GTCR Golder Rauner, a buyout shop with more than $6 billion under management, has closed the window on its eighth fund with $1.85 billion.
The firm has already created four portfolio vehicles for GTCR Fund VIII LP. GTCR Managing Principal Ned Jannotta says they “could take up as much as 25% of the fund.”
Fairmont Food Group, headed by Bing Graffunder, will focus on buyouts in the food and beverage sector, while Charles Koppelman has been named CEO of CAK Music Holdings, which will look to acquire music catalogues. GTCR tabbed Michael Polsky as CEO of Invenergy, which will focus on energy-related leveraged buyouts, and the Chicago-based buyout shop has chosen Tom Wimsett to head Iron Triangle Payment Systems to dive into the payment processing sector.
“Typically, we look to acquire mostly startups with outstanding management teams,” Jannotta says.
He adds that investments could run anywhere from $5 million to $1 billion. The firm plans to commit the capital over a four-year period and fully invest the total over a six- or seven-year period. Fund VIII’s predecessor, Fund VII, made its final investment early this year with the $200 million buyout of Morton Grove Pharmaceuticals.
The firm’s seventh fund has completed one exit to date, selling Cambridge Protection Industries LLC to ADT Security Services, a division of Tyco for about $1 billion. Tyco paid five times GTCR’s original investment in the company. Also from Fund VII, GTCR floated DigitalNet Holdings in October, and saw a 23% increase in stock price on opening day.
In a tough fund-raising environment, GTCR managed to re-sign some big-name LPs for Fund VIII, including Harbourvest Partners, Pathway Capital Management and Washington State Investment Board.
Other LPs in the GTCR stable include The Duke Endowment, The Ford Foundation, Iowa Public Employees Retirement System, Minnesota State Board of Investments and Pennsylvania State Employees’ Retirement System.
Email Joe Christinat