KPS Capital Partners, LP and its affiliates (“KPS”), manage the KPS Special Situations Funds (the “KPS Funds”), a family of private equity funds with approximately $5.5 billion of assets under management. As the manager of the KPS Funds, our success is tied to our ability to create wealth for our investors, a group that includes leading institutional investors from around the globe. We have a significant portion of our personal wealth invested in the KPS Funds and share in the risks and rewards of our investments.
KPS seeks to realize significant capital appreciation by making controlling equity investments in companies across a diverse range of manufacturing industries experiencing a period of transition or challenged by the need to effect immediate and significant change.
We have demonstrated an ability to see value where others do not. Most of KPS’ investments involve creating new companies to acquire non-core assets or businesses divested by large multi-national corporations. We have a proven track record, successfully executed through numerous economic and business cycles, of transforming non-core assets or businesses into vibrant and thriving independent companies. We welcome opportunities to excel in situations involving highly complex corporate carve-outs of businesses on a global scale. The balance of our investments are the result of creating new companies to buy underperforming or distressed assets or companies, companies operating in bankruptcy, in default of obligations to creditors or with a history of recurring operating losses. KPS is not deterred from pursuing an opportunity because a company’s immediate future appears troubled or uncertain or the solutions to its operational or financial problems are complex. We understand that the commitment of significant time and resources, in conjunction with professional turnaround experience, is required to unlock the value of non-core, underperforming or distressed businesses.
KPS seeks to create wealth for our investors by making businesses better. Our investment strategy involves acquiring companies or assets at values we view as compelling, then implementing business plans based on cost reduction, productivity improvement and optimal asset utilization. Thereafter, we focus on growing our companies aggressively, both organically and through strategic acquisitions. KPS seeks to globalize the business and operations of our companies wherever possible. We provide our companies with a capital structure that provides the financial resources for capital investment, modernization and growth.
We are neither a hedge fund nor a leveraged buyout firm. We do not trade in public securities, but may purchase public securities in furtherance of obtaining a control position. We do not believe long term or sustainable value is created through financial engineering, by using excessive financial leverage or other capital structure related initiatives.
KPS is a constructive investor. Our experience in structuring transactions that align the interests of management, employees and all stakeholders is evidenced by the manner in which KPS has approached many difficult and complex situations. Our approach stands in sharp contrast to the confrontational approach often relied upon by other investors. KPS’ ability to work constructively with major unions in North America and increasingly in Western Europe has resulted in the creation of enterprises that are profitable and positioned for success over the long term.
We believe that KPS’ unique culture provides a real competitive advantage. KPS’ co-founders have worked as a team for over two decades. We believe our investment team’s track record, depth and breadth of experience, differentiated operations-focused investment strategy and firm culture differentiate KPS from other private equity firms. Our success is a result of a true team effort. There is no individual attribution of investments at KPS.
KPS is an active, control investor. Our professionals work closely with our management and employee partners at our portfolio companies to create stockholder wealth by developing truly effective turnaround and business plans, effectively overseeing their execution, providing advice and counsel through governance control positions, pursuing strategic follow-on acquisitions, joint-ventures and alliances, and 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.
The KPS Funds' Portfolio Companies have aggregate annual revenues of approximately $3.9 billion, operate 87 manufacturing facilities in 23 countries, and employ approximately 38,000 associates, directly and through joint ventures worldwide.