March 2024: Kester Capital, a leading UK lower mid-market private equity firm, is pleased to announce the successful final close of its latest fund, Kester Capital III (“the Fund”). The Fund, which was oversubscribed, exceeded its target of £150 million and closed at its hard cap of £200 million, more than double the size of its predecessor fund. In line with Kester Capital II, the strategy for the Fund remains focused on investing in primary buyouts in the healthcare and technology sectors.
The Fund builds on the successes of Kester Capital I and Kester Capital II, which have delivered three consecutive exits with a return over 4x and seven consecutive exits with a return over 3x. Kester Capital’s most recent exit from Jollyes, announced earlier this month, delivered a return of 4.2x.
Kester Capital attracted a number of new, blue-chip institutional investors from the US, Europe and the UK, alongside support from existing investors, underscoring the strength of Kester’s proposition.
Kester Capital has committed 10% of the Fund’s carry to the Kester Foundation, which was established in 2022, to support a range of charities and not-for-profit organisations.
Commenting on the fundraising success, Adam Maidment, Managing Partner at Kester Capital, said: “This is the next step for Kester – hitting our hard cap and attracting so many new, high-quality LPs alongside our long-standing supporters, all in a challenging market. That’s testament to the hard work our management and investment teams are putting in every day and proof of our strategy. We are very proud of the top decile returns we have been delivering for our investors.
“This fund is particularly special for us too as we launch the Kester Foundation alongside it. With 10% of carry going into the Foundation, we hope to make a meaningful impact and share our success with important and deserving charitable causes.”
Partner promotion and new hire
Kester Capital is also pleased to announce that Abhishek Majumdar has been promoted to Parter.
Abhishek joined Kester Capital in 2023, having previously spent seven years at Inflexion. Earlier this year, Sophie Corrodi, previously at Inflexion and OC&C, joined the firm as an Associate.
Cameron Crockett, Managing Partner at Kester Capital, commented: “Abhishek has made an immediate impact since joining the business and we are thrilled to promote him to Partner. He brings a wealth of experience in the technology sector and will be an invaluable member as we look to continue our success with this latest fund. We are also excited to welcome Sophie to the business as we expand our team.”