KSB Sustainable Investments, the joint venture between global alternatives asset manager Salter Brothers and specialist investment manager Kilara Capital, has completed the first investment from its inaugural private equity fund.
The KSB Transition Fund, which targets profitable small to mid-market businesses involved in the shift toward lower-carbon, electrified supply chains, has invested in New South Wales-based Master Instruments, which supplies low-voltage battery systems to customers across Australia and New Zealand.
KSB managing director Ben Krasnostein said the investment reflects the broader approach of the fund.
“We are targeting established businesses that combine strong fundamentals with structural tailwinds. Master Instruments has the right characteristics for profitability, defensible market positioning and exposure to electrification trends. We look forward to supporting management in executing its next phase of growth,” Krasnostein added.
KSB partner Emma Jenkin stated the investment in Master Instruments reflects the aims of the fund.
“Master Instruments aligns strongly with our strategy of investing in high-quality industrial businesses that enable the energy transition,” Jenkin said.
“It is a resilient, cash-generative business with deep customer relationships and a long operating history. We see a clear opportunity to partner with management to support disciplined growth while investing in systems, people and operational capability.”
Master Instruments chief executive Phil Dunn said the partnership would support the company’s next phase of growth in its two divisions of custom engineering and assembly, and distribution.
“We were looking for a growth capital partner that understood the business and shared our long-term outlook. KSB brings the right mix of capital, operational experience and alignment to support the next stage of Master Instruments’ development,” Dunn said.
KSB Sustainable Investments was launched in November last year with a focus on decarbonisation outcomes and draws on Salter Brothers’ global expertise in alternative assets and Kilara Capital’s climate investment capabilities.
The KSB Transition Fund focuses on established, cash-generative businesses within industrial and supply chain infrastructure and aims to support them build scale within decarbonised global supply chains.
The fund is currently open to investors and is aiming for a target net return of 20 per cent net internal rate of return and a final close of $200 million.
