Kohlberg & Co circles $1.7 bln for Fund VIII

  • SEC filings: Kohlberg & Co approaching $2 bln target
  • LPs include Louisiana Teachers’ pension
  • Fund VII closed on $1.6 bln in 2013

Kohlberg & Co appears to have raised around $1.7 billion for its new flagship fund, according to several SEC filings. At that size, Kohlberg Investors VIII is the firm’s largest fund to date.

The Mount Kisco, New York, firm is seeking at least $2 billion for Kohlberg Investors VIII, a Hamilton Lane report prepared for Teachers’ Retirement System of Louisiana shows. Louisiana Teachers’ committed as much as $75 million to Fund VIII.

The firm did not respond to a request for comment.

15-17 firms, values up to $1 bln

Kohlberg & Co. plans 15 to 17 investments for Fund VIII, the Hamilton Lane report says. Typical Fund VIII portfolio companies will have enterprise values of as much as $1 billion. Kohlberg can invest as much as $300 million of equity per deal, a 33 percent increase from what the firm said it would invest with its previous vehicle.

The firm closed Kohlberg Investors VII on $1.6 billion in 2013. Kohlberg had drawn $858 million of Fund VII’s committed capital as of Dec. 31, Hamilton Lane says. Kohlberg & Co announced several add-on and platform acquisitions since then.

Fund VII was netting a 14.8 percent internal rate of return as of Dec. 31. Fund VI, its $1.55 billion 2007 vintage fund, netted a 16.7 percent IRR as of that date.

Jerome Kohlberg, a founding partner of Kohlberg Kravis Roberts & Co, launched Kohlberg & Co in 1987 to pursue investments in middle-market businesses. He passed away last year.

The firm is now led by Managing Partner Samuel Frieder and Chief Investment Officer Gordon Woodward.

Action Item: Kohlberg & Co: www.kohlberg.com

Hands are silhouetted against a backdrop projected with the picture of various currencies of money in this illustration taken April 4, 2016. Courtesy Reuters/Kacper Pempel