The Houston-based CapStreet Group, a regionally-focused lower middle market private equity firm, has held an initial closing of its third fund, CapStreet III, with commitments exceeding US
The Houston-based CapStreet Group, a regionally-focused lower middle market private equity firm, has held an initial closing of its third fund, CapStreet III, with commitments exceeding USD80m.
The firm’s limited partners include corporate pension funds, life insurance companies, endowments, financial institutions and family offices. CapStreet III is targeting USD200m in total commitments.
‘We appreciate the confidence our limited partners have shown in CapStreet by investing in CapStreet III in today’s challenging economic environment,’ says chairman and chief executive George Kelly.
‘Because of current market dislocations, we believe that now is an excellent time to have capital, and that we will be able to selectively invest in lower middle market opportunities at increasingly attractive valuations.’
According to Kelly, the firm will continue to focus on control investments in family and other privately-owned businesses headquartered in Texas and other Sunbelt states, targeting investment sectors including value-added manufacturing and distribution, business services, infrastructure, and energy-related products and services.
CapStreet III has already completed investments in two Texas-based portfolio companies, GHX Holdings and Trinity Steel Holdings. GHX is a distributor of industrial gaskets and hoses serving process industries throughout the Gulf Coast. Trinity Steel is a provider of structural fabrication services to the petrochemical, refining, and engineering and construction markets.
The CapStreet Group is managed by principals Kelly, Michael Young, Neil Kallmeyer, Kathy Kohlmeyer, Paul De Lisi, and Park Durrett. Since 1990, CapStreet has acquired 27 portfolio companies and has completed more than 250 add-on acquisitions.
