KRG Capital co-founder launches new firm

We originally reported on King’s departure from KRG in July, over what the firm referred to as “philosophical differences.” We’ve since learned that the split was involuntary, with the disagreements related to firm operations rather than to investment strategy.

Now King has formed Revelstoke Capital Partners, to focus on mid-market buyouts. His partners are Dale Meyer, former head of investor relations at KRG, and Simon Bachleda, previously a managing director with Eos Partners. Expect a fairly similar investment focus, with Revelstoke looking to gain control stakes in middle-market companies. Looks to be sector agnostic.

Earlier this summer we reported that “Mark King has quietly left KRG Capital, the Denver-based private equity firm he co-founded in 1996.” We added that there were rumors of him forming another investment platform that includes former KRG investor relations pro Dale Meyer.
KRG told me at the time that King left due to “philosophical differences,” and my understanding now is that the issues were about firm management rather than investment strategy. Moreover, it was not an amicable parting.

More importantly, we were right about King’s new shop. It’s called Revelstoke Capital Partners, with King and Myers being joined by Simon Bachleda, a former managing director with Eos Partners. Control-oriented middle market buyouts. Sector agnostic.

Revelstoke last week filed a Form D with the SEC, which is related to getting the firm launched and a small amount of capital for early deals. Formal fundraising is expected to commence later this year, with a target of between $400 million and $500 million.

That’s in line with KRG’s second fund, which closed on $450 million in 2001. It later upsized to nearly $2 billion for its fourth fund in 2007, but a successor is currently on indefinite hold.

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