the end of 2010 and has produced a positive net IRR, says LBO Wire, citing an unnamed source.
Officials for GTCR couldn’t be reached for comment.