KRG closes $715m third fund

The Denver-based middle market buyout firm finished fundraising for the oversubscribed vehicle in about half a year, continuing its buy-and-build strategy for new acquisitions.

Denver-based KRG Capital Partners has announced the closing of a third buyout fund on $715 million (€588 million).

The latest vehicle exceeded the firm’s initial target of $600 million set when fundraising launched in December 2004. To date, KRG has raised nearly $1.4 billion in equity capital in the last six years.

According to a statement, almost all of KRG’s existing institutional investors returned for Fund III as well as a number of new partners, including state pension plans, universities and European investors.  The new fund will continue the firm’s buy-and-build strategy for its acquisitions in the middle market.

Probitas Partners served as KRG’s placement agent while Kirkland & Ellis provided legal counsel.

KRG plans to focus on industry niches that address certain macroeconomic and demographic trends, including the aging population, outsourced manufacturing and other services, the advancement in life sciences technologies, healthy-living consumer products and increased infrastructure spending.

Established in 1996, KRG currently manages approximately $1.5 billion in capital, and has invested in companies such as CCS Medical, a direct-to-consumer mail-order supplier of healthcare products; and Accellent, a precision contract manufacturing serving the medical device industry.

KRG was co-founded by managing directors Mark King, Bruce Rogers and Charles Gwirtsman. Christopher Lane and Charles Hamilton also serve as managing directors at the firm.