Banking & Finance, Health Care, and Manufacturing

Private equity fund invests in medical company

October 2, 2019
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Keystone Solutions Group web screenshot partial
Photo via keystone-pd.com

The capital management arm of a local investment banking firm has made its first portfolio company investment from a mezzanine fund it set up earlier this year.

Grand Rapids-based Charter Capital Partners said today it has invested in Kalamazoo-based Keystone Solutions Group from its targeted $100 million Charter Growth Capital Fund.

The fund was launched earlier this year and closed its first $21 million in commitments in August.

Charter’s investment into Keystone meets the fund’s stated objective of investing $1 million to $5 million of mezzanine debt and/or equity capital into lower middle market companies in the Great Lakes region.

The undisclosed funding amount from Charter “recapitalized” Keystone and provided support for “key marketing initiatives and operational improvements.”

Keystone’s current management team will continue to operate the business.

The Charter team will “spearhead enhancements in processes and governance.”

John Kerschen, president and managing partner, Charter, will take a seat on Keystone’s board of directors.

“This capital investment enables us to continue our commitment to innovation and grow our presence in new markets and geographies that are hotbeds of growth in the medical device field,” said Jim Medsker, president, Keystone.

“Charter has a long record of investing in growing businesses in both Michigan and medical technology. We look forward to working with the Charter team.”

Kerschen said Charter is “thrilled to provide Keystone with the additional capital, tools and support to accelerate its growth.”

Charter Capital Partners

Founded in 1989, Charter Capital Partners offers investment banking and private capital investing advisory services, including buy- and sell-side mergers and acquisitions, succession planning, business valuation and capital raise.

Charter Private Capital Management, launched more than a decade ago, is the registered investment adviser arm of the firm, managing numerous venture capital funds and private investment vehicles, including the Michigan Accelerator Fund I, MAF Opportunity Fund, Charter Growth Capital Fund and multiple special purpose entities.

The firm’s private capital arm has made more than 40 investments and sourced, financed and managed more than $220 million in private capital.

Keystone Solutions Group

Founded in 1997, Keystone Solutions Group provides end-to-end solutions for highly engineered medical devices, from product development to contract manufacturing.

Keystone collaborates with customers around the world in the aerospace, automotive and medical device industries to design, develop, test and manufacture a wide range of products.

The company provides assembly, kitting, packaging and sterilization management services for single-use disposable and reusable medical products.

Keystone is registered with the FDA and ISO 13485:2016 certified.

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