Mount Kellett Capital Management has committed and invested roughly half of its second fund, which closed on its $4 billion target and hard-cap on 31 March.
“We’re fortunate to have had a pretty strong pipeline through all of last year and continuing now,” chief operating officer Jonathan Fiorello told Private Equity International.
Last November, Mount Kellett and an investor group invested a combined $490 million of debt and equity into bankrupt US grocer A&P. The firm initially bought into the debt of the company before converting it into a “sizeable equity stake”, according to Mount Kellett managing director Sebastian Varga von Kibed.
The firm, which makes distressed, stressed, special situations and opportunistic investments in a variety of industries and geographies, came to market with Fund II in late 2010.
Mount Kellett engaged a number of placement agents to help raise Fund II, including Goldman Sachs.
“We did have a placement agent strategy where we used them in targeted fashions focused on specific regions,” Fiorello said.
Since its founding in 2008, Mount Kellett has invested roughly evenly in distressed deals, special situations and buyouts. The firm’s strategy has been popular with limited partners, a large percentage of which re-upped into Fund II, according to Fiorello.
Mount Kellett’s debut fund, which also invested in both debt and buyouts, collected approximately $3 billion in 2009.
Founded in 2008 by Mark McGoldrick, former head of the special situations group for Goldman Sachs, Mount Kellett manages approximately $7 billion. The firm is based in New York and has offices in London, Hong Kong and Mumbai.