KPS CAPITAL PARTNERS RAISES $9.7 BILLION
New York, NY (November 1, 2023) -- KPS Capital Partners, LP (“KPS”) announced today final closings of KPS Special Situations Fund VI (“Fund VI”) and KPS Special Situations Mid-Cap Fund II (“Mid-Cap Fund II”) were simultaneously held on October 25, 2023. Fund VI and Mid-Cap Fund II, with $9.7 billion in aggregate capital commitments, will continue KPS’ over 25-year focus on making control investments in highly complex corporate carve-outs, turnarounds, restructurings and other special situations.
Fund VI and Mid-Cap Fund II were oversubscribed with aggregate capital commitments over 36% greater than their predecessor funds with $7.1 billion in aggregate capital commitments.
Michael Psaros and David Shapiro, Co-Founders and Managing Partners of KPS, said, “We are humbled by the demand from the global investment community for Fund VI and Mid-Cap Fund II. We thank so many of the world’s leading institutional investors for their trust and support of our firm.
The success of this fundraise demonstrates the long-term partnership we established with our investors over decades. We are pleased to have the continued support of our returning limited partners and to welcome many new limited partners. With investors from 30 countries, our investor base reflects the global nature of our firm and its portfolio companies.
We are proud of our ability to create real value by seeing value where other investors do not, buying right and making businesses better - across decades, industries, and financial, business and economic cycles. We believe our success and strong investment returns over 25 years are attributable to the tenure and continuity of our partnership, the strength of our core investment team and our operations-focused investment strategy.”
Raquel Palmer, Co-Managing Partner and Chair of KPS’ Investment Committee, added, “We have $13.6 billion of equity capital to invest across our KPS platform today. We raised Fund VI and Mid-Cap Fund II at precisely the right time, in precisely the right market and look forward to aggressively capitalizing on the immense investment opportunity to come.”
The Fund VI investment team will be managed by Co-Managing Partners Michael Psaros, David Shapiro and Raquel Palmer, and Partners Jay Bernstein, Ryan Baker, Kyle Mumford and Rahul Sevani, who together lead a team of experienced and talented professionals.
Mid-Cap Fund II will focus on investments in the lower end of the middle market that generally require less than approximately $200 million of initial equity capital. KPS Mid-Cap targets the same type of investment opportunities and utilizes the same investment strategy that KPS’ flagship funds have for over 25 years. KPS Mid-Cap leverages KPS’ global platform, reputation, track record, infrastructure, best practices, knowledge and experience. The Mid-Cap Fund II investment team will be managed by Partners Pierre de Villeméjane and Ryan Harrison, who lead a team of experienced and talented professionals.
Kirkland & Ellis LLP served as legal counsel to Fund VI and Mid-Cap Fund II.
About KPS Capital Partners, LP KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.6 billion of assets under management (as of June 30, 2023, pro forma for the final close of Fund VI and Mid-Cap Fund II).1 For over three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies currently generate aggregate annual revenues of approximately $20.4 billion, operate 223 manufacturing facilities in 26 countries, and have approximately 48,000 employees, directly and through joint ventures worldwide (as of September 30, 2023). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
1 Assets under management (“AUM”) or capital under management is comprised of AUM as of June 30, 2023 plus additional uncalled capital commitments as of October 25, 2023.
