Genstar Capital has hit the $900m mark for its latest private equity fund, putting it just $100m away from a reduced-size fund close.
The firm originally hoped to raise $1.5bn for its sixth investment vehicle but cut the target earlier this year amid a difficult fundraising market.
A source told Bloomberg the firm planned to offer additional co-investment opportunities to those hoping to put more money into deals, adding that fundraising should be completed by the third quarter.
US mid-market investors Genstar began marketing its latest fund at the beginning of 2011, and quickly agreed to lower the management fee from 2 per cent to 1.75 per cent following requests from big investors.
The firm’s prior fund, which targeted $1bn, easily exceeded that with a $1.55bn fundraise in 2007.
Genstar’s last deal was the $400m acquisition of health research provider eResearchTechnology in April.
The firm aims to make equity investments of between $50m and $400m in middle-market companies focused on life sciences, health-care services, software and software services, financial services and industrial technology.
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