Kingswood Capital Management Raises $4 Billion Across Two Oversubscribed Middle-Market Funds
Kingswood Capital Management, L.P. (together with its affiliates, “Kingswood”), a Los Angeles-based investment firm focused on the middle-market, today announced the final closing of Kingswood Capital Opportunities Fund IV, L.P. (together with its parallel fund, “Fund IV”), with total capital commitments of $3.1 billion, as well as Kingswood Capital Opportunities Small Cap Fund I, L.P. (together with its parallel fund, “Small Cap Fund I”), with total capital commitments of $900 million. These funds more than double Kingswood’s total assets under management (“AUM”) to over $7 billion.
Fund IV represents the fourth institutional fundraise in five years for Kingswood and is more than double the size of Fund III. Both Fund IV and the inaugural Small Cap Fund I were significantly oversubscribed in just five weeks. Fund IV exceeded its initial target of $2.25 billion, while Small Cap Fund I exceeded its initial target of $550 million and both closed at their hard caps. The successful fundraise reflects strong confidence in Kingswood’s differentiated investment approach and reinforces the firm’s momentum as it continues to expand its platform, including the launch of its new small cap strategy.
The capital raise also underscored the strength and loyalty of Kingswood’s investor base, with nearly all existing LPs re-upping their commitments, complemented by GP commitments of approximately 7% of each fund. At the same time, it expands Kingswood’s roster of blue-chip institutional investors while significantly increasing the geographic diversity of its limited partner base, with more than 60% of new capital coming from Europe, South America, Asia, and the Middle East.
“This is a transformative milestone for Kingswood, and we are deeply grateful for the continued trust and partnership of our investors, both our longstanding partners and those who have joined us for the first time,” said Alex Wolf, Founder and Managing Partner of Kingswood. “The demand for our funds is a continued validation of our investment strategy and operational playbook, anchored by our strong relationships, execution, and results. We’re pleased that even in a volatile market, global investors are seeking access to Kingswood’s differentiated approach.”
Kingswood enters this next chapter backed by an extensive pipeline of deal opportunities and an actively expanding team of over 40 professionals. The firm continues to establish both breadth and depth across its industry expertise, including in automotive, consumer, distribution, food & beverage, healthcare, industrials, and services. The fundraise will enable Kingswood to scale its strategy of identifying value in situations that others have overlooked and establish new partnerships with a broader range of corporate sellers, founders, management teams, and operators.
Lazard acted as exclusive placement agent for Fund IV and Small Cap Fund I, and Kirkland & Ellis LLP served as legal adviser.
About Kingswood
Kingswood Capital Management, L.P. partners with leading companies in the middle market that stand to benefit from its capital and extensive operating resources. Kingswood embraces complexity and is well-positioned to support businesses at inflection points in their development to enhance value. Based in Los Angeles, Kingswood is a cohesive, entrepreneurial team with a long history of shared success developing “win-win” partnerships with its portfolio companies and management teams. For more information, please visit the Kingswood website at www.kingswood-capital.com.
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