Genstar Capital LLC has raised about $900 million for its next private-equity fund, approaching a reduced goal of $1 billion, according to two people with knowledge of the San Francisco-based firm.
The target for Genstar Capital Partners VI LP was cut this year from $1.5 billion amid a tough fundraising environment, said the people, who asked not to be named because the information is private. Genstar will offer additional co- investment opportunities to investors seeking to put more money into deals, said one of the people. The firm expects to complete fundraising in the third quarter.
Chris Tofalli, a spokesman for Genstar, declined to comment.
Genstar started marketing the fund early last year. The management fee was lowered to 1.75 percent from 2 percent early in the process after negotiations with some large investors.
Genstar makes equity investments of $50 million to $400 million in middle-market companies focused on life sciences, health-care services, software and software services, financial services and industrial technology, according to its website.
The firm’s prior fund, which also targeted $1 billion, ended up with $1.55 billion in 2007.
Genstar’s most recent exit was in September, when it sold Woods Equipment Co., a distributor of aftermarket tractor parts, to Blount International Inc. (BLT) for about $185 million.
Jean-Pierre L. Conte is managing director and chairman of Genstar. He joined the firm in 1995, and previously worked as a principal at NTC Group, a private-equity firm focused on industrial technology companies.
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