Investment Approach
Strategy
Kilmer invests mainly in private companies both directly for its own account and indirectly through funds it manages for significant financial institutions and pension funds. Currently such funds include Kilmer Capital Funds I and II and the Kilmer Brownfield Equity Fund.
The Kilmer Group will invest in areas where its unique mix of skills and experiences, derived from its successful operating and investment activities, will enable it to maximize returns on those situations where it can increase value. Kilmer takes a hands-on, active, catalyst investor approach and works closely with the operating management in the growth and development of a company rather than solely as a financial partner.Investment Criteria
- While Kilmer Capital Fund looks at equity contributions of $15 million - $40 million, KVN has no such restriction and will look at opportunities requiring equity beyond that available to Kilmer Capital Fund.
- Majority ownership or significant minority investments
Company Criteria
- Sales of $10 million - $200 million in respect of Kilmer Capital Fund and $100 million and up in respect of KVN.
- A strong, proven management team backed by meaningful financial commitment
- Attractive growth prospects with significant operating leverage or steady cash flow
- Opportunities to accelerate growth through aggressive M & A, augmenting management, or business repositioning
- A proven business model and a competitive advantage
Investment Situations
Typically, we sponsor companies in the following situations:
- Expansion capital to increase capacity, enter a new market, launch a new product or make a strategy acquisition
- Consolidation or build up of a company in a fragmented industry
- Divestiture of a non-core business by a large public or private company
- Management buyouts or buyins
- Financial restructuring of an excessively leveraged but otherwise healthy business
- Rapidly growing companies constrained by limited financial and managerial resources
- Family owned businesses facing management succession issues
- Rapidly transforming industries affected by technological, regulatory or competitive change
