Keystone Capital Closes Oversubscribed Fund III
February 2024

Keystone Capital Management, LP (“Keystone” or the “Firm”), a lower middle market alternative investment manager, is pleased to announce the one and final closing of Keystone Fund III (“Fund III” or the “Fund”) at its hard cap of $630 million in capital commitments. Fund III was oversubscribed with fundraising completed in four months, and Keystone professionals continuing to represent the largest single investor in the Fund.

Founded in 1995, Keystone will continue its strategy of investing primarily in North American businesses across five industry sectors:  Engineering and Technical Services, Tech-enabled Services, Commercial Services, Industrial Technology and Food and Beverage. Since inception, Keystone has been focused on sectors where it can execute its “buy and build” strategy as exemplified by its 170 acquisitions across 42 different industry leading platforms.

“We are humbled by the overwhelming support from our limited partners in this challenging fundraising market.   We raised this fund in just under four months and are proud to have 100% of our Fund II institutional investors return.  We were also able to broaden our investor base with the addition of several new endowments, foundations, insurance companies, and family offices.   We believe our success in the raise is a real testament to our deep and tenured team and our disciplined approach to investing,” noted Scott Gwilliam, Managing Partner of Keystone.

“For over 25 years, Keystone invested only the personal capital of its employees.   It is incredibly gratifying to see the Firm transition to outside, third-party capital and not change its time-tested strategy.  We remain committed to the lower middle market, to pursue opportunities where we can execute ‘buy and build’ consolidations, to rolling up our sleeves and helping our leadership teams drive organic and inorganic growth and operational efficiencies and to building life-long relationships and partnerships with our founders, management teams, financing sources, and now limited partners,” added Kent Dauten, Chairman of Keystone.

Kirkland & Ellis LLP provided legal counsel on the fundraise for Fund III, and the Fund was raised without a placement agent.  For more information, please see our website at or follow us on LinkedIn.

Contact Information

Alicia Galloway