CapStreet holds $80m first closing on third fund

CapStreet III has already invested in two platform companies, GHX Holdings and Trinity Steel Holdings. GHX is a Texas-based distributor of industrial gaskets and hoses serving process industries throughout the Gulf Coast. Trinity Steel is a Texas-based provider of structural fabrication services to the petrochemical, refining and engineering and construction markets.

George Kelly, chairman and CEO of CapStreet, said, 'We appreciate the confidence our limited partners have shown in CapStreet by investing in CapStreet III in today's challenging economic environment. 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.'

The firm will continue to focus on control investments in family and privately-owned businesses in Texas and other Sunbelt states. CapStreet's target investment sectors are value-added manufacturing and distribution, business services, infrastructure and energy-related products and services.

Since 1990, CapStreet has partnered with family businesses and management teams to acquire 27 portfolio companies and has completed more than 250 add-on acquisitions for these companies.

Copyright © 2008 AltAssets