Genstar targets $8bn for flagship fund

Genstar Capital Partners is raising capital for its biggest private equity vehicle.

Fund name: Genstar Capital Partners X
Target size: $8 billion
Stage of fundraising: Launched
Predecessor fund: Genster Capital Partners IX ($7 billion)
Management fee: 1.75% on invested capital
Carry: 20%
Hurdle rate: 8%

Genstar Capital Partners is currently in market fundraising for its 10th flagship private equity vehicle, targeting $8 billion in LP commitments. The firm is also raising an additional $2 billion overage sidecar vehicle to assist with the financing of larger transactions.

The San Francisco-based fund manager closed Genster IX in 2019, with $7 billion in committed capital and $1.1 billion overage capacity, according to a press release issued by the fund manager’s website.

The latest fund will target similar investments as its predecessors: financial services, TMT, healthcare, bioscience and industrial technology sectors across North America.

Nebraska Investment Council revealed in its latest board meeting notes that Genstar has a hurdle rate of 8 percent with 1.75 percent fee on invested capital. The carry rate was agreed to be 20 percent by the US pension fund.