Peterson Partners Secures $510 Million for Kelso Industries to Drive Growth and Value

Peterson Partners Secures $510 Million for Kelso Industries to Drive Growth

In an exciting development for the private equity landscape, Peterson Partners, a prominent investment firm based in Salt Lake City, has successfully raised $510 million through its newly created continuation vehicle, Peterson Kelso Coinvest, LP. This fund is specifically tailored to bolster Kelso Industries, a portfolio company in which Peterson has been actively involved since its inception in 2021. The news was officially announced on September 9, 2026, signaling a substantial commitment to Kelso's expansion and operational excellence.

A Solid Investment

Leading the charge in this significant funding round is NorthSands Capital, a New York-based investment firm that has emerged as a vital partner with a commitment exceeding $450 million. This collaboration underscores a shared vision between Peterson and NorthSands, both of which are keen to enhance Kelso’s position in the mechanical, electrical and plumbing (MEP) services space.

Kelso Industries, based in Draper, Utah, has rapidly established itself as a frontrunner in delivering high-quality MEP services across more than 40 states, employing over 4,000 personnel. This immense growth trajectory is a testament to the strategic direction set by co-founders Steve Carroll and Steve Nicholson, who emphasized their commitment to serving a diverse range of industries, from high-tech data centers to healthcare facilities and airports.

A Commitment to Growth

The recent capital infusion is earmarked for several key initiatives aimed at consolidating Kelso’s market leadership. Specific areas of focus will include strategic acquisitions to enhance service offerings, investments in workforce development, and expansions into untapped markets. Spencer Clawson, a Partner at Peterson Partners, expressed confidence in Kelso's growth potential, remarking, “The Company remains in the early innings of a significant opportunity.” This perspective highlights the optimism surrounding Kelso’s future and the demand for MEP services in an evolving marketplace.

The leadership at NorthSands Capital echoes this sentiment. Bruce McEvoy, the firm's Managing Partner, noted the unique operational approach that sets Kelso apart in the MEP sector, attributing its success to a combination of experienced leaders, robust execution capabilities, and a tailored partnership model, which allows local business units to retain their unique cultures while benefiting from national scale and resources.

Strategic Partnerships for Success

The partnership between Peterson Partners, NorthSands Capital, and Kelso signifies a strong alignment of goals and values. Both investment firms have demonstrated a strong track record in fostering entrepreneurial innovation, thus equipping Kelso with the right tools for sustainable growth.

“As we continue to build the nation’s preferred MEP solutions partner, strong partnerships are crucial for sustained success,” Carroll and Nicholson commented, underlining the collaborative spirit that drives Kelso’s evolution. They also acknowledged the pivotal role that Peterson Partners has played in supporting the company's journey from a start-up to an industry leader.

A Look Ahead

With the heightened investment and a clear strategic direction, Kelso Industries is poised to amplify its footprint in the national MEP market. As this new chapter unfolds, the focus will be on scalability and sustainability in service delivery, ensuring that they meet the demands of their diverse clientele across critical sectors.

Furthermore, Peterson Partners and NorthSands Capital's involvement is expected to enhance Kelso's operational capabilities. By nurturing a culture of excellence and innovation, Kelso aims to become a cornerstone of trust and reliability in the MEP services industry.

Conclusion

As the market evolves, the financial backing and strategic guidance from Peterson Partners and NorthSands Capital will be instrumental in propelling Kelso Industries toward its ambitious growth targets. The collaborative efforts of these firms mark a promising future for Kelso and its ability to deliver unparalleled MEP solutions while ensuring customer satisfaction across all service lines. With the continued support of experienced partners, Kelso is indeed forging a path to lasting success in the world of MEP services.