-- KSB Sustainable Investments (KSB), a joint venture between Kilara Capital and Salter Brothers, has completed the first investment from its inaugural PE Fund – KSB Transition Fund (KTF), backing Australian battery engineering and distribution business Master Instruments (MI).
The investment marks a milestone for KTF being its first close. KTF targets profitable small to mid-market businesses positioned to benefit from, amongst other things, the structural shift toward lower-carbon, electrified supply chains.
Founded in 1942, MI is a third-generation, Australian-owned battery engineering and distribution company supplying low-voltage battery systems to industrial, OEM and retail customers across Australia and New Zealand. The business employs over 120 staff and services more than 6,000 customers across a diversified range of end markets.
KTF focuses on established, cash-generative businesses, particularly those embedded within industrial and supply chain infrastructure. The strategy centres on supporting companies to scale within increasingly decarbonised global supply chains, while maintaining operational resilience and minimising disruption.
Emma Jenkin, Partner at KSB, said “MI represents the type of industrial platform KTF was designed to support. MI aligns strongly with our strategy of investing in high-quality industrial businesses that enable the energy transition. 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.”
MI operates across two complementary divisions: distribution and custom engineering & assembly. Its combination of broad distribution reach and in-house technical integration capability is viewed as a key competitive advantage, particularly as battery technologies and applications continue to evolve.
Phil Dunn, Chief Executive Officer and third-generation owner of Master Instruments, said “the partnership would support the company’s next phase of growth. KSB was selected for its partnership-led approach and its experience supporting businesses through periods of transition. 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 MI’s development. I want to thank Allunga Advisory for running a comprehensive process that explored all our capital strategy options and for connecting us with Kilara Capital.”
Ben Krasnostein, Managing Director of KSB, confirmed “that he was delighted with the transaction as it reflects KTF’s broader investment thesis. We are targeting established businesses that combine strong fundamentals with structural tailwinds. MI 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.”
Mr Krasnostein also added “that the investment underscores growing private capital interest in transition-oriented industrial assets, as investors seek exposure to electrification and supply chain resilience themes without taking early-stage technology risk”.
KTF continues to be open for investor commitments and conducts monthly closings, aiming for a target net return of 20% net IRR and a final close of $200 million.
Master Instruments was advised by Allunga Advisory as financial adviser and Ash St. as legal adviser. KSB Sustainable Investments was advised by Macpherson Kelley as legal adviser and BDO as accounting and tax adviser.
This announcement is for information purposes only and does not constitute an offer to subscribe for interests in any fund. Interests in KTF are available only to wholesale investors under applicable securities laws.
