Peterson Partners has closed a $510 million capital raise for a single-asset continuation vehicle backing Kelso Industries, a portfolio company held across the firm’s Fund VIII and Fund X. North Sands Capital served as sole lead investor, committing more than $450 million to the transaction. As part of the deal, Peterson Partners Fund X rolled its position and made an additional investment in Kelso Industries.

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, providing mechanical, electrical and plumbing services to commercial, institutional and industrial customers. Proceeds from the raise will support Kelso’s continued growth through acquisitions, investment in people and capabilities, and expansion into new markets.

Spencer Clawson, partner at Peterson Partners, said Kelso has established itself as a leading national MEP services provider and remains in the early innings of a significant opportunity. Jefferies served as exclusive financial advisor to Peterson. Mayer Brown and Honigman served as legal counsel to Peterson and Kelso, while Kirkland & Ellis served as legal counsel to North Sands.