Key Takeaways
- • Peterson Partners LLC, a Salt Lake City-based private equity firm, raised $510 million for a single-asset continuation fund focused on maintaining its investment position in Kelso Industries.
- • Kelso Industries, headquartered in Draper, Utah, operates as a mechanical, electrical, and plumbing (MEP) contractor serving commercial, institutional, and industrial customers across more than 40 states.
- • The continuation vehicle structure allows Peterson Partners to extend its holding period in the portfolio company beyond the typical fund lifecycle, a strategy increasingly common in mid-market private equity.
Summary
Peterson Partners LLC announced on September 9, 2026, the successful raising of $510 million for a continuation fund focused on a single asset: Kelso Industries. The Salt Lake City-based private equity firm is leveraging this capital raise to maintain and potentially expand its position in the mechanical contractor, rather than pursuing a near-term exit or recapitalization event.
Kelso Industries, based in Draper, Utah, provides comprehensive mechanical, electrical, and plumbing services to commercial, institutional, and industrial end markets across more than 40 states. The company's diversified service offerings and broad geographic footprint across North America position it within the essential infrastructure services segment, which has demonstrated resilience across economic cycles.
The use of a continuation fund vehicle reflects a broader trend among mid-market private equity sponsors seeking to optimize holding periods and manage portfolio company trajectories independent of traditional fund maturation timelines. By raising dedicated capital specifically for this single asset, Peterson Partners can pursue operational improvements, strategic add-on acquisitions, or market expansion initiatives without pressure to realize the investment on an accelerated schedule.
The structure of continuation funds has become increasingly prevalent as an alternative to secondary sales or dividend recapitalizations, particularly for portfolio companies with strong operational performance and growth potential. This approach preserves sponsor control while providing existing investors liquidity options and new investors the opportunity to participate in the next phase of value creation.
Kelso Industries, based in Draper, Utah, provides comprehensive mechanical, electrical, and plumbing services to commercial, institutional, and industrial end markets across more than 40 states. The company's diversified service offerings and broad geographic footprint across North America position it within the essential infrastructure services segment, which has demonstrated resilience across economic cycles.
The use of a continuation fund vehicle reflects a broader trend among mid-market private equity sponsors seeking to optimize holding periods and manage portfolio company trajectories independent of traditional fund maturation timelines. By raising dedicated capital specifically for this single asset, Peterson Partners can pursue operational improvements, strategic add-on acquisitions, or market expansion initiatives without pressure to realize the investment on an accelerated schedule.
The structure of continuation funds has become increasingly prevalent as an alternative to secondary sales or dividend recapitalizations, particularly for portfolio companies with strong operational performance and growth potential. This approach preserves sponsor control while providing existing investors liquidity options and new investors the opportunity to participate in the next phase of value creation.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.