Private equity firm Hammond, Kennedy, Whitney & Company said Monday that it has raised approximately $316 million in the final close of its fourth fund. The pool’s target was $300 million. According to the firm, its LPs include six insurance companies, four fund of funds, two state pension funds and one university endowment. The fund will invest in North America-based lower middle-market firms.
(INDIANPOLIS, IN) Hammond, Kennedy, Whitney & Company, Inc. (“HKW”) announced today that it completed the final closing on limited partner commitments of its latest private equity fund, HKW Capital Partners IV (“Fund IV”). Fund IV exceeded its $300 million target, closing on approximately $316 million in aggregate commitments. 81% of Fund IV commitments are from institutional investors, including six insurance companies, four fund of funds, two state pension funds, and one university endowment.
Fund IV will invest primarily in lower middle-market companies headquartered in North America, consistent with the investment strategy HKW has used since its first controlling equity investment in 1983. Fund IV will target investments in growing markets including favored sectors such as energy services, infrastructure, and medical products.
“We appreciate the support from both our existing investor base and from several new institutional investors,” said HKW Chairman Glenn Scolnik. HKW CEO Jeff Wood added, “We will continue with our focused investment strategy of partnering with motivated management teams to grow companies for the benefit of all of our stakeholders. The fact that we were able to exceed our target is a great indication of the support for our strategy.”
To date, HKW IV’s portfolio includes four companies:
· Brant Instore Corporation, a full-service provider of marketing solutions for retailers (www.brantinstore.com);
· Mobile Tech, Inc., a leading provider of loss prevention and merchandising solutions for the mobile technology industry (www.mobiletechinc.com);
· Specialized Desanders Inc., a developer and provider of engineered de-sanding solutions for the oil and gas industry (www.specializedtech.ca); and
· EnerSafe, Inc., a leading provider of safety equipment and services in the oil and gas industry (www.enersafellc.com).
HKW’s previous private equity funds were HKW Capital Partners II, including its parallel and supplemental funds, a $100 million fund which acquired 14 companies, and HKW Capital Partners III, including its parallel and supplemental funds, a $255 million fund which also acquired 14 companies.
HKW is a private equity firm founded in 1903 with offices in Indianapolis and New York. Since 1982, HKW has sponsored 44 platform transactions of lower middle-market companies throughout North America as well as 49 add-on acquisitions. For further information on HKW, please visit www.hkwinc.com.