CapStreet Hits Hard Cap
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CapStreet Hits Hard Cap

The CapStreet Group has held a final closing of CapStreet V LP at its hard cap with total commitments of $500 million. The new fund had an original target of $400 million in commitments.

CapStreet makes control investments in privately held, lower middle-market companies that have annual EBITDA between $3 million and $20 million and are active in the value-added distribution, industrial services and manufacturing, and business-to-business service sectors.

“We were pleased with the strong support that we received from our existing base of limited partners, and we were also fortunate to be able to expand this investor base by adding a select group of new limited partners to CapStreet V,” said George Kelly, a managing partner and co-founder of CapStreet. “CapStreet V will continue its existing strategy of recapitalizing entrepreneur and family-owned businesses where there is a defined strategy to accelerate growth through operating initiatives, technology enhancement and strategic M&A.”

CapStreet’s most recent acquisition was the August 2019 buy of Surgical Notes, a Dallas-based provider of products and services used by ambulatory surgical centers to streamline reimbursements, reduce administrative costs, and better manage data and information. The buy of Surgical Notes was CapStreet’s ninth investment for CapStreet IV LP which closed in May 2014 with $340 million of capital.

“The success of CapStreet V’s fundraise underscores the team’s track record and strong investment strategy,” said Neil Kallmeyer, a managing partner at CapStreet. “We will continue to execute on our distinct investment sourcing strategy, and then deploy our operating executive team to bring expertise in technology, business process improvement, distribution and other functional areas to our portfolio companies.”

Houston-based CapStreet was founded in 1990 and has invested in 46 platform companies over the past 29 years.

Willkie Farr & Gallagher provided legal services to CapStreet for this fundraise.

© 2019 Private Equity Professional | December 12, 2019

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