Gen Cap America Closes Seventh Fund At $250M Hard Cap

Jan 10 2017 | 11:52pm ET

Regional private equity firm Gen Cap America has raised $250 million in capital commitments for its seventh lower middle-market buyout fund.

The new fund, named Southvest Fund VII, reached its hard cap in less than a year, the company said in a statement. Funds were raised largely from institutional investors including state and municipal pension plans.

The fund is organized to invest in management-led buyouts and recapitalizations of lower middle-market, profitable businesses with revenues typically between $5 million and $100 million, Gen Cap said. It has made one investment from the fund to date and will reportedly target up to 24 more.

“We formed Gen Cap America over 25 years ago and have built a strong, consistent run of success,” said Barney Byrd, president and CEO of Gen Cap, in a statement. “Since inception, we have achieved a profit for every fund on each portfolio company in all exits.” 

“As our national economy continues to improve, there are increasing attractive buying opportunities with strong upside,” added Don Napier, executive vice president of Gen Cap America. “We believe this is an opportune market for our strategy of investing in successful manufacturing, service and distribution companies with strong market share, and we’re pleased to already have our first portfolio company on board.”

Founded in 1998 and headquartered in Nashville, TN, Gen Cap America is one of the oldest private equity firms in the Southeast. The company raised $165 million for its sixth fund in 2009 and $85 million for Fund V in 2005.

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