KLH Capital has held a final close of KLH Capital Fund III, LP with $155 million in committed capital. KLH began fundraising in January 2016 and had a first close at $135 million in July. According to KLH, all of the investors from the firm’s second fund have invested in Fund III, including a substantial portion from KLH’s partners and founders.
“The final closing represents the strong confidence our limited partners have in our investment strategy and we are humbled to be investing on their behalf,” said Will Dowden, Partner.
KLH Capital is a SBIC-licensed private equity firm that invests in manufacturing, distribution and service companies with revenues between $10 million and $100 million and EBITDA of at least $2 million. Beginning with Fund III, KLH will make minority equity investments in addition to control investments. The firm is headquartered in Tampa (www.klhcapital.com).
Fund III made its first investment in May 2016 with the recapitalization of BMI Merchandise, a distributor of redemption and prize merchandise to family entertainment centers, amusement arcades, bowling centers, restaurants, cruise ships, movie theaters, theme parks, skating centers and sports complexes. BMI Merchandise has a 60,000 sq. ft. corporate headquarters and distribution center and is based about 70 miles south of New York City in Lakewood, NJ (www.bonitamarie-intl.com).
With the closing of Fund III, KLH added Josh Kuder to the firm as its newest partner. Mr. Kuder will be responsible for sourcing, closing, and managing investments.
“Josh will be a great asset for us as we expand our ability to provide solutions to management teams, entrepreneurs and business owners,” said James Darnell, a Partner at KLH. “He has a great track record as an investor and leader in the lower middle market, and is the perfect fit to round out our team.”
Prior to joining KLH, Mr. Kuder was a Senior Principal at Enhanced Capital Group, an SBIC-licensed private equity firm investing in lower middle market companies. Earlier in his career, he was Vice President and Head of Business Development for Linx Partners; Vice President and Co-Head of Transaction Origination for Florida Capital Partners; and Senior Analyst in the investment banking department of Legg Mason Wood Walker. Mr. Kuder has a BS in business administration from the University of Richmond.
© 2016 Private Equity Professional • 8-31-16
