Kelso & Company
Encyclopedia
Kelso & Company is a private equity
investment firm focusing on leveraged buyout
s, recapitalizations
and growth capital
transactions. Kelso invests in a variety of sectors, including communication, manufacturing and restaurants.
Kelso is based in New York City
and was founded in 1971. Since 1980, the firm has raised approximately $10.1 billion of investor commitments to its private equity fund
s and was among the 50 largest private equity firms globally. Since its inception, the firm has made investments in over 90 companies representing more than $31 billion of aggregate purchase price.
Kelso also provides mezzanine capital
through a joint venture with BlackRock
, an asset management firm. Their joint venture, Blackrock Kelso Capital Corp. , is organized as a type of publicly traded private equity
company known as a Business Development Company
.
, both making investments and advising in mergers and acquisitions
. Kelso was founded Louis O. Kelso
, a lawyer and economist who is given credit for developing the concept for Employee Stock Ownership Plans, also known as ESOPs, in 1956. Kelso, alongside a sister company Louis O. Kelso Inc., focused initially on M&A activity involving Employee Stock Ownership Plans.
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. Today the firm is headed by Frank T. Nickell who joined the firm in 1977.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investment firm focusing on leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
s, recapitalizations
Leveraged recapitalization
In corporate finance, a leveraged recapitalization is a change of the capital structure of a company, a substitution of equity for debt —e.g. by issuing bonds to raise money, and using that money to buy the company's stock or to pay dividends...
and growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
transactions. Kelso invests in a variety of sectors, including communication, manufacturing and restaurants.
Kelso is based in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
and was founded in 1971. Since 1980, the firm has raised approximately $10.1 billion of investor commitments to its private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
s and was among the 50 largest private equity firms globally. Since its inception, the firm has made investments in over 90 companies representing more than $31 billion of aggregate purchase price.
Kelso also provides mezzanine capital
Mezzanine capital
Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares...
through a joint venture with BlackRock
BlackRock
BlackRock, Inc. is an American multinational investment management corporation and the world's largest asset manager. BlackRock is headquartered in Manhattan, New York City, New York, United States and is the leading provider of investment, advisory, and risk management solutions...
, an asset management firm. Their joint venture, Blackrock Kelso Capital Corp. , is organized as a type of publicly traded private equity
Publicly traded private equity
Publicly traded private equity refers to an investment firm or investment vehicle, which makes investments conforming to one of the various private equity strategies, and is listed on a public stock exchange.There are fundamentally two separate opportunities that private equity firms...
company known as a Business Development Company
Business Development Company
A Business Development Company is a form of publicly traded private equity in the United States created by Congress in 1980 as amendments to the Investment Company Act of 1940...
.
History
Originally founded in 1971 as Kelso Bangert & Company, the firm acted as both an advisor and merchant bankMerchant bank
A merchant bank is a financial institution which provides capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms they lend to....
, both making investments and advising in mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
. Kelso was founded Louis O. Kelso
Louis O. Kelso
Louis Orth Kelso was a political economist in the classical tradition of Smith, Marx and Keynes. He was also a corporate and financial lawyer, author, lecturer and merchant banker who is chiefly remembered today as the inventor and pioneer of the Employee Stock Ownership Plan , the prototype of...
, a lawyer and economist who is given credit for developing the concept for Employee Stock Ownership Plans, also known as ESOPs, in 1956. Kelso, alongside a sister company Louis O. Kelso Inc., focused initially on M&A activity involving Employee Stock Ownership Plans.
Kelso raised its first private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
and has had a dedicated private equity investment platform since 1980. Louis O. Kelso
Louis O. Kelso
Louis Orth Kelso was a political economist in the classical tradition of Smith, Marx and Keynes. He was also a corporate and financial lawyer, author, lecturer and merchant banker who is chiefly remembered today as the inventor and pioneer of the Employee Stock Ownership Plan , the prototype of...
who died in 1991 transitioned management of the firm to Joseph Schuchert to focus on writing and lecturing. Today the firm is headed by Frank T. Nickell who joined the firm in 1977.
External links
- Kelso & Company (company website)
- Blackrock-Kelso Capital Corp. (company website)