Investment Criteria

We invest in fundamentally well-positioned business services, value-added distribution and specialty industrial companies undergoing transition or experiencing change and adhere to the singular goal of long-term value creation through the execution of organic growth and complementary acquisitions, strategic and operational improvements, disciplined capital investments, and, in turn, accelerated revenue and earnings growth. 

We seek to partner with niche market leaders, build upon their strong heritage and amplify their existing capabilities to transition them into larger and more valuable enterprises. 


TARGET COMPANY & INVESTMENT PROFILE

business services, value-added distribution and specialty INDUSTRIAL

$15 to $150 Million of enterprise value; $20 to $200 million OF revenue; $3 to $15 million of ebitda
(any size for add-on acquisitions)

$5 to $50 million of equity per platform; control equity focus (minority equity in select instances)

flexible and patient capital from the kcm team and our strategic relationships with family offices, high net worth individuals, executives and private financial institutions

fundamentally well-positioned companies undergoing transition or experiencing change

preference for family/founder owned businesses and/or first private equity capital opportunities

lower middle market niche leaders with transformative opportunities through IDENTIFIABLE AND EXECUTABLE value creation initiatives and accelerated growth strategies

strong management in-place or identified, history of strong/stable cash flow, leading business and market fundamentals, deep customer-centric focus and defensible market share

secular growth, revenue expansion tailwinds, attractive and/or improving EBITDA margins, high free cash flow conversion dynamics

Industry

company Size


investment type

capital sources


company profile

ownership

positioning


technical merits


trends