GTCR hits $3.25 bln target for Fund XI

• Firm began fundraising for fund XI in July

• Final close expected in early 2014

• Firm expected to meet hard cap of $3.75 bln

The Chicago buyout shop has so far collected roughly $2.673 billion for GTCR Fund XI LP, according to SEC filings. GTCR has also sold $566 million in interests in a parallel fund, the filings said.

Credit Suisse is the placement agent.

The PE firm began fundraising for its eleventh pool in July with a first close expected this month. A final close is expected in early 2014, Buyouts has reported. GTCR is expected to close Fund XI at its hard cap of $3.75 billion, according to press reports.

Marketing for GTCR’s Fund XI is going well, two placement agents said.

“They’re not being aggressive on fund size, changes to the senior team have settled in and [they have] good performance,” one of the sources said.

Fund XI has received a $115 million commitment from San Francisco Employees’ Retirement System and another $60 million from the Maine Public Employees Retirement System, Buyouts has reported. Also, Massachusetts Pension Reserves Investment Management Board has pledged up to $180 million for GTCR Fund XI, Buyouts reported.

GTCR’s tenth fund, which closed in 2011 at $3.25 billion, is generating a net IRR of 7.52%, according to Dec. 31 data from the Washington State Investment Board. The firm’s ninth pool, which collected $2.75 billion in 2006, is producing a 10.84% net IRR, while GTCR Fund VIII, a $1.8 billion pool from 2003, is generating a 23.99% net IRR, WSIB says.

Earlier this week, Bruce Rauner, a former GTCR principal who is running for Governor of Illinois, revealed $53.4 million in net income for 2012, according to the Chicago Sun-Times. Rauner, who retired from GTCR in 2012, released three years of tax returns on Monday.

The former GTCR executive, who touts his love of an $18 watch in a campaign commercial, also disclosed he owns stakes in sports teams such as the Chicago Bulls, the Pittsburgh Steelers and Boston Red Sox. 

Officials for GTCR declined comment.

Luisa Beltran is a senior reporter for peHUB