- NorthSands Capital served as sole lead investor, committing more than $450 million to the transaction
- Peterson Partners Fund X rolled its existing position and made an additional investment in Kelso as part of the deal
- Kelso has grown since its 2021 founding into one of the largest commercial MEP contractors in the US, with more than 4,000 employees
Peterson Partners has closed a $510 million capital raise for a single-asset continuation vehicle backing Kelso Industries, a portfolio company held across the firm’s Fund VIII and Fund X.
NorthSands Capital served as sole lead investor, committing more than $450 million to the transaction. As part of the deal, Peterson Partners Fund X, the firm’s current flagship private equity fund, rolled its position and made an additional investment in Kelso Industries.
Kelso was founded in 2021 through Peterson’s partnership with Steve Carroll and Steve Nicholson. Headquartered in Draper, Utah, the company operates across more than 40 states with more than 4,000 employees, providing mechanical, electrical and plumbing services to commercial, institutional and industrial customers. Proceeds from the raise will support Kelso’s continued growth through acquisitions, investment in people and capabilities, and expansion into new markets.
“Since Kelso’s founding in 2021, the Company has established itself as a leading national MEP services provider through a combination of strategic acquisitions, de novo expansion and investments in people, systems and operational excellence,” said Spencer Clawson, partner at Peterson Partners. “We believe the Company remains in the early innings of a significant opportunity, and we are excited to partner with NorthSands as we continue to support the team.”
Jefferies served as exclusive financial advisor to Peterson. Mayer Brown and Honigman served as legal counsel to Peterson and Kelso, while Kirkland & Ellis served as legal counsel to NorthSands.
Editor’s note: This news brief was produced with the assistance of artificial intelligence.