Draper-based Kelso Industries, a mechanical, electrical and plumbing contractor with more than 4,000 employees, has secured $510 million in new capital to fund acquisitions and expand nationwide.

Salt Lake City private equity firm Peterson Partners announced Wednesday, Sept. 9 that it closed the capital raise for Peterson Kelso Coinvest, LP, a single-asset continuation vehicle tied to Kelso. A continuation vehicle lets a private equity firm hold onto a portfolio company rather than selling it outright, while giving existing investors the option to cash out or stay in.

NorthSands Capital, a New York investment firm, served as sole lead investor and committed more than $450 million.

Peterson Partners Fund X, the firm's flagship private equity fund, rolled its existing position into the new vehicle and added fresh capital, Utah Business reported. Peterson Partners manages roughly $3 billion across its funds.

From $17 million to $1 billion

Co-founders Steve Carroll and Steve Nicholson launched Kelso in 2021 with Peterson's backing, starting with a single Arizona contractor doing $17 million in annual revenue. By October 2025, Kelso had crossed $1 billion in annual revenue and completed 31 acquisitions, according to a company announcement at the time. The company now operates in more than 40 states.

Kelso serves data centers, healthcare facilities, airports, industrial sites and advanced manufacturing operations.

Spencer Clawson, a partner at Peterson Partners, said in the announcement that Carroll and Nicholson have built a business focused on the most demanding customers and project types in the country. "We believe the Company remains in the early innings of a significant opportunity," Clawson said.

Where the money goes

The $510 million is earmarked for more acquisitions, hiring and expansion into new markets, according to the press release. No specific targets or timelines have been disclosed.

NorthSands Capital was founded in 2023 by Bruce McEvoy, a former senior managing director at Blackstone who spent 16 years at the firm. McEvoy's Blackstone tenure included deals involving Utah-founded Vivint.

Kelso's model gives acquired companies local autonomy while plugging them into a national operation, according to the company. Jefferies LLC served as financial advisor to Peterson on the deal.