Lower middle-market-focused private investment firm Kian Capital Partners and alternatives investor Apogem Capital have held the closing of a single-asset continuation fund to reinvest in SPATCO Energy Solutions, expanding the former’s AUM to just over $1bn.
The transaction provides liquidity to existing investors while providing new continuation fund investors with the opportunity to invest.
SPATCO is a fuelling infrastructure services provider in the US southeast, mid-Atlantic and southwest. SPATCO was founded in 1935 and serves full-service convenience stores, fuelling centres, electric vehicle charging locations, local and state municipalities and commercial fleet operators.
Kian originally invested in SPATCO in 2015 with the firm’s inaugural fund, Kian Mezzanine Partners I, providing subordinated debt and minority equity to support smaller add-on acquisitions. In September 2020, Kian acquired a controlling interest in SPATCO via an investment from Kian Mezzanine Partners II.
Campbell Lutyens advised Kian and SPATCO, while DLA Piper and Robinson Bradshaw advised Kian. Bass Berry Simms advised Apogem Capital.
In conjunction with the closing of the continuation fund, SPATCO completed a refinancing of its debt facilities, raising over $200m of new debt capital to support the company’s growth. Barings and NXT Capital provided new senior financing, while New Canaan Funding and Wells Fargo Strategic Capital provided mezzanine financing.
