Kingswood Capital Management, a lower-middle market private equity firm, has closed its oversubscribed debut fund at $230 million. Kingswood Capital Opportunities Fund I’s limited partners include public pension funds, insurance companies, endowments, foundations, multi-manager funds and family offices. M2O Private Fund Advisors was placement agent for the fund while Kirkland & Ellis LLP served as legal advisor.
LOS ANGELES, Feb. 8, 2021 /PRNewswire/ — Kingswood Capital Management, LP (“Kingswood” or the “Firm”), an operationally-focused lower-middle market private equity firm, today announced the closing of Kingswood Capital Opportunities Fund I (the “Fund”). The Fund was oversubscribed and closed at the hard cap with total commitments of $230 million. The Fund received commitments from a balanced group of high-quality limited partners, including public pension funds, insurance companies, endowments, foundations, multi-manager funds, and family offices.
The Fund will seek to make value-oriented control buyouts and structured debt and equity investments in companies that are headquartered in North America and characterized by operational, transactional, and/or structural complexity where the Firm believes it can make a significant and positive impact by leveraging its operational and strategic expertise and relationships. Target companies for initial platform investments will typically have over $100 million of revenue. The Fund will generally seek to invest from $15 million to $50 million per investment, but in certain circumstances may invest less than $15 million and with the support of its limited partners, can invest up to $100 million per investment.
Alex Wolf, Managing Partner of Kingswood, said, “We are grateful for and humbled by the strong interest and support from our respected global base of limited partners. 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.”
Kingswood has been very active recently, having closed three new platform investments out of the Fund over a three-month period. On October 30, 2020 Kingswood acquired Mountain Equipment Co-op, Canada’s leading outdoor retailer, through Canada’s Companies’ Creditors Arrangement Act. On January 15, 2021 Kingswood closed the acquisition of Cost Plus World Market, a specialty retailer of home products sourced from around the world, from Bed Bath & Beyond in a corporate carve-out transaction. Most recently, on February 1, 2021, Kingswood acquired Senture, an industry-leading provider of multi-channel contact center solutions to government agencies, commercial customers, and large system integrators, from its family owners.
M2O Private Fund Advisors acted as the exclusive placement agent for the Fund, and Kirkland & Ellis LLP served as legal advisor for the Fund.
About Kingswood Capital Management, LP
Kingswood Capital Management, LP is a private investment firm primarily focused on investing in businesses in transition. In addition to access to capital, Kingswood brings relevant industry relationships and a broad network of internal and external operating resources that can strengthen the businesses it partners with and enhance value. Kingswood has extensive experience with complex transactions where it provides tailored solutions that ensure the best outcome for all constituents. For more information, please refer to the Kingswood website at www.kingswood-capital.com.