New York, NY (October 15, 2019) -- KPS Capital Partners, LP (“KPS”) announced today that the first and final closings of KPS Special Situations Fund V (“KPS Fund V”) and KPS Special Situations Mid-Cap Fund (“KPS Mid-Cap”) were simultaneously held on October 15, 2019. KPS Fund V and KPS Mid-Cap, with $7.0 billion in total investor capital commitments, will both focus on control investments in highly complex corporate carve-outs, turnarounds, restructurings, bankruptcies and other special situations.
KPS Fund V, with a $5.0 billion target and a $6.0 billion self-imposed hard cap, and KPS Mid-Cap, with a $750 million target and a $1.0 billion self-imposed hard cap, were both oversubscribed. The capital commitments for the two funds were raised in approximately four weeks.
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 KPS Fund V and KPS Mid-Cap. We are grateful for the trust and support in our firm by many of the world's leading institutional investors. The success of this fundraise demonstrates the close relationships we have established with our limited partners over decades. We welcome many new investors from around the world and are pleased to have the continued support of our returning limited partners.
“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 is the result of our operations-focused investment strategy, the long-term continuity of our partnership and the strength of our core investment team.”
The KPS Fund V investment team will be managed by Co-Managing Partners Michael Psaros, David Shapiro, and Raquel Palmer, and Partners Jay Bernstein, Ryan Baker and Kyle Mumford, who together lead a team of experienced and talented professionals.
KPS Mid-Cap will focus on investments in the lower end of the middle market that require up to $100 million of initial equity capital. KPS Mid-Cap will target the same type of investment opportunities and utilize the same investment strategy as the KPS Flagship Funds have for over two decades. KPS Mid-Cap will leverage and benefit from KPS’ global platform, reputation, track record, infrastructure, best practices, knowledge and experience.
The KPS Mid-Cap investment team will be managed by Partners Pierre de Villeméjane and Ryan Harrison, who lead a team of experienced and talented professionals.
Raquel Palmer, Co-Managing Partner and Chair of KPS' Investment Committee, said, "We are excited to launch our Mid-Cap investment franchise today with this fund closing. KPS Mid-Cap will enable us to pursue attractive investment opportunities that we have not been able to capitalize on due to size as our flagship funds have grown. We were tremendously successful in this market in the past and are excited to return, now with our entire firm's material resources and global platform. KPS Mid-Cap will enjoy a significant competitive advantage in this market by leveraging the scale and experience of the larger KPS family."
Kirkland & Ellis LLP served as legal counsel to KPS Fund V and KPS Mid-Cap.
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 $21.8 billion of assets under management (as of June 30, 2024). 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 $21.6 billion, operate 245 manufacturing facilities in 26 countries, and have approximately 64,000 employees, directly and through joint ventures worldwide (as of June 30, 2024, pro forma for the recent acquisitions of Sport Group and Innomotics which closed on July 8, 2024 and October 1, 2024, respectively). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
