Kingswood Capital Management has held a final close its oversubscribed and above target third fund, Kingswood Capital Opportunities Fund III LP, with total capital commitments of $1.5 billion.
Kingswood began raising Fund III just 90 days ago and originally targeted $1.0 billion in total capital commitments. Limited partners in Fund III include endowments, foundations, health systems, public pension plans, family offices, funds of funds, and high-net worth individuals.
Nearly all of Kingswood’s investors from earlier funds re-upped for Fund III and the new fund added many new investors that expands Kingswood’s limited partner base in the United States, Europe, Asia, and for the first time, the Middle East.
“We are grateful to our existing and our new limited partners for their trust and support in Kingswood and their confidence in our ability to continue delivering strong returns as we seek to expand our capacity to drive value and growth for partners in the middle market,” said Alex Wolf, the managing partner of Kingswood. “With Fund III, we will continue our differentiated investment strategy of seeking out opportunities for asymmetric upside that other firms often overlook, while preserving downside protection and leveraging our network to attract and apply deep operational expertise. We believe this approach has resonated well with investors, allowing us to rapidly raise and deploy capital for our strategy, and grow the businesses in which we invest.”
“We are thrilled to continue the partnership with our existing investors, and we welcome our new partners as we continue to execute on our investment strategy,” said Kingswood Partners Michael Niegsch and Jim Renna in a released statement. “We believe we’ll be deploying Fund III into an accelerating market opportunity for Kingswood’s strategy of operationally focused investing.”
Kingswood makes control equity investments of $50 million to $150 million in North American-based companies that have revenues from $100 million to $500 million and have positive, negative, or break-even EBITDA. Kingswood’s sectors of interest include business, government, and healthcare services; consumer and retail; industrials and distribution.
Fund III is Kingswood’s third institutional fundraise in just over three years and follows its second fund which closed in January 2023 with over $620 million of capital commitments. With the close of Fund III, Los Angeles-headquartered Kingswood now has total assets under management of approximately $3.2 billion.
Lazard was the placement agent for Fund III and Kirkland & Ellis provided legal services.
© 2024 Private Equity Professional | July 23, 2024
