KRG’s strategy is to target investments in well-positioned, middle market platform companies that are profitable, have strong growth prospects and operate in fragmented industries. KRG works 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 create
An integral factor in accomplishing this ultimate goal is the extensive role KRG will look to play post-investment. KRG works with management to identify and implement operational and process improvement opportunities across the organization, and to develop and execute integration plans for add-on acquisitions. Throughout the life of the investment, KRG also seeks to continually supplement and upgrade the management team as necessary in response to the changing needs of a platform company.
Core tenets of KRG’s philosophy include
Fairness and Partnering Treating all parties in a transaction fairly to create a “win-win” situation is a trademark of KRG. We strive to develop a true sense of partnership between ourselves and the owners, management and employees of the companies in which we invest. We make every effort to align ourselves with management and employees to ensure that they have the opportunity to acquire a meaningful ownership stake in the company through implementing stock purchase, stock option and performance-based equity incentives.
Management Retains Operational Control While KRG does not become involved with day-to-day operations, we are strong partners for growth. Our team is actively involved in assisting management in financial matters and executing acquisition strategies, allowing management to focus on successfully operating the company. We believe that this provides our portfolio companies with a significant advantage in implementing a successful growth strategy.
Confidentiality We know how important confidentiality is in any potential transaction. We are a private organization with no mandates for public disclosure, even after the transaction has been completed. The partners of KRG are committed to keeping any shared information or acquisition discussions in strict confidence.