Utah-based Peterson Partners has raised $510 million for a new investment vehicle centered on Draper-based Kelso Industries, according to a September 21 announcement. The move allows the firm to extend its ownership of the mechanical, electrical, and plumbing (MEP) services company instead of pursuing an outright sale.
The new entity, Peterson Kelso Coinvest LP, is a single-asset continuation vehicle. New York City-based NorthSands Capital is acting as the sole lead investor in the transaction, committing more than $450 million. Peterson Partners is rolling its existing Fund X Kelso investment into the new structure and adding additional capital.
While the transaction serves as a liquidity event for some existing investors, it also provides Kelso Industries with capital to support continued growth. Peterson Partners stated that the proceeds will support additional acquisitions, investment in people and capabilities, and expansion into new markets and business opportunities.
Kelso Industries has experienced significant growth since its launch in 2021 by Steve Carroll and Steve Nicholson. The company has grown from roughly 14 acquisitions in late 2023 to approximately 40 acquisitions today. Kelso reached more than $1 billion in annual revenue in 2025 and now employs over 4,000 people across more than 40 states.
On September 15, 2026, Dallas-based Paceline Equity Partners announced that its structured preferred equity investment in Kelso had been redeemed in full in connection with this continuation transaction. Financial terms regarding the redemption were not disclosed.
Kelso Industries provides installation, maintenance, and repair services for various sectors, including advanced manufacturing facilities, airports, data centers, healthcare facilities, and industrial operations. Despite the recent funding, several financial details remain undisclosed, including Kelso's valuation, the specific division of funds between liquidity and growth capital, and the post-transaction ownership percentages of various investors.
