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Venture capital firm KV Capital has announced the launch of KV Building Products Access Fund LP. The closed-end fund enables eligible and accredited Canadian investors to invest alongside KV and its institutional partners in the firm’s building products strategy. It will target annual returns of 14 to 18 percent from the strategy’s private equity portfolio.
“The Access Fund is the newest part of our Building Products Strategy, which targets growth from the housing construction industry, rather than capital appreciation from direct investment in real estate,” said KV Capital CEO and co-founder Aleem Virani. “Western Canada needs more housing, and our companies supply the construction components essential to that need. These businesses have strong growth prospects, and our KV platform is uniquely positioned to realize that potential.”
Alongside the firm’s debt financing and equity partnership opportunities, KV’s venture into hard goods for construction provides developers and builders with all forms of capital essential for the success of their projects and accelerates bringing more housing to the market. The fund applies KV’s unique platform and knowledge of the real estate industry in western Canada, where the Canadian Mortgage Housing Corporation expects 43 percent growth in new housing by 2030. The fund targets companies supplying building materials and products with $50 million or more in revenue. KV anticipates making six to eight investments in total, each similar to its recent partnership with Nelson Lumber.
The KV private equity team combines decades of proven skill and experience. Notable members include Paul Verhesen, who was CEO of Clark Builders for more than 20 years before joining KV as a strategic advisor; Erick Hamdan, one of Western Canada’s leading private equity professionals; and Jon Herman, president of KV’s Private Equity division and a senior partner at KV Capital who led the successful execution of KV’s inaugural private equity fund.
Eligible and accredited investors can subscribe to the KV Building Products Access Fund LP through their investment advisors. Minimum investments are $150,000 for Class A interests and $25,000 for Class B interests.