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Genstar Capital closes latest fund, co-investments at nearly $4 billion

Genstar Capital closed in less than three months its latest middle-market private equity fund, Genstar Capital Partners VIII, at $3.1 billion, said Chris Tofalli, Genstar spokesman, in an email.

Genstar simultaneously raised $650 million in additional commitments from a few limited partners to invest in larger deals alongside the main fund for total capital raised of $3.95 billion. This is the first time Genstar raised additional capital to invest alongside one of its funds, said Tony Salewski, managing director, in an email. He declined to say whether fees and terms were the same for fund investors and investors in the side vehicle.

“The ($650 million) overage not only allows us to speak for bigger checks but to move more quickly since this is committed capital,” Mr. Salewski wrote.

The fund took 10 weeks to raise from launch to final close. Not counting the additional capital commitments, the new fund is 48% larger than Genstar’s 2015 fund, $2.1 billion Genstar Capital Partners VII. Including the overage, Genstar raised 88% more capital than its previous fund. Genstar committed about $200 million, making it the largest investor in the fund.

Investors in the fund include $23.1 billion Nebraska Investment Council, Lincoln.