True Wind invests in The Switch, first deal after KKR spinout

  • True Wind surpasses $500 mln for debut fund
  • GP backs acquisition by The Switch, a video-service provider
  • Deal didn’t involve traditional process, source said

True Wind Capital inked its first investment since it was founded by two Kohlberg Kravis Roberts executives: a financing deal for live-content provider The Switch.

Meanwhile, fundraising for its debut fund passed the $500 million mark, with as much as $100 million more on the horizon, and True Wind looks to close the fund in the next couple of months, according to a source.

True Wind maintained discipline in the face of high deal prices and passed on a number of opportunities before moving forward with The Switch, the source said. The firm found the transaction through contacts in the industry, outside the traditional investment-banking process.

“Live content and sports is the one piece of media content that continues to go up in value, with ad rates expected to rise,” the source said. “This investment is predicated on that.”

True Wind paid an undisclosed sum to back The Switch, a video-service provider for live sports events and other entertainment, in its bid to buy Pacific Television Center, a statement said.

As part of the deal to provide capital for the acquisition of Pacific Television, True Wind Capital bought out angel investors’ stakes in The Switch, the source said.

The Switch operates an international network of fiber-optic services for TV and Internet broadcasters in stadiums and arenas across the United States. Acquiring Pacific Television Center broadens its reach.

Adam Clammer and Jamie Greene, co-founders of KKR’s global technology group, launched San Francisco-based True Wind Capital in 2014.

A spokesman for the firm declined comment.

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Brawn GP Formula One driver Rubens Barrichello of Brazil kisses the TV camera on podium after the Italian F1 Grand Prix in Monza on Sept. 13, 2009. Photo courtesy Reuters/Stefano Rellandini