Key Takeaways
- • Peterson Partners raised a $510 million single-asset continuation vehicle for Kelso Industries, with NorthSands Capital committing over $450 million as sole lead investor and Peterson Partners Fund X rolling its position with fresh capital.
- • Kelso Industries, a mechanical, electrical and plumbing (MEP) services provider founded in 2021 and headquartered in Draper, Utah, operates across more than 40 states with over 4,000 employees, positioning it as a significant player in the fragmented MEP services sector.
- • Capital deployment will fund acquisitions, workforce development initiatives, and geographic expansion into new markets, leveraging Kelso's established national footprint to pursue bolt-on acquisition strategy and operational scaling.
- • Peterson Partners, a Salt Lake City-based multi-strategy investment firm with two decades of track record across private equity, venture capital and search funds, continues to back Kelso's co-founders Steve Carroll and Steve Nicholson through the continuation structure.
- • Jefferies served as financial advisor, with Mayer Brown and Honigman providing legal counsel to Peterson and Kelso, while Kirkland & Ellis represented NorthSands Capital in the transaction.
Summary
Peterson Partners has successfully closed a $510 million continuation vehicle dedicated entirely to Kelso Industries, a rapidly scaled mechanical, electrical and plumbing services company. NorthSands Capital anchored the transaction as sole lead investor, committing over $450 million to the structure. Peterson Partners Fund X simultaneously rolled its existing position in Kelso and contributed fresh capital alongside NorthSands, demonstrating continued confidence in the platform's growth trajectory.
Kelso Industries has achieved significant scale since its 2021 founding. The Draper, Utah-based company operates across more than 40 states with over 4,000 employees, serving the residential and commercial construction supply chain. The company's growth strategy has combined three distinct approaches: strategic acquisitions of regional and local MEP service providers, greenfield expansion into adjacent geographies, and internal investment in workforce development, operational systems and technology infrastructure. These efforts have established Kelso as a consolidation-stage platform in a historically fragmented industry.
The $510 million continuation vehicle will fund Kelso's next phase of expansion through acquisitions, workforce scaling and market entry initiatives. Spencer Clawson, a Peterson Partners principal, attributed the company's national reach to disciplined execution across acquisitions, organic expansion and operational investment. Co-founders Steve Carroll and Steve Nicholson framed the partnership as a transformational opportunity to build a category-leading business at scale. Peterson Partners, which has backed more than 300 companies over two decades across private equity, venture capital and search fund verticals, continues to serve as the primary strategic sponsor.
The transaction was advised by Jefferies as financial advisor, with Mayer Brown and Honigman providing legal services to Peterson Partners and Kelso Industries, and Kirkland & Ellis representing NorthSands Capital. The continuation structure reflects institutional investor appetite for proven operators in defensive, essential-services sectors with structural consolidation dynamics and recurring revenue characteristics.
Kelso Industries has achieved significant scale since its 2021 founding. The Draper, Utah-based company operates across more than 40 states with over 4,000 employees, serving the residential and commercial construction supply chain. The company's growth strategy has combined three distinct approaches: strategic acquisitions of regional and local MEP service providers, greenfield expansion into adjacent geographies, and internal investment in workforce development, operational systems and technology infrastructure. These efforts have established Kelso as a consolidation-stage platform in a historically fragmented industry.
The $510 million continuation vehicle will fund Kelso's next phase of expansion through acquisitions, workforce scaling and market entry initiatives. Spencer Clawson, a Peterson Partners principal, attributed the company's national reach to disciplined execution across acquisitions, organic expansion and operational investment. Co-founders Steve Carroll and Steve Nicholson framed the partnership as a transformational opportunity to build a category-leading business at scale. Peterson Partners, which has backed more than 300 companies over two decades across private equity, venture capital and search fund verticals, continues to serve as the primary strategic sponsor.
The transaction was advised by Jefferies as financial advisor, with Mayer Brown and Honigman providing legal services to Peterson Partners and Kelso Industries, and Kirkland & Ellis representing NorthSands Capital. The continuation structure reflects institutional investor appetite for proven operators in defensive, essential-services sectors with structural consolidation dynamics and recurring revenue characteristics.
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