GTCR seals $820m exit amid fundraise

The Chicago-based mid-market firm, which is in market with its Fund XI, will exit security and defence services provider Six3 Systems.

GTCR will sell intelligence services company Six3 Systems to CACI International for $820 million, according to a statement from the firm.

Six3 provides national security and defence intelligence services to security agencies, the intelligence community and the Department of Defense. GTCR formed the McLean, Virginia-based company in July 2009 after partnering with Robert Coleman, the former president of national security technology company ManTech. Goldman Sachs & Company and JP Morgan Securities acted as Six3’s financial advisors during the transaction. 

GTCR’s partnership with Coleman focused on the theme of building a government technology-focused company to address the lack of data processing and data analysis in the security and defence sector, according to the firm. “Bob had a more refined thesis”, GTCR managing director Craig Bondy told Private Equity International. “Companies were out there that specifically had the capabilities to do this analytic processing work”. 

GTCR made its initial investment in Six3 by investing from its $2.75 billion Fund IX. During the holding period the firm completed four add-on acquisitions for Six3, including acquiring Harding Security in July 2009, according to Bondy. 

The exit comes as GTCR fundraises for its eleventh fund, which has a $3.25 billion target. Fund XI could raise as much as $3.5 billion, according to documents from the Ohio Police & Fire Pension Fund, which recently committed $50 million to the fund.

Fund XI is expected to hold a first close in mid-November. The fund will continue GTCR’s strategy of investing in North American mid-market companies in the healthcare, financial services, technology and information services sectors.