SALT LAKE CITY, Sept. 9, 2026 /PRNewswire/ -- Peterson Partners, LLC ("Peterson"), a Salt Lake City-based private equity firm investing in lower middle-market businesses, announced today that it has closed a capital raise of $510 million for Peterson Kelso Coinvest, LP (the "Fund"), a single-asset continuation vehicle for Kelso Industries ("Kelso" or the "Company"), a Fund VIII and Fund X portfolio company. NorthSands Capital ("NorthSands"), a New York City-based investment firm focused on investing in single-asset continuation vehicles, was the sole lead investor and committed more than $450 million to the transaction. As part of the transaction, Peterson Partners Fund X, Peterson's current flagship private equity fund, rolled its position and made an additional investment in Kelso.
Kelso was founded in 2021 through Peterson's partnership with Steve Carroll and Steve Nicholson. Headquartered in Draper, Utah, the Company operates across more than 40 states with more than 4,000 employees nationwide and is committed to delivering best-in-class mechanical, electrical and plumbing ("MEP") services to commercial, institutional and industrial customers.
The proceeds of this capital raise will support Kelso's continued growth through strategic acquisitions, investment in people and capabilities, and expansion into new markets and business opportunities.
"Steve Carroll and Steve Nicholson have built an outstanding business focused on serving some of the most demanding customers and project types in the country," said Spencer Clawson, Partner at Peterson Partners. "Since Kelso's founding in 2021, the Company has established itself as a leading national MEP services provider through a combination of strategic acquisitions, de novo expansion and investments in people, systems and operational excellence. We believe the Company remains in the early innings of a significant opportunity, and we are excited to partner with NorthSands as we continue to support the team."
Bruce McEvoy, Managing Partner of NorthSands Capital, commented, "We are thrilled to partner with Peterson and Kelso management. We believe Kelso has established itself as one of the most compelling platforms in the MEP services sector through its experienced leadership team, strong operational execution and differentiated partnership approach to acquisitions."
"Building Kelso from the ground up has been the opportunity of a lifetime, and we are grateful to Peterson Partners for their continued support," said Steve Carroll and Steve Nicholson, co-founders of Kelso Industries. "We have a tremendous team of leaders across the country, and we believe the opportunity ahead remains substantial. We look forward to partnering with Peterson and NorthSands as we continue to build the nation's preferred MEP solutions partner."
Jefferies LLC served as exclusive financial advisor to Peterson. Mayer Brown and Honigman LLP served as legal counsel to Peterson and Kelso. Kirkland & Ellis LLP served as legal counsel to NorthSands.
About Kelso
Kelso Industries is a leading national MEP services provider headquartered in Draper, Utah. Founded in 2021 through a partnership with Peterson Partners, Kelso has grown through strategic acquisitions and de novo expansion into one of the largest commercial MEP contractors in the United States. With more than 4,000 employees operating across more than 40 states, Kelso serves customers throughout the full building lifecycle, including new installation, maintenance and service. The Company serves a diverse set of end markets, including data centers, healthcare, airports, industrial facilities, advanced manufacturing and other mission-critical commercial environments.
Kelso's partnership-oriented operating model enables entrepreneurial business leaders to preserve their local culture, customer relationships and operating autonomy while benefiting from the resources, capabilities and scale of a national organization.
More information is available at www.kelso-industries.com.
About Peterson Partners
At Peterson, our mission is to help great people build great businesses. We roll up our sleeves in supporting exceptional entrepreneurs and management teams in building enduring enterprises and have invested across industries in more than 300 companies, including NMA, Packsize, solidcore, Ennoble, Govineer, Energy Solutions and Breeze Airways. We generally provide the first institutional equity capital in a business, and we participate for a meaningful chapter of growth, usually 5-10 years, during which we work hard as a trusted coach and advisor in driving growth and building brands, systems and human capital. Peterson Partners is an independent investment firm with approximately $3.0 billion under management across Private Equity and Search strategies. To learn more about Peterson Partners, please visit www.petersonpartners.com.
About NorthSands Capital
NorthSands Capital is an independent firm based in New York focused on investing in single-asset continuation vehicles. NorthSands was founded in 2023 by Bruce McEvoy, a former Senior Managing Director in Blackstone's private equity business. NorthSands seeks to leverage its primary private equity investing approach to invest in single-asset continuation vehicles for middle market companies. More information is available at www.northsands.com.
Press Contact:
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The portfolio companies identified and described herein do not represent all the portfolio companies purchased, sold or recommended for funds advised by Peterson. The reader should not assume that an investment in the portfolio companies identified was or will be profitable. Past performance is not indicative of future results. AUM indicated is as of September 4, 2026. Portfolio company executives, including some who are investors in Peterson funds, who provided their opinion above have not received any compensation nor a fee reduction related to their investment in a Peterson fund as incentive for this feedback. This press release is not a solicitation of an offer to purchase securities and may not be relied upon in connection with the purchase or sale of any security. Interests in funds managed by Peterson, if offered, will only be made pursuant to a confidential offering memorandum and subscription documents.
SOURCE Peterson Partners; NorthSands Capital
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