Kelso & Company

Last updated
Kelso & Company
Company type Private Ownership
Industry Private Equity
Founded1971;53 years ago (1971)
Headquarters New York City, New York, United States
Key people
Phil Berney (co-CEO)
Frank Loverro (co-CEO)
Frank Nickell (chairman)
Products Private equity funds, Leveraged buyouts, Recapitalizations, Growth capital
AUM $11.2 billion
Website www.kelso.com

Kelso & Company is an American private equity firm focusing on leveraged buyouts, recapitalizations and growth capital transactions. Kelso invests in a variety of sectors, including communication, manufacturing and restaurants. Kelso is based in New York City.

Contents

Kelso also provides mezzanine capital through a joint venture with asset management firm BlackRock. Their joint venture, BlackRock Kelso Capital Corp. (Nasdaq :  BKCC), is organized as a type of publicly traded private equity company known as a Business Development Company.

History

Founded in 1971 as Kelso Bangert & Company, the firm acted as both an advisor and merchant bank, both making investments and advising on mergers and acquisitions. Kelso was founded by Louis O. Kelso, a lawyer and economist who is given credit for developing the concept for employee stock ownership plans, in 1956. Kelso, alongside a sister company Louis O. Kelso Inc., focused initially on M&A activity involving Employee Stock Ownership Plans. [1]

Kelso raised its first private equity fund and has had a dedicated private equity investment platform since 1980. Louis O. Kelso, who died in 1991, transitioned management of the firm to Joseph Schuchert to focus on writing and lecturing. [1] [2]

In June 2016, Kelso closed its latest fund at $2.6 billion. [3]

Investments

Kelso & Company has invested in energy, materials, retailing, industrial and consumer products, telecommunication services, financial services, and healthcare sectors. [4] The company typically invests in North America with a focus on the United States. It targets investing between $50 million and $600 million in firms that have a value of between $250 million and $2.5 billion. [4]

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References

  1. 1 2 "Louis O. Kelso, Who Advocated Worker-Capitalism, Is Dead at 77." New York Times, February 21, 1991.
  2. "Standard Endorses Kelso Bid." New York Times, March 18, 1988.
  3. Damyanova, Vanya. "Kelso & Co closed Fund IX above target at $2.6bn - AltAssets Private Equity News". www.altassets.net.
  4. 1 2 "Kelso & Company: Private Company Information - Businessweek". www.bloomberg.com. Retrieved 2016-06-14.