KRG’s fifth fund holds close toward $500m target

The Denver-based firm has raised $148.4m for KRG Capital Fund V from 11 limited partners since receiving its first commitment a year ago. Its predecessor fund, KRG Capital Fund IV, closed in 2007 above target on $1.96 billion.

KRG Capital Partners is over one-fifth of its way toward the $500 million target for its fifth flagship fund, KRG Capital Fund V, according to the firm’s 23 March filing with the US Securities and Exchange Commission.

The Denver-based firm has raised $148.4 million so far from 11 limited partners, the document said. The fund received its first commitment in March 2015, according to the filing.

Reports at the time of the fund launch said it hired Credit Suisse Securities as its placement agent for the fund. The latest filing indicates a sales commission to the agent of $1.1 million.

Fund V’s managing directors are Bruce Rogers, Stewart Fisher, Ted Nark, Bennett Thompson and Colton King, according to its website, whereas Fund IV had eight managing directors.

Fund IV was raised in 2007 with a target of $1.25 billion, and closed above target on $1.96 billion the same year, according to PEI Research & Analytics. Its investor base includes the New York State Teachers’ Retirement System, which committed $75 million, North Carolina State Treasury, which committed $150 million, the Public School and Education Employee Retirement Systems of Missouri, which committed $7.1 million, and the University of California Regents Endowment Fund, which committed $25 million, according to PEI Research.

KRG’s fourth fund posted a 6.3 percent net internal rate of return as of June 2015, according to the Pennsylvania Public School Employees' Retirement System. It had originally committed $300 million to the fund.

KRG, founded in 1996, focuses mainly on buy-and-build industry consolidations, and growth and strategic add-on acquisitions. It seeks investments in mid-market companies with earnings before interest, taxes, depreciation and amortisation of between $5 million and $30 million in the specialty distribution, marketing services, specialty manufacturing, and business services sectors.

KRG’s current portfolio includes marketing firm ANSIRA, orthopedic rehabilitation provider ATI Physical Therapy, decorative labels supplier Fort Dearborn Company, and medical device manufacturer Vention Medical, all from Fund IV, according to its website.

A spokesman was not available to comment.