KV Capital launches Fund II, buys Mountain Sports Distribution

• MSD distributes for several brands in the powersports and avalanche safety industries, such as 509, TOBE Outerwear, FLY Racing, Sidi and Mammut
• With the investment, MSD plans to continue its growth by expanding brands and dealer partners across Canada and beyond
• KV Capital continues to seek new lower mid-market opportunities for KV Private Equity Fund II

KV Capital has launched KV Private Equity Fund II and completed the fund’s first acquisition of Mountain Sports Distribution (MSD), a Golden, British Columbia -based full-service distributor to the powersports industry. No financial details of the transaction were disclosed.

MSD distributes for several brands in the powersports and avalanche safety industries, such as 509, TOBE Outerwear, FLY Racing, Sidi and Mammut, covering a four-season spectrum from snowmobiling to summer moto sports. The company is led by founder and CEO
Chuck Gorton.

With the investment from KV Capital, MSD plans to continue its growth by expanding brands and dealer partners across Canada and beyond.

“We applaud MSD’s authenticity and are proud to partner with their team in continuing to build their market presence,” says KV Capital’s president, private equity, Jonathan Herman, in a statement. “We see significant opportunity to work together in supporting the continued development of their best-in-class enterprise.”

KV Capital is an Edmonton-based alternative investment fund manager with about C$350 million in assets under management. It continues to seek new lower mid-market opportunities for KV Private Equity Fund II.

For KV Capital, Ernst & Young served as the financial and tax advisor while Bryan & Company provided legal counsel for the acquisition. Bennett Jones and Deloitte Corporate Finance provided Fund II formation legal and tax advice, respectively. For MSD, Grant Thorntonacted as the financial advisor and Michael, Evrensel & Pawar delivered legal services.