Investment Profile

Investment Approach

We always look for opportunities to work actively with management in building the business. We view this as a key component of the value that KCG and its principals can bring to investment opportunities. This can take place through minority stakes as well as controlling interests.

We make investments of the following types:

• Acquisition and Recapitalizations: Through a highly collaborative process, we are able to develop thoughtful and successful exit strategies for business owners. Our versatile approach allows us to partner with existing management teams, including entrepreneurs seeking to retain operational control, or to engage new management if needed.
• Growth Capital: We help businesses obtain the capital they need to finance the next stage of their business strategy.  The structure of the financing is critical if the capital is to facilitate growth rather than impede it.  We work with both straight equity and mezzanine capital structures.

Investment Candidates

While the ideal prospect can take many forms, there are two essential criteria:

1) We have an opportunity to add value by strengthening a successful business, and
2) We can participate profitably.

These criteria are set out to ensure a meaningful return for our investors and impact for our portfolio companies

Preferred Investments:
1.Investment opportunities of $1 million or larger – with potential for follow-on
2.Flexible structuring (e.g. may include debt in combination with an equity investment)
3.Be a company’s first institutional investor
4.Relatively uncomplicated capital structure
5.Prefer providing expansion capital versus large investments in technology or IP

Preferred Candidates:
1.Annual Revenue for the Fiscal Year Prior to Investment: $2 - $30 million
2.EBITDA of $250,000 or more
3.Profitable or nearing profitability with positive cash flow
4.Experienced, highly capable management team with ability to attract and retain quality people
5.Satisfied customers and positive market dynamics