DENVER--(BUSINESS WIRE)--KRG Capital Partners (“KRG”), a Denver-based private equity firm, announced today the final closing of KRG Capital Fund IV, L.P. (“Fund IV”) at $1.96 billion. Fund IV exceeded the firm’s initial target of $1.25 billion when the fund was launched in May 2007. Fund IV joins KRG’s vintage 1999 Fund I, vintage 2001 Fund II and vintage 2005 Fund III, resulting in nearly $3.32 billion in fund capital raised over the last eight years.
“The firm celebrated its eleven-year history this past winter, and as we reflect on our successes over this period, we are grateful for the strong support of all our investors and the hard work and commitment of our firm’s partners and employees,” said Mark King, Managing Director and Co-Founder of KRG. “Substantially all of our existing investors re-upped for Fund IV and we appreciate their continued partnership. We also look forward to working with our new institutional investors that made commitments to Fund IV.” KRG garnered support from a wide array of U.S., Canadian and European investors, including pension plans, insurance companies, university endowments, corporate and high net worth investors, and fund of funds investors. “The demand from existing investors was greater than anticipated, and that demand complemented by a targeted effort to broaden and diversify our investor base was instrumental in helping us reach our fundraising goals,” said Mr. King.
Fund IV will continue KRG’s focus on acquisitions of profitable companies in niche middle market industry sectors that can benefit from a “buy and build” investment strategy. Fund IV will target platform companies with EBITDA ranging from $10 million to $75 million giving the firm significant flexibility to capitalize on the most compelling investment opportunities. KRG has built a track record of success, having completed 29 platform acquisitions and 88 add-on acquisitions, exiting 18 of those platform companies, and generating a total internal rate of return to its investors of approximately 30%, net of fees, expenses and carried interest.
Fund IV is actively pursuing additional platforms in industries in which KRG has built a core investment franchise (i.e. healthcare, med-tech, life sciences, transportation and logistics, infrastructure and energy, construction products) and in those industries in which KRG has an emerging investment franchise (specialty finance and advertising/marketing).
Kirkland & Ellis LLP provided legal counsel to Fund IV. KRG did not use an institutional placement agent for its fundraising effort.
About KRG Capital Partners
Founded in 1996, KRG is a Denver-based private equity firm with nearly $4 billion of capital either deployed or available for future investment, which includes approximately $600 million deployed since inception on behalf of equity co-investors. 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.