GTCR raises its biggest fund ever – Finance News

on Oct11

11 October 2017 | 6:31 pm

GTCR, one of the biggest private-equity firms in Chicago, said it has raised $5.25 billion to form the biggest investment fund in its 37-year history.

The firm, whose leadership formerly included Illinois Gov. Bruce Rauner, said 85 percent of the money came from existing investors, most of whom increased the size of their prior commitments for this new 12th GTCR fund.

Private-equity firms raise money mainly from institutional investors, like foundations, pensions and endowments, as well as wealthy individuals, and then invest their own money alongside the investors’ by buying private companies or taking public companies private.

Over a 10-year period, typically, they seek to expand the companies and increase efficiencies, often reshaping operations and cutting workers, so they can sell the companies later at a profit, sometimes by taking them public.

“With a larger, more experienced investment team in place, we have the organizational capacity to pursue more and potentially larger-scale investment opportunities,” Managing Director Craig Bondy said in a statement.

The fund rivals the $6 billion megafund raised last year by Chicago firm BDT Capital Partners, an investment firm led by Byron Trott that also invests in private companies, usually those still led by their founders.

GTCR has invested $14 billion in some 200 companies since its founding in 1980 and currently has about $13 billion under management, the firm said.



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