Milwaukee, US-based private equity firm Generation Growth Capital has closed its second fund “significantly” above the size of its debut, although is keeping details of the fundraise under wraps.
The firm also closed companion fund Generation Growth Capital Wisconsin Fund II, but similarly did not reveal the size of the vehicle.
Documents filed with the US Securities and Exchange Commission last month show the firm was targeting $100m, although it had only registered just over $34m at that point.
GGC founder and managing director Cory Nettles said, “We are quite pleased that 100 per cent of our Fund I institutional investors who still invest in private equity, made a new financial commitment to Fund II.
“Many of our investors had meaningful increases over their Fund I commitment amounts.
“In spite of what remains a very difficult fund-raising environment, we raised significant resources to support our ongoing acquisition and growth of Midwest-based small businesses.”
Fellow managing director John Reinke said the firm intended to maintain its focus on Midwest-based small businesses, primarily in the heavy, industrial manufacturing sector.
He said, “Our initial investments out of Fund II are exceeding our performance expectations, and we aggressively are pursuing other investments to close this year.”
Fund II closed its first deal in January last year by purchasing Midway Industrial Supply, a Minnesota-based value-added distributor and systems integrator of fluid handling and spray finishing equipment.
Three months later the fund closed on its second investment, Tri Aerospace, an Indiana-based manufacturer of large, complex machined components for major aerospace engine customers.
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