Peterson Partners has closed a $510 million capital raise for Peterson Kelso Coinvest, a single-asset continuation vehicle supporting portfolio company Kelso Industries.
NorthSands Capital served as the sole lead investor and committed more than $450 million to the transaction. Peterson Partners Fund X, the firm’s current flagship private equity fund, also rolled its existing position and made an additional investment in Kelso.
Kelso was founded in 2021 through Peterson’s partnership with Steve Carroll and Steve Nicholson. Headquartered in Draper, Utah, the company has expanded to more than 40 states and over 4,000 employees, providing mechanical, electrical and plumbing services to commercial, institutional and industrial customers.
The new capital is intended to support Kelso’s next phase of expansion through strategic acquisitions, investments in employees and capabilities, entry into new markets and additional business opportunities.
Peterson has built Kelso through a combination of acquisitions, de novo expansion and investments in operational systems and capabilities. The continuation vehicle gives Peterson and its investors additional capital to remain invested in the business while supporting further growth.
NorthSands focuses specifically on single-asset continuation vehicles and is making a substantial commitment to the transaction as the sole lead investor.
KEY QUOTES:
“Steve Carroll and Steve Nicholson have built an outstanding business focused on serving some of the most demanding customers and project types in the country,” said Spencer Clawson, Partner at Peterson Partners. “Since Kelso’s founding in 2021, the Company has established itself as a leading national MEP services provider through a combination of strategic acquisitions, de novo expansion and investments in people, systems and operational excellence. We believe the Company remains in the early innings of a significant opportunity, and we are excited to partner with NorthSands as we continue to support the team.”
Spencer Clawson, Partner at Peterson Partners
Bruce McEvoy, Managing Partner of NorthSands Capital, commented, “We are thrilled to partner with Peterson and Kelso management. We believe Kelso has established itself as one of the most compelling platforms in the MEP services sector through its experienced leadership team, strong operational execution and differentiated partnership approach to acquisitions.”
Bruce McEvoy, Managing Partner of NorthSands Capital
“Building Kelso from the ground up has been the opportunity of a lifetime, and we are grateful to Peterson Partners for their continued support,” said Steve Carroll and Steve Nicholson, co-founders of Kelso Industries. “We have a tremendous team of leaders across the country, and we believe the opportunity ahead remains substantial. We look forward to partnering with Peterson and NorthSands as we continue to build the nation’s preferred MEP solutions partner.”
Steve Carroll and Steve Nicholson, Co-Founders of Kelso Industries
