Private Equity
We’ve leveraged the expertise of Kreye Parnters’ Investment Banking Group to create KP Capital, LLC. KP Capital, LLC focuses investments in small to middle market privately held companies in the Southeast.
Our Focus and Approach are unique in 5 areas:
1. Less Efficient Markets – We target companies that the rest of private equity does not focus on.
|
a. Size: We seek companies in the $2.5 Million to $25 Million revenue arena. Most PE Groups do not examine companies with revenues below $50 million. b. Performance: We understand companies with checkered past and create a structure to overlook past problems to see the future opportunity. Most Private Equity groups focus on companies with existing outstanding performance. |
2. Scarcity Power – The Company must have a proven business model and scarcity power in the market.
|
a. Market leader in niche. b. Opportunity to grow c. Long standing relationships with customers, vendors, and key employees |
3. Operations Opportunities to Exploit – We must identify opportunities inherent to the company where we can exploit our intellectual capital.
4. Able to secure Debt Financing – The Company must have operational cash flow that allows us to leverage our investment.
5. Pass due diligence – The Company must pass our through due diligence process.
Differentiation:
KP Capital, LLC is different from typical Private Equity Groups in 4 Areas:
|
KP Capital vs. Other Private Equity Groups
|
||||
|
Major Differences
|
KP Capital
|
Typical PE Firm
|
||
|
Investor Participation
|
Shareholders participation and advice are highly valued | Investors are passive and are not utilized | ||
|
Investor Choice
|
Investor has a choice on a deal by deal basis | No choice on which deals to invest | ||
|
Fees & Expenses
|
Believed to be the lowest in the industry (1). | Deal fees, management fees, due diligence fees, and carried interest are substantial | ||
|
Board of Directors
|
Two to Three outside individuals on every transaction. The Board is active, are significant investors, and bring relevant industry experience. | Board is typicallly passive and comprised of inside directors. No investment or industry experience required (1). | ||
|
|
||||
* This is neither an offer to purchase nor a solicitation of an offer to sell. Any offer is made soley to Accredited Investors by the Private Placement Offering Package and the Offering Package should be carefully read prior to any decision to invest.