Fund: KRG Capital Fund V LP
Target: $500 mln
Amount raised: $148.4 mln
Placement Agent: Credit Suisse
KRG Capital said it raised $148.4 million, 30% of its target of $500 million, for its fifth buyout fund, which came as it raised additional capital from LPs last year for its 2007 predecessor fund.
During the fundraising for Fund V, Denver-based KRG has been active with two-add-on acquisitions and one platform deal in less than a year. None of the portfolio companies are part of Fund V, however, according to its website.
In January, Convergint Technologies, a KRG Fund IV company, said it paid an undisclosed sum to buy Sioux Falls, S.D.-based Dakota Security Systems as an add-on deal to increase its geographic footprint.
KRG platform company Fort Dearborn Co purchased Core Label LLC for an undisclosed sum last June.
KRG said it bought Palladium Energy last May and combined it with ICCNexergy to form Inventus Power, an engineering company that develops and manufactures power systems such as battery packs and chargers.
KRG Capital said it drew commitments from 11 LPs for KRG Capital Fund V, which lists a date of first sale of March 31, 2015, according to a Form D filing.
If the fund reaches its target, it’ll still be about a quarter the size of KRG’s $1.96 billion Fund IV, which it raised in about six months.
Last year, KRG offered LPs in Fund IV the opportunity to sell their stakes to an undisclosed buyer in a deal managed by Credit Suisse, sources told Buyouts last year. The offering was also intended to raise an undetermined amount of capital for Fund V.
KRG Fund IV generated an IRR of 7.9 percent and an investment multiple of 1.3x as of June 30, 2015, for the Sacramento Private Equity Partners portfolio of the California Public Employees Retirement System, according to data from the pension fund.
KRG’s current team includes Bruce Rogers, co-founder and managing director, along with Managing Directors Stewart Fisher, Ted Nark, Bennett Thompson and Colton King. Co-founder Charles Gwirtsman remains at the firm as managing director, although he’s not listed as a Fund V executive.
Rogers did not respond to an email seeking comment on Fund V.
Among the executive departures from the firm, co-founder Mark King now works as CEO of Revelstoke Capital Partners, which closed its first fund at $303 million last November.
Action item: KRG team page, http://bit.ly/1pFEb9Z
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