Genstar Capital closes eighth middle-market fund, as PE firms continue raising

Private equity firm Genstar Capital has raised a new fund, called Genstar Capital Partners VIII, with approximately $3.95 billion in capital commitments. Fund VIII will focus on the firm’s “sweet spot of deals requiring $100 million to $400 million of equity,” according to Genstar managing director Ryan Clark.

Fund VIII received investments from endowments, foundations, public and corporate pension plans, sovereign wealth funds, financial institutions and family offices. The firm’s previous fund, Genstar Capital Partners VII, closed with nearly $2.1 billion in total capital. Weil, Gotshal & Manges LLP served as legal counsel on Fund VIII, while Evercore Partners served as placement agent. Genstar began raising capital for Fund VIII in January.

Genstar is a San Francisco-based private equity firm that backs middle-market businesses with at least $10 million in Ebitda. The PE firm focuses on the industrial technology, healthcare, software and financial services sectors. Genstar has been quite active lately. The firm recently backed electrical parts designer Power Products and is also invested in Petrium Packaging.

Private equity firms have been actively raising funds recently. Recent capital raises include: Marlin Equity Partners closing two PE funds to back U.S. and European middle-market businesses; Platinum Equity LLC raising a fourth global buyout fund with $6.5 billion in capital commitments; Quad-C Management’s $1.1 billion private equity fund; the Carlyle Group’s (Nasdaq: CG) fourth distressed fund; Vector Capital’s fifth private equity fund; Monroe Capital LLC’s $800 million credit fund; and NXT Capital LLC’s fourth debt fund at $900 million.