INVESTMENT
Investment Approach
Kin Capitel concentrates on investing in global companies with clear opportunities for transformational value creation. We invest in businesses in which we identify clear value creation opportunities. We deliver value creation by transforming businesses both strategically and operationally. Options for transformation include: building local champions into international leaders through cross border acquisitions, operational and financial re-engineering, expansion into new markets, and development of new products and services.
International Expansion
We pursue markets, sectors, and companies with a national and global expansion approach, built on our assessment of risks and opportunities. Our evaluation exercise, from which portfolio companies benefit, is supported by our team's knowledge of the global marketplace.
Partnership with Management
We seek to work in close partnership with high quality management teams in the pursuit of value creation. Friendly and open relationships with management teams are built upon mutual respect. As a firm, we do not interfere in managers’ daily activities, unless required or requested; rather, we act as a source of strategic guidance for major business decisions. We are entrepreneurs ourselves and find that our outlook and aims align with those of our management teams.
Investment Criteria
Kin Capitel favors investment opportunities that demonstrate some or all of the following characteristics:
Enterprise value of between $1 million and $20 million
Control investment positions
Market-leading businesses, with defensible positions
Potential for organic growth and further consolidation within the industry
Opportunities for international expansion
Entrepreneurial management team
Our Difference
We actively seek out investment opportunities where our expertise can make a difference.
Unique Team and Structure
While we are international in background and outlook, we can respond to investment opportunities across our target markets quickly and flexibly. Our team consists of multiple nationalities, enabling us to function as a local in many major markets, bringing local contacts and skills to cement our relationship with our counterparties.
Entrepreneurial Approach
We are experienced at working alongside family owners, corporate sellers, and entrepreneurs who may wish to maintain an ongoing interest in their business. We think and act as entrepreneurs and, as such, our approach aligns with that of the management teams we back and the other shareholders and stakeholders with whom we work.
Management Support
We trust the management teams we back to make the necessary operating decisions. At the same time, we serve as a source of strategic guidance and support in major business decisions.
Financing Relationships
We have a broad spectrum of financing experience, which we use to establish optimal and innovative capital structures in our investments.
Access to Experienced Professionals
Thanks to our international experience and contacts, we are able to bring in seasoned industry professionals, usually as non-executive directors and advisory board members, to assist with defining a strategic vision for the business. In addition, our network of contacts can be called on for sector expertise, to support business development and other initiatives.
Structure
Venture & Growth Capital
Direct equity investment in young, innovative companies with very high growth potential.
Private Debt Funding
Senior or subordinated debt investment in SMEs and mid-tier enterprises with organic or external growth plans.
Uses of Our Capital
Our capital is commonly used to provide liquidity to shareholders, working capital for growth, and/or financing for acquisitions.
Ownership Positions
We take minority or majority positions typically ranging from 10% to 75%. We are always an active, value-added investor, generally working with management on key objectives at the board level; whatever ownership position, we leave the day-to-day operations to the management team.
Investment Period
We are a medium-term, patient growth investor looking to build value over time, with a holding period of three to seven years.
Capital Markets
Optimize capital structure to support organic and inorganic growth initiatives using debt and equity. Drive the IPO readiness process and provide access to public markets.
Revenue Growth
Accelerate growth via salesforce effectiveness initiatives, pricing strategies, customer analytics, and more. Identify new growth areas through geographic and vertical expansion.
Performance Improvement
Optimize cost structure and identify opportunities for outsourcing, and procurement and purchasing improvements.
Talent and Human Capital
Evolve and scale management from entrepreneurial to professional, public-company quality teams.