Kingswood Capital Management, a Brentwood-based private equity firm, has closed a $1.5 billion fund.
It’s the third fund the firm has raised in three years and includes a 5% commitment from general partners with several existing investors participating in the third round, the company said. The deal closed in three months and increased the firm’s total assets under management to $3.2 billion.
“We will continue our differentiated investment strategy of seeking out opportunities for asymmetric upside that other firms often overlook, while preserving downside protection and leveraging our network to attract and apply deep operational expertise,” Alex Wolf, managing partner at Kingswood Capital Management, said in a statement.
Kingswood Capital Management focuses on middle-market companies in industries like professional services, health care, retail and distribution. Some of the companies in its portfolio include World Market, a specialty retailer of furniture and food; and fragrance retailer Obsession Holdings (which does business as Fragrance Outlet).
Private equity deals have been slow in recent years. According to Pitchbook, private equity deals involving L.A.-based participants peaked in 2022 with 790 deals. In October, the number of deals dropped to 454.
Kingswood acquired two companies in 2024: lighting company Progress Lighting, and emulsifier provider PATCO Products, which makes products for food and pharmaceutical companies.
The company’s investment criteria include family businesses. In 2022, Kingswood Capital Management acquired Irwindale-based Turbo Wholesale Tires, a family-run business. Kingswood’s investment portfolio also includes G Fuel, a New York-based energy drink company that reportedly received an 8-figure investment from the likes of Kingswood Capital Management and Century City-based investment firm First Beverage Group.
While funding for L.A. private equity firms is on the up and up – Westwood-based Truelink Capital raised an oversubscribed inaugural fund of $875 million earlier in July – Pitchbook predicts private equity firms focused on technology will outperform diversified private equity funds.
“Tech-focused funds have been faltering amid market corrections, surging interest rates, heightened recession risks, and uncertainty in IT expenditure. Yet, the interplay of market dynamics suggests a silver lining,” the 2024 U.S. Private Equity Outlook Pitchbook report said. “The core business strengths of the tech and software sectors remain robust.”
