Cyprium Partners Announces Initial Closing Of KPP Investors III At $435 Million

Private equity fund to focus on mezzanine and equity investments

Cleveland, OH – Key Principal Partners (KPP), a Cleveland-based private equity firm, today announced the first close of KPP Investors III. The $435 million raised will be used to make value-oriented, non-controlling mezzanine and control equity investments in lower middle market companies. A second closing is anticipated in the third quarter, with the Principals capping the fund at $500 million.

Unlike most other private equity firms, the principals of KPP focus primarily on “sponsorless” investing. According to the firm, non-control transactions offer superior risk-adjusted rates of return, utilizing less leverage than the transactions generated by buyout firms. Further, sponsorless transactions provide an attractive opportunity to invest in exceptional companies that are simply not for sale. The firm has also found a number of superior control investment opportunities in which both the seller and the management team were attracted to KPP’s heritage as an investment partner.

“Our success thus far has been achieved by establishing meaningful partnerships with business owners and management teams,” said John Sinnenberg, CEO of KPP. “We take time to fully understand the business of each of our portfolio companies, and work with management to help ensure the company’s strategic objectives are achieved, regardless of the level of ownership interest and type of security held by KPP.”

KPP’s two predecessor funds – Regis Capital Partners, L.P. and KPP Investors II L.P. – have performed well. Together with capital contributed by KeyCorp, the firm has invested in 36 companies deploying capital of nearly $470 and achieving superior risk-adjusted returns.

KPP Investors III will be managed by KPP’s three senior executives, John Sinnenberg, Timothy Fay and Leland Lewis, who together bring an exceptional track record to the fund and more than 65 years of experience. They are backed by 15 investment professionals with diverse backgrounds in M&A, finance, accounting, lending, operations management and information technology.

About Key Principal Partners

Key Principal Partners (KPP) is a nationally recognized private investment firm providing capital to middle market companies throughout North America. KPP utilizes mezzanine and equity capital to fund the growth, buyout, refinancing or acquisition of profitable companies. In addition, KPP provides liquidity to shareholders of privately held stock. Distinctively, KPP’s flexible approach to structuring investments does not require control of companies. KPP has approximately $1 billion in capital under management and can invest $5 million to $25 million in companies with at least $20 million in revenue. Headquartered in Cleveland, KPP is affiliated with KeyCorp, a $90 billion financial services firm and has offices in Boston, Greenwich and San Francisco. Visit us at www.keyprincipalpartners.com.

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