Additional Capital To Be Deployed For Future Investment Opportunities in Target Markets
New York, NY (September 8, 2009) -- KPS Capital Partners, LP ("KPS"), a leading special situations private equity firm, announced today the final closing on $800 million of additional capital for KPS Special Situations Fund III (“KPS Fund III” or the “Fund”), bringing total commitments to $2.0 billion. The additional capital will be deployed for future investments in turnarounds, restructurings, bankruptcies and other special situations and was raised to capitalize on the unprecedented number of opportunities in the market.
KPS Fund III originally closed in May 2007 with $1.2 billion of committed capital and launched its investment campaign in November 2007. Since that time the fund has made three platform investments, all of which are exceeding KPS’s expectations.
The additional capital was committed primarily by current KPS Fund III limited partners and select new investors. After notifying investors in June 2009 of its desire to upsize KPS Fund III by $800 million, KPS quickly received subscription requests of more than $1.3 billion, more than 50% above the $800 million target. The upsizing is the fourth oversubscribed institutional fundraise by KPS over the past eleven years.
Michael Psaros and David Shapiro, Co-Founders and Managing Partners of KPS, said, "We are humbled by the decisive response to KPS Fund III’s upsizing, given the historic dislocation in the global capital markets and especially for alternative investment fundraising. The successful upsizing reflects our track record, the strength of our investment strategy, our differentiated deal flow and the long-term continuity and depth of our senior investment team. We are very grateful to our Limited Partners for their continued confidence and support of KPS and for providing the additional resources necessary to fully capitalize on the opportunities in the market.”
Investors in KPS Fund III include leading public and private sector pension funds, best-in-class fund of funds, major financial institutions, endowments and foundations, and family offices from North America, Europe, Japan and Australia.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel in the formation of KPS Fund III and the upsizing.
About KPS Capital Partners
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.8 billion of assets under management (as of June 30, 2024). For over three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies generate aggregate annual revenues of approximately $21.6 billion, operate 245 manufacturing facilities in 26 countries, and have approximately 64,000 employees, directly and through joint ventures worldwide (as of June 30, 2024, pro forma for the recent acquisitions of Sport Group and Innomotics which closed on July 8, 2024 and October 1, 2024, respectively). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
