Kingswood Capital Management has held an oversubscribed and hard cap close of Kingswood Capital Opportunities Fund I LP with $230 million of capital.
Limited partners in the new fund include public pension funds, insurance companies, endowments, foundations, multi-manager funds, and family offices.
Kingswood makes control equity investments from $15 million to $50 million in North American-based companies that have revenues from $100 million to $500 million and that have positive, negative or break-even EBITDA. The firm will opportunistically invest less than $15 million and, with the support of its limited partners, can invest up to $100 million per investment. Kingswood is specifically interested in companies with operational, transactional, and/or structural complexity.
Kingswood’s sectors of interest include business, government, and healthcare services; consumer and retail; energy and industrials; technology, media & telecommunications; and value-added distribution. The firm was founded in 2013 by Managing Partner Alex Wolf and is headquartered in Los Angeles.
“We are grateful for and humbled by the strong interest and support from our respected global base of limited partners,” said Mr. Wolf. “We do not take their confidence in us for granted and we look forward to being good stewards of their capital by following our disciplined and operationally focused investment approach. We are in the midst of an extraordinary market environment that presents both challenges and opportunities, but our experienced team of investment professionals and operators are prepared to support existing portfolio companies and source new compelling investment opportunities.”
Over the past three months, the new fund has acquired three platforms. In October 2020, the firm invested in Mountain Equipment Co-op (MEC), a Vancouver-based outdoor equipment retailer with 21 stores across Canada and an e-commerce platform. MEC was acquired through the Companies’ Creditors Arrangement Act (CCAA), the US equivalent of a chapter 11 bankruptcy. In January 2021, Kingswood closed the carve-out of Cost Plus World Market, a California-based specialty retailer of home products – furniture, decor, curtains, rugs, gifts, coffee, wine – from publicly traded Bed Bath & Beyond. Earlier this month, Kingswood acquired Senture, a Kentucky-based and family-owned provider of inbound and outbound contact center services to government agencies and commercial customers.
M2O Private Fund Advisors was the placement agent on this fundraise and Kirkland & Ellis provided legal services.
© 2021 Private Equity Professional | February 9, 2021
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