Hammond, Kennedy, Whitney & Company (HKW) has completed the final closing of limited partner commitments for its latest private equity fund, HKW Capital Partners IV (Fund IV), with $316 million of capital commitments, exceeding its $300 million target.
“We appreciate the support from both our existing investor base and from several new institutional investors,” said HKW Chairman Glenn Scolnik. The majority of Fund IV commitments, 81%, are from institutional investors, including six insurance companies, four fund of funds, two state pension funds, and one university endowment.
Fund IV will invest primarily in lower middle-market companies headquartered in North America, consistent with the investment strategy HKW has used since it made its first control equity investment in 1983. Sectors of interest include energy services, infrastructure, and medical products.
“We will continue with our focused investment strategy of partnering with motivated management teams to grow companies for the benefit of all of our stakeholders. The fact that we were able to exceed our fundraising target is a great indication of the support for our strategy,” said HKW CEO Jeff Wood.
HKW has already completed four investments for the new fund as follows: Brant Instore – a provider of marketing services to retailers (www.brantinstore.com); Mobile Tech – a provider of loss prevention and merchandising services to the mobile technology industry (www.mobiletechinc.com); Specialized Desanders – a provider of de-sanding services for the oil and gas industry (www.specializedtech.ca); and EnerSafe – a provider of safety equipment and services to the oil and gas industry (www.enersafellc.com).
HKW’s previous private equity funds were HKW Capital Partners II, a $100 million fund which acquired 14 companies, and HKW Capital Partners III, a $255 million fund which also acquired 14 companies.
Hammond, Kennedy, Whitney & Company invests in companies with revenues between $20 million and $200 million and EBITDAs between $2 million and $20 million. Over the past 29 years, HKW has completed 44 platform management buyouts of small middle-market companies throughout North America as well as 49 add-on acquisitions. The firm was founded in 1903 and is headquartered in Indianapolis with an additional office in New York (www.hkwinc.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-22-14