Kinderhook Industries has reached a first and final close of its fourth private equity investment fund, Kinderhook Capital Fund IV. Fund IV was launched twelve weeks ago with an initial target of $400 million and closed oversubscribed at its hard cap of $500 million.
Kinderhook Industries, LLC (“Kinderhook”) today announced the first and final close of its fourth private equity investment fund, Kinderhook Capital Fund IV (“Fund IV”). Fund IV was launched twelve weeks ago with an initial target of $400 million and was substantially oversubscribed; closing at its hard cap of $500 million.
“Since inception, Kinderhook has focused on the same disciplined, replicable and value-oriented approach to investing in the lower middle market. Fund IV will employ the same investment philosophy and management-focused strategy that has been the cornerstone of the firm’s success,” said Tom Tuttle, Managing Director at Kinderhook.
Chris Michalik, Managing Director at Kinderhook, remarked, “We are excited to continue to invest in the lower middle market on behalf of our expanded investor base and continue our success in building dominant companies in market niches. Consolidation has played an important part in our success. Across our 43 portfolio companies, we have completed 71 follow-on investments. Once built, these companies have proven to be attractive targets to strategic buyers, with 24 of our 27 realizations sold to strategics.”
Kinderhook’s investors are comprised of leading domestic endowments, foundations, family offices, pensions and other institutional capital bases.
Rob Michalik, Managing Director at Kinderhook, commented, “We received tremendous support from our longtime limited partners who have been investing with Kinderhook for over a decade and from new limited partners who embraced Kinderhook’s strategy and consistent track record. We are very grateful for the conviction and support from the limited partner community. Our ability to raise Fund IV in less than three months is a true testament to the strength of our team, the consistency of our investment strategy and our successful track record.”
Kirkland & Ellis LLP is Kinderhook’s fund counsel and served as legal adviser on the Fund IV capital raising campaign. UBS Securities LLC acted as the exclusive placement agent for Fund IV.
About Kinderhook Industries, LLC
Founded in 2003, Kinderhook Industries is a private equity firm with over $1.25 billion of committed capital and an investment philosophy based on combining senior management and operating experience in a variety of industries with the financial and investment know-how of private equity professionals. Kinderhook primarily makes control investments in companies with transaction values of $25-$150 million in which the firm can achieve significant financial, operational and growth improvements. The firm targets orphaned non-core subsidiaries of corporate parents, existing small capitalization public companies lacking institutional support and management-led recapitalizations of entrepreneur-owned companies. By providing access to capital, strategic advice and an extensive network of relationships, Kinderhook Industries has a history of successfully building privately held firms in partnership with management.