Buyout firm Genstar raises over $10 billion for tenth midmarket fund

(Reuters) – Genstar Capital, which is focused on investments in financial services, healthcare, industrials and software industries, said on Monday it had raised more than $10 billion for its tenth flagship fund.

The announcement comes less than two years after the buyout firm raked in $7 billion for its ninth fund.

U.S. private equity fundraising dropped to $203.2 billion in 2020 from its record high of $320.5 billion in 2019, according to data from Pitchbook, underscoring investor apprehension towards record high buyout prices.

With $33 billion of assets under management, San Francisco-based Genstar primarily focuses on midmarket companies. Its portfolio includes proxy advisory firm Institutional Shareholder Services, software vendor Bullhorn and digital video software provider Telestream.

Besides $10.2 billion for the most recent fund, named Fund X, Genstar also raised about $1.5 billion for an additional vehicle that will be used to co-invest in larger deals, the company said.

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