North American private equity firm Kelso & Company has closed its latest buyout fund, Kelso Investment Associates IX, a fraction above its $2.5 billion target on $2.56 billion, but half the size of its previous vehicle.
The firm hired KTB Investment & Securities, TransPacific Group (Asia), Magenta Capital Services, Larrain Vial Investment and Atlantic-Pacific Capital as its placement agents, according to a regulatory filing.
According to PEI Research & Analytics, the fund launched in January 2014 and held a first close in November 2014 on $1.3 billion. The general partner committed $500 million with plans for another $500 million for co-investment opportunities alongside the fund.
The fund’s investor base includes Michigan Department of Treasury, which committed $100 million, Employees’ Retirement System of the State of Hawaii, which committed $45 million, Teachers’ Retirement System of Louisiana, which committed $100 million, Alaska Permanent Fund, which committed $75 million and Maine Public Employees Retirement System, which committed $60 million, according to PEI data.
Its predecessor, Kelso Investment Associates VIII, is a 2007-vintage vehicle that closed on $5.13 billion. It was producing a net 8.8 percent internal rate of return as of 30 June 2014, according to documents from the Los Angeles City Employees’ Retirement System.
Kelso spokeswoman could not be reached for comment.