The fund is so hot that it has generated $9 billion worth of interest, source says. KPS is doing a “first and final” for the pool, a different source says.
“They’re definitely a fund people want,” the source says.
KPS is not using a placement agent.
New York-based KPS, a special situations investor, raised $2 billion with its last pool in 2009. KPS Special Situations Fund III originally closed at $1.2 billion in 2007, but the firm ended up raising $800 million in additional capital that brought total commitments to $2 billion. The pool is generating a net IRR of 19.3%, according to June 30 data from CalPERS. The firm’s second fund collected $404 million in 2004. Performance data was unavailable for fund II.
KPS typically invests from $50 million to $300 million per deal. The firm scored three exits in 2012. KPS, in December, completed its sale of North American Breweries Holdings to Cervecerίa Costa Rica, a unit of Florida Ice and Farm Co., for $388 million. KPS earned a return of more than 9x invested capital on the sale, Reuters has reported.
Several KPS portfolio companies have also issued distributions recently. This month, WWRD Holdings paid out $50 million to shareholders, while Global Brass and Copper made a $160 million distribution in June and HHI Group, before it was sold, issued a $70 million distribution to shareholders in March.
Officials for KPS did not return calls for comment.