Kelso Closes $3.25B Mid-Market Buyout Fund

Kelso & Company LP, a private equity firm focused on middle-market investing, has closed Kelso Investment Associates XI and affiliated funds with aggregate capital commitments of $3.25 billion, surpassing its original target.

Kelso partners and employees committed more than $400 million to the raise, representing a GP commitment of over 12%. The firm said it had a 95% re-up rate from investors in its prior fund for the latest fund.

The firm began fundraising for the new vehicle in 2021 and reached a first close in September 2021, according to a report from the Wall Street Journal in March 2022 .

According to the report, Kelso had raised nearly $2 billion for the vehicle at the time and was planning a final close in the second half of 2022.

Led by co-CEOs Chris Collins and Frank Loverro, New York-based Kelso has raised a total of 11 private equity funds and invested approximately $19 billion of equity capital in more than 140 companies since inception in 1980

Debevoise & Plimpton served as legal counsel in connection with the fundraise and formation of Fund XI.