New York-headquartered Praesidian Capital has exited a $7.6 million senior debt investment in K1 Speed for an undisclosed return.
K1 Speed is one of the largest operators of indoor go-kart racing tracks in the US with 15 locations throughout California, eight in Texas, two in Chicago, Seattle, Phoenix and Fort Lauderdale. Praesidian Capital specialises in providing senior and subordinated term loans to small and mid-sized businesses.
Praesidian made its initial investment in September 2011 to fund K1’s expansion strategy. Jon Mansfield, partner at Praesidian, praised K1 Speed for demonstrating “solid performance that resulted in this early and successful exit.”
Mansfield believes the firm has “a terrific future in the go-kart and entertainment arena.”
David Danglard, chief executive of K1, describes Praesidian’s backing as “instrumental” in helping the firm expand its operations.
“We appreciated Praesidian’s support at a time when we were opening new locations in California, Texas, Florida and Illinois,” added Danglard.