Charlotte-based private investment firm Kian Capital has closed its latest fund at an oversubscribed $400 million.
The funds will be used to strengthen its commitment to lower middle-market businesses. Kian said the company exceeded the fund's hard cap, which was not disclosed, due to increased support from its various group of investors. That includes university endowments, fund of funds, financial institutions, family offices and multiple founders of former Kian investments, according to a press release.
The closing of the fund comes after Kian announced in January its exit of an investment in Motor City Industrial, a distributor of fasteners and other consumable industrial products. Over the last 18 months, Kian has additionally exited five investments, completed 11 add-on acquisitions, added four new employees and invested in four platforms, the firm said.
"We are grateful for the continued confidence and loyalty of our blue-chip (limited partner) base, and as part of our strategy, we are pleased to welcome new and recognizable LPs to our third fund,” said Rick Cravey, co-founder and partner at Kian. "As in prior funds, we will continue to deploy flexible and creative capital solutions that align with our philosophy of creating win-win relationships and shareholder value."
This is the third fund for Kian Capital. The first fund, Kian Mezzanine Partners I, totaled $150 million and closed in 2013. Kian's second fund closed at $250 million in 2018.
"In alignment with our investment approach, Rick and I founded Kian on the premise of building a firm with enduring value and capable of making an impact for decades to come,” said Kevin McCarthy, co-founder and partner. “We have ambitious plans for the future, and while all of our achievements thus far make us proud, we are confident that the best is yet to come.”
Kian has offices in Atlanta and Charlotte, and it manages about $825 million in capital. The firm invests in enterprises offering business, health-care and consumer services, and distributors and niche manufacturing.
