Turnaround specialist Kelso Place Asset Management is looking to raise £75m for a new UK fund.
The UK Special Situations Fund IV is the first time Kelso has opened its doors to third-party investors, as the previous three funds were financed by the partners themselves.
Sion Kearsey, managing partner of Kelso, said: “Over the past 12 months, we have seen a significant increase in the number of UK companies requiring additional capital or needing to restructure their business in order to survive. Over the past nine years, Kelso Place has built a strong track record in UK mid-market turnaround investing and this, combined with the opportunities presented by the current economic climate, we believe is a compelling proposition for investors.”
The new vehicle will focus on turnaround and special situations opportunities including financial restructuring, operational turnarounds, corporate orphans and purchasing businesses from distressed vendors. It will look to acquire controlling stakes in UK mid-market companies with revenues between £10mand £100m per annum, with a typical investment somewhere between £1m and £15m.
Kelso Place Special Situations Fund III raised £100m in November 2006.