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CapStreet collects $325m for Fund IV

The lower mid-market firm launched its fourth fund last year.

The CapStreet Group has collected $325 million for its Fund IV, according to documents filed with the US Securities and Exchange Commission Monday.

CapStreet launched the fund last year with a $250 million target, according to Private Equity International’s Research and Analytics Division. However, CapStreet declined to comment regarding whether the firm has officially closed the fund. Fund IV had reached its target in January 2014, according to media reports.

Limited partners in the fund include the New York State Teachers’ Retirement System, according to PEI data.

Houston-based CapStreet makes control investments in lower mid-market companies based in Texas and other Sunbelt states, including California and Florida. Target businesses will have enterprise values of less than $150 million and will typically be owned by entrepreneurs, families or other non-institutional investors.

CapStreet raised $178 million on a $250 million target for its Fund III in 2010. Fund III LPs include Guardian Life Insurance Company of America and BAML Capital Access Funds Management. CapStreet II, a 2000 vintage, raised $370 million from LPs including HarbourVest Partners and New York Life Insurance Company, according to PEI data.

CapStreet portfolio companies include marine terminal operator and cargo handling company Gulf Stream Marine and healthcare facility certification company Vendor Credentialing Service, according to its website.

CapStreet was founded in 1990 and is led by co-founder and chairman George Kelly, who was previously a senior vice president at Houston-based private equity firm Duncan Cook & Company and investment banking firm Rotan Mosle. Managing partners Michael Young and Neil Kallmeyer also lead the investment team, according to the firm’s website.

Since the firm’s founding, CapStreet has led or co-led 35 acquisitions and more than 250 add-on acquisitions.