New York, NY (March 2, 2004) -- KPS Special Situations Funds, a leading middle-market private equity firm, announced today the final closing of KPS Special Situations Fund II, a $404 million fund focused on making control investments in turnarounds, restructurings, bankruptcies and other special situations. In raising its second fund, KPS more than doubled the size of its first fund and surpassed its fundraising target of $350 million.
The Principals of KPS are Michael Psaros, David Shapiro, Eugene Keilin and Raquel Palmer. In a statement on the final closing, the Principals said:
"We are pleased that we exceeded our fundraising target and broadened our investor base by adding over twenty new limited partner relationships. We are extremely grateful to our limited partners for their support of our Fund and its investment strategy.
"Fund II will allow us to continue the successful investment strategy we developed together for over a decade. We have a solid track record of executing sophisticated operational and financial turnarounds. We are focused in our approach, disciplined in our methodology and look forward to investing KPS II with confidence."
With more than $600 million in committed capital through its two funds, KPS pursues investments in companies within numerous industry sectors including manufacturing, transportation and services. The firm's target investments are companies that have strong franchises and unique competitive advantages within the markets they serve, but are experiencing operational and financial problems. KPS acquires a controlling interest in such companies and implements a restructuring plan designed to improve operating performance and increase cash flows.
KPS Special Situations Fund II has already completed three acquisitions over the past nine months including the Wire Rope Corporation of America, Inc. (www.wrca.com), the nation's leading producer of high carbon wire and wire rope products for the mining, oil and gas, construction and steel industries; Speedline Technologies, Inc. (www.speedlinetech.com), the industry leader in the development and manufacture of product solutions for the electronics assembly and semiconductor packaging industries; and AmeriCast Technologies, Inc. (www.americasttech.com), a world leader in the design, manufacture and supply of highly-engineered steel and iron sand castings, machined components and assemblies.
Founding principals Eugene Keilin, Michael Psaros and David Shapiro in February 1998 raised the firm's first funds, $160 million KPS Special Situations Fund I and $50 million KPS Supplemental Fund.