New York, NY (March 2, 2004) -- KPS Special Situations Funds, a leading middle-market private equity firm, announced today the final closing of KPS Special Situations Fund II, a $404 million fund focused on making control investments in turnarounds, restructurings, bankruptcies and other special situations. In raising its second fund, KPS more than doubled the size of its first fund and surpassed its fundraising target of $350 million.
The Principals of KPS are Michael Psaros, David Shapiro, Eugene Keilin and Raquel Palmer. In a statement on the final closing, the Principals said:
"We are pleased that we exceeded our fundraising target and broadened our investor base by adding over twenty new limited partner relationships. We are extremely grateful to our limited partners for their support of our Fund and its investment strategy.
"Fund II will allow us to continue the successful investment strategy we developed together for over a decade. We have a solid track record of executing sophisticated operational and financial turnarounds. We are focused in our approach, disciplined in our methodology and look forward to investing KPS II with confidence."
With more than $600 million in committed capital through its two funds, KPS pursues investments in companies within numerous industry sectors including manufacturing, transportation and services. The firm's target investments are companies that have strong franchises and unique competitive advantages within the markets they serve, but are experiencing operational and financial problems. KPS acquires a controlling interest in such companies and implements a restructuring plan designed to improve operating performance and increase cash flows.
KPS Special Situations Fund II has already completed three acquisitions over the past nine months including the Wire Rope Corporation of America, Inc. (www.wrca.com), the nation's leading producer of high carbon wire and wire rope products for the mining, oil and gas, construction and steel industries; Speedline Technologies, Inc. (www.speedlinetech.com), the industry leader in the development and manufacture of product solutions for the electronics assembly and semiconductor packaging industries; and AmeriCast Technologies, Inc. (www.americasttech.com), a world leader in the design, manufacture and supply of highly-engineered steel and iron sand castings, machined components and assemblies.
Founding principals Eugene Keilin, Michael Psaros and David Shapiro in February 1998 raised the firm's first funds, $160 million KPS Special Situations Fund I and $50 million KPS Supplemental Fund.
About KPS Capital Partners
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.4 billion of assets under management (as of December 31, 2023). For over three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies generate aggregate annual revenues of approximately $20.3 billion, operate 222 manufacturing facilities in 26 countries, and have approximately 48,000 employees, directly and through joint ventures worldwide (as of December 31, 2023). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
