KPS Capital Partners
Encyclopedia
KPS Capital Partners is a private equity
firm focused on control investments in middle-market companies through special situations transactions such as turnarounds, restructurings, bankruptcies, and corporate divestitures (distressed-to-control transactions). KPS will pursue opportunities involving companies operating in bankruptcy, in default of obligations to creditors, or with a history of recurring operating losses. KPS has created stand-alone independent companies from assets divested by large corporate parents and made equity infusions to recapitalize highly leveraged companies.
The firm, which is based in New York City
, was founded in 1997. The firm has raised approximately $2.6 billion since inception across three funds. KPS recently completed fundraising for its third fund with $2.0 billion of capital commitments. KPS's institutional investor
s include public and private pension fund
s, large financial institutions, endowments and foundations, among others.
. KPS raised $200 million of capital for its first fund in 1997, at the time one of the largest funds for a first time private equity manager. The firm raised a second fund with $404 million in 2003. The firm's third fund has been significantly oversubscribed and will be closed at $2.0 billion.
Psaros and Keilin first came across each other when Keilin was involved in the 1980 leveraged buyout
of Weirton Steel. Psaros spent his teenage years in Weirton, West Virginia
, where his father worked in a mill. Psaros has said that he was aware of the joint employee- ownership buy-out which saved the company and 10,000 jobs.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm focused on control investments in middle-market companies through special situations transactions such as turnarounds, restructurings, bankruptcies, and corporate divestitures (distressed-to-control transactions). KPS will pursue opportunities involving companies operating in bankruptcy, in default of obligations to creditors, or with a history of recurring operating losses. KPS has created stand-alone independent companies from assets divested by large corporate parents and made equity infusions to recapitalize highly leveraged companies.
The firm, which is based in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, was founded in 1997. The firm has raised approximately $2.6 billion since inception across three funds. KPS recently completed fundraising for its third fund with $2.0 billion of capital commitments. KPS's institutional investor
Institutional investor
Institutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets...
s include public and private pension fund
Pension fund
A pension fund is any plan, fund, or scheme which provides retirement income.Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold...
s, large financial institutions, endowments and foundations, among others.
History
KPS Capital Partners was founded in 1997 by Eugene Keilin, Michael Psaros and David Shapiro. Keilin, who was the senior partner of the firm, retains a senior advisor role but is no longer involved in the day-to-day operations of the firm. Keilin was previously a long time investment banker at LazardLazard
Lazard Ltd is the parent company of Lazard Group LLC, a global, independent investment bank with approximately 2,300 employees in 42 cities across 27 countries throughout Europe, North America, Asia, Australia, Central and South America...
. KPS raised $200 million of capital for its first fund in 1997, at the time one of the largest funds for a first time private equity manager. The firm raised a second fund with $404 million in 2003. The firm's third fund has been significantly oversubscribed and will be closed at $2.0 billion.
Psaros and Keilin first came across each other when Keilin was involved in the 1980 leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
of Weirton Steel. Psaros spent his teenage years in Weirton, West Virginia
Weirton, West Virginia
Weirton is a city located in the Northern Panhandle of West Virginia, United States. Most of the city is in Hancock County, with the remainder in Brooke County. As of the 2000 census, the city population was 20,411...
, where his father worked in a mill. Psaros has said that he was aware of the joint employee- ownership buy-out which saved the company and 10,000 jobs.
External links
- KPS Capital Partners (company website)