"KRG's success since its inception in 1996 is due in large part to the strong support of our investors," said Mark King, Managing Director and Co-Founder of KRG. "This support was evident in the demand we received from investors for Fund III and the fact we were able to complete the entire fundraising process in a relatively short time period." Fund III garnered the support from most all existing institutional investors while also attracting a number of new partners including state pension plans, universities and European investors. KRG tapped Probitas Partners to assist with raising Fund III, and according to Mr. King "they did an outstanding job in helping us raise this fund." Kirkland & Ellis LLP provided legal counsel.
Fund III will continue KRG's focus on acquisitions of profitable companies in the middle market that can benefit from a "buy and build" investment strategy. This strategy is based upon strong organic growth and acquisition growth driven by the delivery of additional products, services or capabilities to a company's end customer. "We have effectively and consistently employed this strategy since the firm's inception," said King. "This 'customer-centric' approach to investing combined with our active involvement with management teams in implementing strategic and quality initiatives post-investment has enabled us to deliver very competitive returns to our investors." With almost a decade of private equity investing experience and over $1.5 billion of capital under management, KRG Capital Partners has built a track record of success, having completed 20 platform acquisitions and 59 add-on acquisitions, selling six of those platform companies, and generating a net internal rate of return to its investors (on both realized and unrealized investments) of 26% since inception.
KRG has invested in such companies as CCS Medical, a direct-to-consumer mail-order supplier of quality, branded healthcare products; HMS Healthcare, a leading preferred provider organization (PPO) rental network facilitating the delivery of healthcare benefits; Accellent, an industry-leading precision contract manufacturer serving the Medical Device industry; Interior Specialists, Inc., the leading provider of outsourced interior design and installation services for homebuilders in the Western United States; and Aspen Marketing Services, an integrated marketing services company providing a wide array of direct marketing "turn-key" tailored solutions to Fortune 500 companies with speed and excellence.
Fund III currently has two platform companies under letter-of-intent, and is actively pursuing additional platforms in industry niches focused on certain macroeconomic and demographic trends including the aging population, outsourced manufacturing and other services, the advancement in life sciences technologies, healthy-living consumer products and increased infrastructure spending.
About KRG Capital Partners
Founded in 1996, KRG is a Denver-based private equity firm that currently has approximately $1.5 billion in assets under management. KRG specializes in acquiring and recapitalizing unique and profitable middle-market companies. The firm seeks investment opportunities for its partners where KRG can work in concert with owners and operating managers who are committed to expanding their companies and becoming industry leaders. The result is a partnership that focuses on creating a significantly larger enterprise through a combination of internal growth and complementary add-on acquisitions. For more information on KRG Capital Partners, please visit www.krgcapital.com.