Canadian middle market fund targets C$250m(3)

Canadian buyout firm Kilmer Capital is targeting C$250 million for its latest fund, to which Kensington Capital Partners’ publicly traded fund of funds has committed an undisclosed amount.

Kilmer Capital Fund II is targeting C$250 million ($236 million, €175 million), according to Kilmer Capital managing partner Anthony Sigel. The fund will target buyouts of owner-operated businesses in the Canadian middle market, Sigel said.

Canadian fund of funds manager Kensington Capital Partners has committed part of its C$22.7 million publicly traded Global Private Equity Fund to Canadian the fund. Toronto-based Kensington did not disclose the size of its investment.

Kensington was an LP in Kilmer’s first fund, which closed on C$115 million in 2001 and employed the same investment strategy. The fund has made six investments, including hosiery and loungewear maker McGregor Industries and wholesale bakery Give & Go Prepared Foods.

“We’ve been very pleased with their investments, and their returns have been good, so we decided to re-up this time around,” said Rick Nathan, Kensington managing director and president of the Canadian Venture Capital Association. Kensington has also co-invested with Kilmer in several deals.

Kensington manages commitments of over C$350 million. Since the firm was founded in 1996 it offered traditional fund of funds and co-investment funds. Its Global Private Equity Fund, which listed on the Toronto Stock Exchange in April, was Kensington’s first vehicle open to public market investors.

Last month, Kensington Global Private Equity Fund also finalised commitments to Canadian funds TriWest Capital Partners III, Novacap Industries III, Novacap Technology, as well as a secondary position in Novacap II. The fund’s non-Canadian investments are Nordea Private Equity II, HabourVest International Private Equity Partners V and the buyout and venture funds of HarbourVest Partners VIII.