New York, NY (May 21, 2007) -- KPS Capital Partners, LP ("KPS"), a leading special situations private equity firm, announced today the first and final closing of KPS Special Situations Fund III (“KPS Fund III” or the “Fund”), a $1.2 billion fund focused on controlling investments in turnarounds, restructurings, bankruptcies and other special situations. KPS received commitment requests of over four times the Fund’s target of $1.0 billion.
KPS Fund III is the third oversubscribed institutional private equity fund raised by KPS over the past ten years. Investors in the Fund include leading public and private sector pension funds, best-in-class fund of funds, major financial institutions, endowments and foundations, and family offices from North America, Europe and Asia.
Michael Psaros, Co-Founder and Managing Partner of KPS, said, "We are delighted by the positive reception KPS Fund III received from the global investment community. The demand for our new fund reflects the success of our investment strategy, differentiated deal flow and the long-term continuity and depth of our senior investment team. We are gratified by the support we received from such a prestigious group of returning and new limited partners.”
The KPS Fund III investment team will be led by Co-Founders and Managing Partners Michael Psaros and David Shapiro, Partners Raquel Palmer and Jay Bernstein, and an expanding group of experienced investment turnaround professionals. Stephen Hoey will serve as Partner, Administration and Chief Financial Officer. Messrs. Psaros and Shapiro have worked together as a team for almost sixteen years, with Ms. Palmer for over twelve years, and Mr. Bernstein for eight years.
The investment period for KPS Fund III will commence following the conclusion of KPS Special Situation Fund II’s investment campaign.
Mac Hofeditz of Probitas Partners, which acted as placement agent for KPS Fund III, added, “The strong demand for the Fund is a testament to KPS’ proven turnaround expertise, consistent top-decile results, unique deal flow and the continuity of its partnership and core investment team. Limiting the Fund’s size in the face of such extraordinary demand is rare, if not unprecedented, in my experience, and is indicative of KPS’ disciplined approach to investing capital and managing its franchise.”
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel in the formation of KPS Fund III.
About KPS Capital Partners
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.4 billion of assets under management (as of December 31, 2023). 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 generate aggregate annual revenues of approximately $20.3 billion, operate 222 manufacturing facilities in 26 countries, and have approximately 48,000 employees, directly and through joint ventures worldwide (as of December 31, 2023). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
