Keystone Capital collects $420m for sophomore fund

Keystone Capital Management has raised $420 million for its second institutional fund.

Keystone Capital Management has raised $420 million for its second institutional fund. Kirkland & Ellis LLP provided legal counsel on the fundraising. The Chicago-based private equity firm seeks to invest in niche manufacturing, industrial technology, food products, packaging, healthcare products and services, marketing, business and professional services sectors.


CHICAGO–(BUSINESS WIRE)–Keystone Capital Management, LP (“Keystone” or the “Firm”) is pleased to announce that it has held a first and final close of its debut institutional fund, Keystone Capital Fund II, LP (“Fund II”), with $420 million of capital commitments. In line with its history of investing personal capital and its commitment to alignment of interests across all stakeholders, the principals of Keystone collectively represent the largest single investor in Fund II.

Founded in 1994 by Kent Dauten and Scott Gwilliam, Keystone has historically operated as an entrepreneurial holding company, utilizing the personal capital of its partners to acquire high quality, market-leading businesses. Over the course of its history, Keystone has completed over 110 acquisitions across a wide range of sectors including engineering & technical services, tech-enabled services, commercial services & engineered products, and food & beverage manufacturing. Keystone intends to continue the strategy it has employed over the past twenty-seven years with the goal of creating long-term value by creatively building great businesses.

“The decision to raise outside capital was a natural step in our evolution and we have been truly humbled by the support we have received from our new investors,” noted Kent Dauten, Chairman of Keystone. “We are thrilled to be partnering with such a reputable group of like-minded investors who support our long-term, patient capital strategy.”

“We are incredibly excited about the future of Keystone,” added Scott Gwilliam, Managing Partner. “With Fund II, we look forward to continuing our approach of providing operational and growth-oriented support to business owners and management teams, while also serving as a thoughtful, diligent steward of third-party capital.”

Keystone has completed its first two platform investments for Fund II through its recent partnerships with Inspire11 and ClearWater Solutions. The Firm has also been active with its existing portfolio, completing ten add-on acquisitions in the fourth quarter of 2020 and recently announcing the sale of two platform investments, Peak-Ryzex and JOBS Group.

Kirkland & Ellis LLP provided legal counsel on the fundraise for Fund II.