Genstar triples to $1.6bn fund close

San Francissco-based middle-market firm Genstar has closed its fifth fund on $1.55 billion – more than triple the amount it raised in 2004.

Genstar Capital’s latest fund has surpassed its $1 billion (€740 million) target to close on $1.55 billion. The amount is more three times Genstar’s 2004 fund, which closed on $475 million, and brings the San Francisco firm’s total capital under management to more than $3 billion.

Investors from the 2004 fund made up roughly 80 percent of Genstar Capital Partners V’s limited partners, with the balance going to “a select group of new institutional investors”, the firm said in statement. The LPs include US, Canadian and European pension funds, university endowments, fund of funds, insurance companies, corporations, foundations and high-net-worth individuals.

The Blackstone-affiliated Park Hill Group acted as the fund’s placement agent.

The fund will be invested pursuant to the firm’s focus on middle market firms in segments of the life sciences, healthcare services, industrial technology, business services and software industries, according to Jean-Pierre Conte, Genstar chairman and managing director. Prior to joining Genstar in 1995, Conte was a principal at The NTC Group, a private-equity firm focused on industrial technology companies.

Genstar’s recent deals include its agreement to buy US business communications firm ConvergeOne for an undisclosed amount, the purchase of International Aluminum Corporation for $228 million, and the acquisition OnCURE Medical, a US operator of radiation treatment centers, for an undisclosed amount.