KLH Capital (“KLH”), a lower middle-market private equity firm based in Tampa, FL, is pleased to announce it has completed its first closing for its third SBIC-licensed fund, KLH Capital Fund III, L.P. (“Fund III”), with $135 million in committed capital. Consistent with the firm’s successful eleven-year investment history, Fund III will focus on U.S. based businesses in the value added distribution, specialty service and niche manufacturing industries with at least $10 million of revenue and $2 million of EBITDA.
In addition to KLH Capital’s traditional control investments, the new fund will incorporate a non-control, growth equity strategy. “We are excited to expand our capabilities in an increasingly competitive marketplace,” explained Will Dowden, Partner. “Our ability to make minority investments in growing businesses significantly increases the number of situations where we can be helpful to entrepreneurs and management teams.”
All of the investors in KLH Capital Fund II have committed to reinvest in Fund III, including a substantial portion from KLH Capital’s partners and founders. “We appreciate the support of our investors as we build upon a 30-year legacy that began when our founding partners left Wall Street to support small businesses with financial resources and business acumen,” said Dowden. “I am excited to continue our tradition in the lower middle-market where we have a deep understanding of how to create value.”
KLH Capital makes equity investments in businesses through recapitalizations, management buy-outs, family succession planning and growth capital transactions. Most of the company owners and management teams KLH partners with have never worked with an outside capital partner before. “Our mission is to help companies and entrepreneurs achieve long-term success,” explained James Darnell, Partner. “When we combine management’s expertise with our experience and network of relationships, the company flourishes.”
In conjunction with the new fund, Chris Hart and Kyle Madden have been promoted to partners with KLH Capital. “Chris and Kyle are exceptional teammates and important assets to our firm,” said Darnell. “Their promotions are a reflection of the significant contributions they have made to the success of KLH. Please join me in congratulating Chris and Kyle.”
About KLH Capital
Based in Tampa, FL, KLH Capital currently manages more than $300 million in capital across three funds with a focus on value added distribution, specialty service and niche manufacturing companies based in the U.S. with at least $10 million of revenue and $2 million of EBITDA. Since its founding in 2005, KLH has led the buyout of 21 portfolio companies and numerous add-on acquisitions for a total transaction value in excess of $260 million. Unlike most private equity firms, KLH is not investing on behalf of institutional investors. Instead, KLH’s limited partners are its founders and partners, as well as high net worth individuals.
Current portfolio companies include Atchafalaya Measurement, BluSky Restoration, BMI Merchandise, Data Display Systems, Ground Works Solutions and Mid-State Machine and Fabricating.