Ex-KKR affiliate KSL targets $1.5bn for Fund III

Denver-based leisure investment firm KSL Capital has hit the fundraising trail.

KSL Capital Partners has launched its third investment fund targeting $1.5 billion in capital commitments from investors, sister news site PERE has learned.

KSL, a former affiliate of private equity giant Kohlberg Kravis Roberts, is understood to be aiming for a final closing for the vehicle in 2011.

Led by managing directors Michael Shannon and Eric Resnick, the firm raised $1 billion for its previous investment vehicle, KSL Capital Partners II fund in September 2006, with commitments from limited partners including Canada’s Ontario Municipal Employees Retirement System, CPP Investment Board and the Oregon Public Employees’ Retirement fund.

KSL has completed investments totaling more than $2.8 billion in leisure assets and operating businesses it deems to be under managed or under-resourced since it was founded in 2005.

It typically invests in assets where it can assume a controlling position. Its minimum equity outlays are $25 million but, according to its marketing literature, the firm has the ability to commit up to $500 million in a single deal.

Standout investments include ClubCorp, the Dallas-based owner and operator of 170 golf courses, private country clubs, sports clubs and resorts and Western Athletic Clubs, the luxury fitness club chain with facilities in California.