CHICAGO – GTCR Golder Rauner, L.L.C., founded in 1980 under the name Golder, Thoma, Cressey, Rauner, Inc., is a private equity firm that invests in the information technology, marketing, niche financing, payroll processing and education/training industries.
Two years ago, Golder Thoma split into two firms, GTCR Golder Rauner and Thoma, Cressey Equity Partners – due to disagreements involving fund size. There also was, however, a reported personal rift between founding principals Bruce Rauner and Carl Thoma, according to sources.
Unlike its previous investment strategy, GTCR Golder Rauner does not focus on industry roll-ups, said Mr. Rauner, the firm’s general partner. Instead, the firm tries to pair talented executives with fragmented but growing consolidated companies, mostly in service industries, he said. The firm does not invest in industries such as oil, natural gas, timber, real estate, auto supply and restaurants.
GTCR Golder Rauner’s first and only vehicle, GTCR Fund VI, held a final close on $870 million in May 1998. All previous funds under Golder Thoma were fully invested, including Golder, Thoma, Cressey, Rauner Fund V, which raised $521 million and closed July 1996. GTCR Golder, Rauner prefers to invest between $20 million and $60 million in portfolio companies. “We are still able to invest in the types of deals we did 10 years ago, only now we can also invest in bigger deals,” Mr. Rauner said.
GTCR Golder Rauner’s limited partners include Bell Atlantic Asset Management Co., Endowment Advisors, The Ford Foundation, Hughes Aircraft Retirement Fund, Iowa Public Employees Retirement System, JP Morgan Private Equity Group, Northwestern University and Yale University.
Mr. Rauner is managing principal. GTCR Golder Rauner’s principals include Philip Canfield, David Donnini, Donald Edwards, Edgar Jannotta, Jr., William Kessinger, Joseph Nolan and Stanley Golder.
Select GTCR portfolio companies follow:
Accountec, L.L.C. (East Hampton, N.Y.) provides accounting and finance staffing services.
AnswerThink Consulting Group (Miami, Fla.) is a publicly traded company that provides corporations with information technology consulting services.
Miller Capital is a co-investor.
AppNet Systems Inc. (Bethesda, Md.) provides Internet-based information technology services to business-to-business and business-to-customer solutions for large corporations.
DeLite Outdoor Advertising L.L.C. (Minneapolis, Minn.) provides outdoor advertising services to various markets.
Excaliber Tubular Inc. (Ballwin, Mo.) is a manufacturer of mechanical and structural steel tubes.
FutureNext Consulting Inc. (McLean, Va.) is a supplier of supply chain-focused information technology consulting services.
Keystone Group Holdings Inc. (Tampa, Fla.) acquires funeral homes and cemeteries.
LifeCare Management Services (Dallas, Texas) is an operator of long-term acute care hospitals.
Lighthouse Holding Inc. (Chicago, Ill.) is an acquirer of specialty marketing services in areas including direct marketing, sales promotion, sports marketing and ethnic marketing.
Frontenac Co. is a co-investor.
NSC Communications Corp. (Pleasanton, Calif.) operates and services pay phones, as well as resells long distance services to other private pay phone operators.
Outsource Partners Inc. (Roswell, Ga.) consolidates the security guard business.
Park City Solutions Inc. (Midway, Utah) provides information technology consulting services to health care providers.
Province Healthcare Co. (North Charleston, S.C.) is a publicly-traded company that consolidates rural hospitals.
Risk Management Alternatives Inc. (Duluth, Ga.) acquires and consolidates collections and receivables management companies.
Trans Healthcare Inc. (Camp Hill, Pa.) develops and operates post-acute networks composed of specialty hospitals, nursing facilities and outpatient centers.
U.S. Aggregates Inc. (Clemson, S.C.) produces crushed stone and other related materials.
U.S. Fleet Services Inc. (Horsham, Pa.) provides mobile onsite fleet fueling.
Vista Information Technologies Inc. (Herndon, Va.) provides telephony and computer network systems integration.
GTCR Golder Rauner, L.L.C. is located at 6100 Sears Tower, Chicago, Ill. 60606 tel. (312) 382-2200, fax. (312) 382-2201.