| Industry Focus |
KPS targets manufacturing, transportation, and service businesses. We will consider all industries except for high technology, financial services, telecommunications, broadcast media, real estate and natural resources (exploration). |
| Investments in Going-Concerns |
KPS targets operating businesses, including divisions, subsidiaries or individual plants of larger companies capable of operating as stand-alone companies. We do not invest in start-up ventures (re-starts). |
| Transaction Size |
KPS targets opportunities with total transaction sizes up to $1 billion. We may sponsor larger transactions by co-investing with our limited partners, other investors or employee groups. KPS has successfully completed many investment transactions with co-investors. |
| Range of KPS Investment |
KPS seeks to invest $25 to $150 million of capital in each transaction. Through its limited partners, KPS has access to additional capital to fund larger transactions. |
| Equity Capital |
KPS generally invests in common stock or in securities that are convertible into common stock, including preferred stock securities. We will make extend secured or unsecured loans in connection with obtaining control pursuant to a purchase transaction. KPS has and will extend Debtor-In-Possession (DIP) financing. |
| Target Company Revenues |
KPS targets businesses that have revenues of at least $200 million. |
| Target Company Profitability |
A history of profitability is not necessary to be considered as a KPS investment. We will consider businesses with a history of operating losses. Almost all of our portfolio companies were not profitable prior to their creation or acquisition. |
| Target Company Management |
KPS will consider opportunities that require the introduction of new management. We have been successful at partnering with existing management teams as well as at recruiting new teams into our portfolio companies. |
| Control |
KPS is a control investor. While we generally own a majority of a company's common stock, we exercise control by nominating a majority of a company's board of directors. As long as we maintain control, we are flexible regarding the size of our economic ownership of a company. |
| Bankruptcy/Default |
KPS will consider purchasing businesses operating in bankruptcy or operating in default of obligations to creditors. We will consider sponsoring a plan of reorganization for a debtor-in-possession pursuant to a plan of reorganization in Chapter 11 bankruptcy or through a Section 363 asset sale. |
| Geography |
KPS targets companies headquartered and with a majority of operations located in the United States and Canada. |
| Intermediaries |
KPS will pay intermediary and finder fees. |
