Gen Cap America Inc. has raised $250 million in capital commitments for the firm’s seventh private equity fund, Southvest Fund VII LP. The fund's predecessor, Southvest Fund VI LP, closed in Mar. 2009 with the same amount.
Southvest Fund VII LP was raised in less than a year with commitments from institutional investors including state and municipal pension plans. Gen Cap will use the fund to invest in management-led buyouts and recapitalizations of lower middle-market businesses. The PE firm targets businesses with revenues between $5 million and $100 million. Gen Cap exited its investment in Re-Bath Corp., a manufacturer of bathroom remodeling products which it invested in using Southvest Fund VI LP, in 2010.