US private equity firm Kinderhook Industries has held a $500m first and final close for its fourth buyout fund, hitting the vehicle’s hard cap after just 12 weeks in the market.
The firm initially hoped to raise $400m but said Kinderhook Capital Fund IV was heavily oversubscribed in the rapid fundraise.
Kinderhook targets lower mid-market deals in market niches, aiming to build the companies out using bolt-on investments.
Managing director Chris Michalik said, “We are excited to continue to invest in the lower middle market on behalf of our expanded investor base and continue our success in building dominant companies in market niches.
“Consolidation has played an important part in our success. Across our 43 portfolio companies, we have completed 71 follow-on investments. Once built, these companies have proven to be attractive targets to strategic buyers, with 24 of our 27 realizations sold to strategics.”
UBS Securities acted as a placement agent for the fundraise, which brings Kinderhook’s capital under management to more than $1.25bn.
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