Private equity firm the CapStreet Group LLC has closed a $340 million fund to invest in lower middle market companies. The news comes during the best fundraising climate private equity firms have seen in years.
The fund is called CapStreet IV LP, and is the firm's fourth fund. CapStreet launched fundraising for the fund in November 2013, and surpassed its $250 million target. Mergers & Acquisitions previously reported that CapStreet was raising a fund.
The fund will invest in lower middle market companies in Texas and the surrounding states. CapStreet targets industrial and diversified business services companies with annual Ebitda between $5 million and $20 million. The firm closed its third fund with $178 million in committed capital in November 2010.
CapStreet's portfolio companies include Griffin Dewatering, which provides pumping equipment to the industrial and infrastructure industries, and Gulf Stream Marine, which operates a marine terminal and provides cargo-handling services. In January, CapStreet-backed Eads closed a deal for Control Equipment Co.
For more on the lower middle market, see "Life in the Lower Middle Market."