KPS seeks to realize significant capital appreciation by making controlling equity investments in companies engaged in manufacturing, transportation, and service industries challenged by the need to effect immediate and significant change – Special Situations. Special Situations include turnarounds, restructurings, bankruptcies, and corporate divestitures. KPS will pursue opportunities involving companies operating in bankruptcy, in default of obligations to creditors, or with a history of recurring operating losses. KPS has created stand-alone independent companies from assets divested by large corporate parents and made equity infusions to recapitalize highly leveraged companies. We will only invest our capital concurrent with the implementation of a concrete plan to return a company’s operations to profitability, accompanied by a new capital structure that provides the financial resources for capital investment, modernization and growth.

KPS creates value by sourcing truly unique investment opportunities. We believe superior investment returns are achieved by targeting companies that cannot otherwise obtain access to capital or operate in out-of-favor industries. We understand that the commitment of significant time and resources, in conjunction with professional turnaround experience, is required to unlock the value of a distressed or underperforming business. KPS is not deterred from pursuing an opportunity because a company’s immediate future appears troubled, uncertain or the solutions to its operational or financial problems too complex.

KPS is a constructive investor in Special Situations. Our experience in structuring transactions that align the interests of management, employees and capital is unequaled and is evidenced by the unique manner KPS has approached many difficult and complex situations. Our approach stands in sharp contrast to the confrontational approach often relied upon by other investors in Special Situations.

KPS has worked constructively with most of the major industrial and service unions in the United States and Canada. We have sponsored many transactions in partnership with unions, and unions bring a significant number of quality investment opportunities to our attention every year. Unions work with KPS because of our respect for the collective bargaining process and our successful track record in creating viable and profitable going concern.

KPS is more than an investor. Our professionals work intensely with our management and employee partners at our portfolio companies to build stockholder wealth by providing effective oversight, advice and counsel through our control position on boards of directors, by arranging successful financings and capital markets activities, by pursuing follow-on acquisitions, alliances and divestitures, and by implementing creative incentives for management and employees. Our investors understand that building equity value takes time, and we encourage our companies to take a long-term perspective.

KPS looks forward to creating wealth for our investors by continuing to invest our capital in unique situations in accordance with our disciplined approach and strategy.