Kingswood Capital Management has raised $4 billion across two middle-market private equity funds, more than doubling the Los Angeles-based firm’s assets under management to over $7 billion.
The firm closed Kingswood Capital Opportunities Fund IV and its parallel vehicle with $3.1 billion in commitments. It also closed its inaugural Kingswood Capital Opportunities Small Cap Fund and parallel vehicle with $900 million.
Both funds were significantly oversubscribed and reached their hard caps within five weeks. Fund IV exceeded its original $2.25 billion target, while the small-cap vehicle surpassed its initial target of $550 million.
Fund IV is more than twice the size of Kingswood’s third fund and represents the firm’s fourth institutional fundraising campaign in five years.
Nearly all of Kingswood’s existing limited partners made new commitments, and the general partner committed approximately 7% of each fund.
More than 60% of the new capital came from investors in Europe, South America, Asia and the Middle East, expanding the geographic diversity of Kingswood’s limited partner base.
Kingswood plans to deploy the funds across middle-market companies in automotive, consumer products, distribution, food and beverage, healthcare, industrials and services.
The firm said the additional capital will support investments in complex and overlooked situations involving corporate sellers, founders, management teams and operators.
Kingswood has more than 40 professionals and enters the new investment period with an extensive pipeline of potential transactions.
Lazard served as the exclusive placement agent for both funds, while Kirkland & Ellis acted as legal adviser.
KEY QUOTE:
“The demand for our funds is a continued validation of our investment strategy and operational playbook, anchored by our strong relationships, execution and results. We’re pleased that even in a volatile market, global investors are seeking access to Kingswood’s differentiated approach.”
Alex Wolf, Founder and Managing Partner of Kingswood Capital Management
