Chicago-based private equity firm GTCR has announced the final closing of its tenth buyout fund, with $3.25bn of capital committed.
The fund, which originally had a target of $3bn, is the largest GTCR has raised since the firm was founded in 1980.
It will target companies in the financial services, healthcare and information technology sectors, and like other GTCR funds will be focused on building companies through bolt-on acquisitions.
GTCR raised the fund in just seven months – versus an average of 18 months for funds closing in the past year, according to Prequin. It took 18 months to raise its $60m debut fund thirty years ago.
“More than 80 percent of commitments to Fund X came from existing investors, with a large number increasing the size of their commitment versus prior funds,” said GTCR principal David Donnini.
“About half of our new commitments came from international limited partners, and we are pleased to be able to continue to grow this segment of our investor base.”
Limited partners were reportedly pushing for a preferred return – a certain threshold of returns the firm must generate before it can charge carried interest – to be included in the terms of the fund, but eventually backed down.
The firm currently has nearly $7bn in assets under management. It has just sold cheese distributor Fairmount Cheese to Canadian dairy processor Saputo in a $270.5m deal, just under double its original investment.
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