KPS Capital Partners

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KPS Capital Partners
TypePrivate
IndustryPrivate Equity
Founded1991[1]
HeadquartersNew York, New York
Key people
Michael Psaros, David Shapiro, Raquel Palmer, Jay Bernstein
ProductsLeveraged buyout
Total assets$12 billion
Websitewww.kpsfund.com

KPS Capital Partners is an American investment company that manages KPS Special Situation Funds, a family of investment funds. KPS specifically invests out of two funds raised in October 2019: KPS Special Situations Fund V ($6.12 billion) and KPS Mid-Cap Fund ($1.02 billion).[2]

History

The company was founded in 1991 by Eugene Keilin, Michael Psaros, and David Shapiro, hence the KPS name.[3] KPS raised its first institutional fund in 1998.[4][5] On May 6, 2019, KPS Capital Partners signed an agreement with Brunswick Corporation to purchase its fitness business valued at $490 million in an all cash transaction.[6] In 2020, KPS completed five platform investments, including IKG (January 2020),[7] Lufkin Industries (June 2020),[8] Briggs & Stratton (September 2020),[9] AM General (October 2020)[10] and Hussey Copper (December 2020).[11] In 2021, KPS announced the acquisition of the aluminum rolling business from Norsk Hydro[12] and the EMEA food and consumer packaging business from Crown Holdings. [13]

Operations

The firm is not a hedge fund, but focuses on making controlling equity investments in manufacturing and industrial companies. Many of its investments "involve creating new companies " that buy underperforming assets, such as "companies operating in bankruptcy or in default of obligations to creditors", or otherwise with a history of "recurring operating losses".[14] KPS is a global firm headquartered in New York City with offices in Frankfurt and Amsterdam that invests in both North American and European-headquartered companies. The KPS Funds' portfolio companies currently have assets under management worth $12 billion, operate 158 manufacturing facilities in 22 countries, and have approximately 32,000 employees.[15][16] In 2019, KPS Fund V, the firm's active flagship fund, had $15 billion of investor demand for a $6 billion fund."[2][17]

The Financial Times noted that, while private equity firms often have a bad reputation for stripping assets and slashing jobs when buying distressed companies, KPS has established a reputation for constructive relationships with the workforce and their unions.[18] In 2009, Psaros estimated that he had saved about 20,000 jobs.[18] Unions also have appreciated that KPS uses little or no debt in its deals and have called in KPS to save companies.[18] KPS has worked with large manufacturing and industrial unions, having a "history of consulting workers" as noted by AFL-CIO. In Europe, KPS has established relationship and Framework Agreements with the German unions IG Metall and IG BCE.[19][20]

Business units

The following (incomplete) list includes major companies that are or had been controlled by KPS:[21]

Notes

  1. ^ Bloomberg Business Company Snapshot
  2. ^ a b Kreutzer, Laura. "KPS Capital Partners Raises $7 Billion for Newest Funds". The Wall Street Journal. The Wall Street Journal.
  3. ^ Boselovic, Len (February 16, 2014). "Heard Off the Street: Psaros based his career on a bold experiment". Pittsburgh Post-Gazette. Retrieved February 12, 2015.
  4. ^ Cardoletti, Giada (August 2005). "Working with Unions is Labor of Love for KPS" (PDF). DowJones Private Equity Analyst. Retrieved April 19, 2021.
  5. ^ Staff, T. N. H. "Psaros and Shapiro's KPS Simultaneously Closes $6B Special Situations Fund V and $1B Mid-Cap Fund". The National Herald. Retrieved 2021-04-19.
  6. ^ "Brunswick Announces Sale of Fitness Business". Brunswick Corporation. Retrieved 2019-05-06.
  7. ^ "KPS Capital Partners Acquires IKG Industries | Mergr". mergr.com. Retrieved 2021-04-07.
  8. ^ Garcia, Luis (2020-05-01). "KPS Capital Bets on Energy in Buying Lufkin Unit of Baker Hughes". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-04-07.
  9. ^ "KPS Capital Goes on Offense Buying Humvee and Lawn Mower Makers". Bloomberg.com. 2020-08-14. Retrieved 2021-04-07.
  10. ^ Judson, Joe Gould, Jen (2020-07-22). "Private equity firm buys Humvee-maker AM General". Defense News. Retrieved 2021-04-19.
  11. ^ "KPS Capital Partners Acquires Hussey Copper - Metal Center News". www.metalcenternews.com. Retrieved 2021-04-07.
  12. ^ "Norsk Hydro sells its aluminum rolling business". Recycling Today. Retrieved 2021-04-19.
  13. ^ "KPS Capital Partners to acquire aerosol, food packaging business from Crown". World Aerosols. Retrieved 2021-04-18.
  14. ^ McNulty, John. "KPS Races to $7 Billion, 30% Carry". Private Equity Professional. Private Equity Professional.
  15. ^ McNulty, John (2019-10-21). "KPS Races to $7 Billion, 30% Carry". Private Equity Professional. Retrieved 2021-04-19.
  16. ^ a b "Hussey Copper bought by private equity firm looking for growth". Pittsburgh Post-Gazette. Retrieved 2021-04-19.
  17. ^ Kreutzer, Laura. "Kreutzer's Take: Four Takeaways From KPS's Latest Fundraising". The Wall Street Journal. The Wall Street Journal.
  18. ^ a b c Arnold, Martin (March 26, 2009). "The friendly barbarian". Financial Times. Retrieved February 13, 2015.
  19. ^ Boyce, Christopher. "Private equity firm KPS works with unions for a smooth transition" (PDF). St. Louis Post-Dispatch. St. Louis Post-Dispatch.
  20. ^ "Hydro to Sell Rolling Business to KPS Capital Partners". Steel Guru. Steel Guru Business News.
  21. ^ "Private Equity Firm, Manufacturing". KPS Capital Partners. 2014.
  22. ^ "TaylorMade Golf sold for $425 million to KPS Capital Partners LP". Golf. May 10, 2017.
  23. ^ Gould, Joe (August 13, 2020). "AM General CEO on acquisition by a private equity firm". Defensenews. Retrieved February 5, 2021.
  24. ^ "Briggs & Stratton enters into $550M sales agreement with KPS Capital, files Chapter 11 reorganization". The Business Journals. July 20, 2020.
  25. ^ "New ownership, new name – aluminium rolling and recycling by Speira". Aluminium International Today. Retrieved 2021-09-09.

External links

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