The Charter Growth Capital Fund of Grand Rapids’ Charter Capital Partners has invested in Kalamazoo’s Keystone Solutions Group, a medical devices company and the fund’s first portfolio company. The targeted $100 million fund was launched earlier this year by Charter, an investment bank and management firm.
The investment in Keystone promotes the fund’s objective of investing $1 million-$5 million of mezzanine debt and/or equity capital into lower middle market companies in the Great Lakes region to support growth, succession, or recapitalization.
“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,” says Jim Medsker, president of 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 to continue the success of Keystone.”
Keystone offers solutions for engineered medical devices from product development to contract manufacturing. The fund’s investment recapitalized the company and provided growth capital for key marketing initiatives and operational improvements.
“Keystone is one of the few holistic providers of both product development and contract manufacturing services for medical devices, providing value across multiple points on the product supply chain,” says Hector Bultynck, managing director at Charter. “We are excited about their growth opportunities and look forward to translating that growth into meaningful returns for our investors.”
Current management will continue to operate Keystone, and the Charter team will spearhead enhancements in processes and governance, including representation on the company’s board of directors by John Kerschen, president and managing partner at Charter.
Keystone has been in operation for more than 20 years.