Strategy

Partnering with Entrepreneurs and Management Teams

KRG’s primary objective is to enable owners and management teams to achieve a meaningful “second bite of the apple.”  We accomplish this through the combination of a rollover equity investment (usually on the same terms as KRG) as well as robust incentive equity plans tied to the future value creation of the company.

In addition, KRG’s philosophy is to expand the ownership beyond what is typically in place prior to our involvement. We strive to include those individuals motivated by equity not only to influence their performance but also to help change their perspective so they will think more as “owners, not just as operators.”

Approach

KRG’s strategy begins by targeting investments in well-positioned, middle market platform companies that are

  • Profitable
  • Demonstrate strong growth prospects
  • Operate in fragmented industries

KRG will then work closely with a platform company’s management team in an effort to build the platform into a larger and more valuable enterprise through a combination of organic growth initiatives and a “customer-focused” add-on acquisition strategy.

This growth strategy is designed to

  • Improve distribution and/or supply chain management
  • Expand product, technology or service offerings
  • Broaden geographic presence
  • Increase management depth and operating efficiencies
  • Create an integrated delivery model

End Goal

The Firm’s primary investment thesis centers on building an industry leading “customer-centric” platform that will become a compelling and dynamic acquisition candidate for the next owner, whether it be another private equity group or a strategic corporate buyer.