Kohlberg reaches $945m on second close

The firm is well on the way to its $1.5bn hard-cap, having raised more than $400m since holding a first close in September.

Kohlberg & Company held a second close on its seventh investors fund, having raised $945 million toward its $1.5 billion hard-cap, according to a market source. The fund has a $1.5 billion hard-cap.

Kohlberg held a first close in September on $520 million. 

The firm has structured Kohlberg Investors VII through four vehicles, all of which filed with the US Securities and Exchange Commission Tuesday. The filings indicate that the fund had raised at least $905.7 million through the affiliated vehicles; Kohlberg Investors VII, Kohlberg Investors VII-B, Kohlberg TE Investors VII and Kohlberg TE Investors VII-B. A $40 million commitment from the general partner was included in the second close. 

Lazard is listed as an associated broker or dealer on all four vehicles. TransPacific Group is also listed as an associated broker or dealer, but only on Kohlberg TE Investors VII.

The firm did not respond to a request for comment. 

Kohlberg Investors VII will target mid-market companies with enterprise values between $100 million and $750 million, providing equity capital investments of $50 million to $200 million. Fund VII’s strategy is similar to that of its predecessor, which raised $1.5 billion in 2007 and was generating a 16.65 percent net internal rate of return as of 30 September, according to Public Employee Retirement System of Idaho documents. 

Idaho re-upped with Kohlberg last year. Fund VII has also received commitments from the Teachers’ Retirement System of Louisiana, the State of Wisconsin Investment Board and the School Employees Retirement System of Ohio

The firm was founded in 1987 by Jerome Kohlberg, who also co-founded Kohlberg Kravis Roberts. Kohlberg has raised more than $3.7 billion in commitments through its first six funds and has completed around $8 billion in transactions, according to its website.