--- title: "The Capstreet Group Closes $500 Million Fund V" description: "(December 11, 2019): The Capstreet Group, LLC (“Capstreet”), a Houston, Texas based private equity firm that invests in privately held, lower middle-market..." url: https://capstreet.multisites.ai/news/the-capstreet-group-closes-500-million-fund-v publisher: Capstreet phone: +1-713-332-2700 contact: https://capstreet.multisites.ai/contact --- # The Capstreet Group Closes $500 Million Fund V OtherPublished December 11, 20193 min read ![Capstreet team members at Houston Reads Day](https://capstreet.multisites.ai/_astro/houston-reads-day.DxNd9bIr_Z23gxjt.webp) (December 11, 2019): The Capstreet Group, LLC (“Capstreet”), a Houston, Texas based private equity firm that invests in privately held, lower middle-market companies, today announced the final closing of Capstreet V, L.P. at its hard cap, with total commitments of $500 million. Capstreet V exceeded its original target of $400 million with commitments from a diverse group of existing and new investors. “We were pleased with the strong support that we received from our existing base of limited partners, and we were also fortunate to be able to expand this investor base by adding a select group of new limited partners to Capstreet V,” said George Kelly, Capstreet Managing Partner. “Capstreet V will continue its existing strategy of recapitalizing entrepreneur and family-owned businesses where there is a defined strategy to accelerate growth through operating initiatives, technology enhancement and strategic M&A.” Capstreet targets companies operating in the industrial and outsourced business service sectors, including tech enabled services and software businesses. Capstreet’s approach is to partner with strong management teams with the goal of building out corporate infrastructure, accelerating growth and profitability, and creating long term sustainable businesses. “The success of Capstreet V’s fundraise underscores the team’s track record and strong investment strategy,” said Neil Kallmeyer, Capstreet Managing Partner. “We will continue to execute on our distinct investment sourcing strategy, and then deploy our Operating Executive team to bring expertise in technology, business process improvement, distribution and other functional areas to our portfolio companies. Capstreet will continue its core strategy of investing primarily in companies with $3 million to $15 million of EBITDA in its geographic region, and then utilize its operational playbook to accelerate growth and profitability.” Since the firm’s founding in 1990, Capstreet has invested in 46 initial platform companies. Willkie Farr & Gallagher LLP provided legal counsel on behalf of Capstreet V, L.P. ## Terms on this page - [Private Equity](https://capstreet.multisites.ai/glossary/private-equity) - [EBITDA](https://capstreet.multisites.ai/glossary/ebitda) ## Keep reading - [Automotive technology private equity for dealer-focused companiesCapstreet invests in automotive technology businesses that help dealerships. The firm targets solutions for sales, marketing, finance and insurance, and service lane operations. It describes several recent investments in the sector and looks for owners with $3 to $15 million of EBITDA who want a majority capital partner.](https://capstreet.multisites.ai/industries/automotive) - [Business Succession and Exit Options: How to Choose the Right Next Step for Your CompanyOwners have five main exit paths: transfer to family, sell to management, sell to employees through an ESOP, sell to a strategic buyer, or partner with private equity. Each trades price, speed, control and legacy differently. Start planning at least three to five years before you want to step back.](https://capstreet.multisites.ai/business-succession-and-exit-options) - [Buy and Build Strategy: How a Platform Company Grows Through Add-On AcquisitionsA buy and build strategy starts with one well-run platform company and adds smaller businesses to it over time. The goal is a larger, more capable company than any single piece could be. It fits fragmented industries best. Owners of smaller firms can sell to a platform and often stay on.](https://capstreet.multisites.ai/buy-and-build-strategy) - [Construction technology private equity for software ownersCapstreet believes technology can drive large changes in construction efficiency and project delivery. It targets software businesses that support project and financial management for general contractors and sub-contractors. The firm sees the industry as early on its technology adoption curve and looks for owners with $3 to $15 million of EBITDA.](https://capstreet.multisites.ai/industries/construction) - [Capstreet deal criteria: the companies we look forCapstreet looks for entrepreneur-owned business services companies with $3 to $15 million of EBITDA. We make primarily majority investments, and entrepreneurs reinvest alongside Capstreet. We want a tenured team, solid financials, a defensive business model, untapped growth potential and a niche advantage. We invest across 12 industries.](https://capstreet.multisites.ai/deal-criteria) - [The due diligence checklist for owners selling to private equityDue diligence is the buyer's check of your business after you sign a letter of intent. Private equity firms review five areas: financial (quality of earnings), operations, tax, HR and benefits, and legal. Owners who gather clean records before the process starts shorten it and face fewer surprises.](https://capstreet.multisites.ai/guides/due-diligence-checklist-for-owners) ## Ready to get started? Let’s talk. Tell us about your company and what you want next. Conversations are private, and there is no obligation. [Start a conversation](https://capstreet.multisites.ai/contact) [(713) 332-2700](tel:+1-713-332-2700)[connect@capstreet.com](mailto:connect@capstreet.com) ![Capstreet team members at a Houston elementary school for Houston Reads Day](https://capstreet.multisites.ai/_astro/houston-reads-day.DxNd9bIr_tggWP.webp)