Firm: GCP Capital Partners
Fund: GCP Capital Partners III LP
Target: $700 million
Placement Agent: Greenhill & Co. fund placement advisory group
The former investment arm of advisory firm Greenhill & Co. is trying to raise $700 million for the fund,
The source said limited partners in general continue to be cautious with allocations, with some choosing to wait and see what the first few investments look like, as well as what other institutions are backing the fund.
GCP Capital is also closing in on a buyout of an insurance brokerage company, which should close in December, the source said.
GCP Capital typically writes equity checks of $10 million to $75 million per transaction, targeting companies in the business services, financial services, education, energy, insurance and telecommunications sectors. Target companies usually have enterprise values of $50 million to $500 million.
The firm generated a good return on a recent exit, which could help it attract investors to the latest fund. On Sept. 30,
The firm originally had planned to begin raising capital in January 2009, but like many buyout shops shelved the effort during the economic downturn.
The firm raised $875 million in 2005 for its second fund, which has achieved a net investment multiple of 2x and a net IRR of more than 30 percent, our source said.