KCP Capital completes $65m in equity financing transactions

KCP Merchant Banking, led by managing partner Kamal El-Tayara, closed $43m in private equity financing for leading companies in the clinical genomics and massively multiplayer online gaming segments.

"Quickly and successfully completing these private equity deals this summer is a great indicator of KCP's ability to execute even in challenging markets and is a validator of our cross-border focus. From Silicon Valley to the GCC, we leverage our relationships to bring value to our clients in the form of equity capital, transactional structuring, and management advisory,"

noted El-Tayara.

At the same time, KCP Capital's Digital Media team realized record second quarter results from KIT digital, its key portfolio company. The Internet Protocol 'IP' video content management company reported $10.5m in revenues in Q2 and its third consecutive quarter of expanding cash-flow margins.

On August 18, KIT digital completed a $27.7m registered public offering of common stock and concurrently obtained listing on the NASDAQ Global Market under ticker 'KITD.'

On August 31, the 15% overallotment option was exercised by the lead underwriter of the registered offering, providing another $3.9m of net proceeds to the company. KIT digital intends to use the net proceeds of the financing primarily for the purpose of acquiring competing businesses in the IP-based video management industry.

"Together with our newly effective NASDAQ listing, the oversubscribed equity raise reflects our leadership position in the IP-video content management industry and puts us in position to extend this lead through selected, accretive acquisitions," commented Kaleil Isaza Tuzman, managing partner of KCP Capital and chairman and CEO of KIT digital.

KIT digital will be ringing the NASDAQ closing bell on Thursday, September 3, 2009. The ceremony will be held at the NASDAQ's MarketSite in New York City and available for viewing live online starting at 3:50 p.m.

KCP Capital also announced its affiliation with Maverick People, a premier Dubai and London-based executive search agency. This partnership will allow for greater value-add in KCP Merchant Banking's interim management and restructuring services, bringing experienced outside executives to bolster the already experienced KCP internal team in working with portfolio companies.