Genstar Quickly Raises $7 Billion

Genstar Capital has held a final closing of Genstar Capital Partners IX LP with $5.9 billion in capital commitments. The general partner of Fund IX (and its affiliated entities) are the largest investors in the new fund with over $400 million of committed capital.

In addition to the Fund IX commitments, Genstar has raised committed overage capacity of $1.1 billion from certain Fund IX limited partners which results in total capital raised of $7 billion.

Limited partners in Fund IX include global endowments and foundations, public and corporate pension plans, sovereign wealth funds, financial institutions, and family offices.

“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,” said Tony Salewski, a managing director of Genstar. “We believe that our thesis-driven investing model of growing and building industry-leading businesses will continue to deliver superior performance for our investors.”

Genstar invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million.  The firm targets investments in the financial services, software, industrial technology, and healthcare industries. Over the past 12 months, Genstar has closed on four new platform investments and realized proceeds in six companies.

Genstar, founded in 1988, has 21 members on its investment team and operates from a single office in San Francisco. The investment team is complemented by a group of 26 strategic advisors, who are current and former operating executives (www.gencap.com).

“We are excited to continue our long history of building a leading and sustainable investment firm,” said Jean-Pierre Conte, chairman and managing director of Genstar. “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.”

“As we build our firm to endure for the future, our focus is on our people, our portfolio leadership teams, and our investors,” said Ryan Clark, president and managing director of Genstar. “All three constituencies are responsible for our continued success, and we want to thank them as we begin to invest Fund IX.”

Evercore Partners (www.evercore.com) was the placement agent for this fundraise and Weil, Gotshal & Manges (www.weil.com) provided legal services.

Genstar’s earlier fund, Genstar Capital Partners VIII LP, closed in 2017 with approximately $3.95 billion of total committed capital.

© 2019 Private Equity Professional | February 27, 2019

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