Middle-market investor Kohlberg & Company has completed the final closing of its 10th private equity fund, Kohlberg Investors X LP (Fund X), securing $4.3 billion in commitments. Additionally, the firm raised $1 billion in commitments for co-investment vehicles dedicated to investing alongside Fund X.
Over 125 investors participated as limited partners in Fund X, including public pension funds, financial institutions, endowments, consultants, corporate pensions, sovereign wealth funds, family offices, and funds-of-funds. Commitments came from investors across the United States, Canada, Latin America, Europe, the Middle East, and Asia.
“We are deeply gratified by the tremendous support from our existing limited partner base and are pleased to welcome a robust and distinguished group of new investors into the Kohlberg community,” said Sam Frieder, a managing partner at Kohlberg. “We are humbled by the enthusiasm expressed towards the firm as experienced stewards of capital over our nearly four-decade history.”
“We are delighted with the strong demand for Fund X and also pleased to have diversified Kohlberg’s reach and relationships, both globally and in new channels,” said Jessica Hoffman Brennan, a partner and the head of strategy and investor relations at Kohlberg. “Our consistent and accelerating track record, including significant liquidity returned to investors over the past three years, resonated during our marketing efforts for Fund X.”
Kohlberg invests in companies within the pharmaceuticals, medical products and services, infrastructure services, financial and compliance services, business services, healthcare services, food, and consumer sectors. The firm targets companies with EBITDA between $25 million and $150 million, where it can invest between $100 million and $500 million in equity. Over its 37-year history, Kohlberg has completed 95 platform investments and over 290 add-on acquisitions, with a total transaction value exceeding $46 billion.
Earlier this month, Kohlberg acquired CLEAResult, a Texas-based designer and implementer of energy efficiency programs used by utilities, governments, and commercial clients to reduce energy usage, costs, and emissions. CLEAResult was acquired from TPG.
“The firm looks forward to continuing to mobilize our differentiated, sector-specialized expertise and thesis-driven White Paper investment strategy toward being the clear partner of choice for sellers and management teams,” said Gordon Woodward, a partner and chief investment officer at Kohlberg. “We are excited to construct a Fund X portfolio that builds upon our legacy of successful business transformation and value creation.”
Founded in 1987, Kohlberg has over 90 investment and portfolio support professionals and is headquartered in Mt. Kisco, New York. In March 2018, Blackstone acquired a minority equity interest in the firm. Kohlberg’s previous fund, Kohlberg Investors IX LP, closed with $3.4 billion in total capital commitments in February 2021.
As with its earlier funds, Lazard served as the placement agent for Fund X, and Ropes & Gray provided legal services.
© 2024 Private Equity Professional | September 17, 2024
