PE fund briefs, week of Aug. 9, 2010

GTCR raising $3B

GTCR is targeting $3 billion for its 10th fund, with marketing already underway.

The Chicago-based private equity firm’s prior fund was capped at $2.75 billion in 2006.

In related news, GTCR Chairman Bruce Rauner is said to be scaling back his activities.

“He’s been in more of an advisory role for some time now and not as active sourcing deals, sitting on boards, etc.,” according to a source, who added that the transition becomes more “official” with the new fund.

GTCR invests in financial services and technology, health care and information services businesses. Most recently, the firm paid $828 million to acquire electronic surveillance company Protection One.

GTCR Fund IX had an IRR of -16% as of Dec. 31, according to data from the Washington State Investment Board. Funds VII and VIII are better performers. Fund VII posted an IRR of 25.3%, while fund VIII stood at 28.7%, the Washington State Board reported.

GTCR officials declined comment. —Luisa Beltran

Goldman Sachs considers PE spinoutGoldman Sachs Group Inc. executives are weighing spinning off at least a part of the bank’s private equity business following financial reform legislation, according to a report last week by Fox Business.

The discussions were prompted by concerns about the Volcker rule, which restricts the amount of ownership banks can have in buyout or hedge funds, the report said, citing a Wall Street investment banker with direct knowledge of the matter.

The report also cited unnamed Goldman executives as saying nothing was imminent as they believe under the Volcker rule the firm will have five to seven years for such a move.

Goldman was not immediately available for a comment. —Paritosh Bansal, Reuters

Greenspring eyes $300M

Greenspring Associates is raising upwards of $300 million for its second growth equity fund-of-funds, according to a regulatory filing. The firm previously was known as Montagu Newhall Associates.

Signal Hill, Updata mergeSignal Hill Capital Group has merged with Updata Advisors, to form an investment bank focused on small and mid-cap growth companies. The combined firm will be called Signal Hill, with a headquarters in Baltimore.