Wanted gentleman caught in act (7)
I believe the answer is:
desired
'wanted' is the definition.
(similar in meaning)
'gentleman caught in act' is the wordplay.
'gentleman' becomes 'sir' (a man may be addressed as sir).
'caught in' is an insertion indicator.
'act' becomes 'deed' (deed is a kind of act).
'sir' inserted inside 'deed' is 'DESIRED'.
(Other definitions for desired that I've seen before include "requested" , "much wished for" , "Lusted-after" , "Sought after" , "Wanted greatly" .)