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For Investors

Kamylon’s unique managerial investing business model and LargeLocal market focus offers investors an opportunity to achieve superior risk adjusted returns on their capital. We avoid the volatility related to market bubbles and frothy financing environments by minimizing leverage and focusing on buying right and using the Kamylon Management System to strengthen our businesses and drive superior returns. Specifically, Kamylon differentiates itself from most buy-out firms through the following:
  • Managerial holding company structure that provides a number of advantages that are quite difficult to realize in any other structure (especially when compared to traditional buy-out funds)
  • Obsessive Focus on risk.  Too many financial buyers look at a simple IRR hurdle to justify an investment. Kamylon is sharply focused on risk adjusted cash-on-cash returns and believes that no single hurdle number can appropriately determine an investor’s success. Everything we do is focused on maximizing return while simultaneously minimizing risk.
  • Focus on long term value.  Kamylon actively seeks investments that have the ability to generate strong and growing cash flow. We are disciplined long-term investors, not “traders,” and we do not rely on risky growth projections or short term multiple expansion to justify our investments. Because we focus on building long term value, our returns are not as sensitive to short-term swings or bubbles in valuation multiples.
  • Kamylon Management System (KMS).  Investment judgment and the ability to structure a deal are not enough to be successful in what has become a crowded and competitive M&A market. Kamylon identifies opportunities to create value through business building and operational improvement, driven by the Kamylon Management System. Most buy-out firms claim to add managerial expertise, but oftentimes the only evidence is their presence at quarterly board meetings. Kamylon has the mindset and depth of operations-focused talent to roll up our sleeves and work side-by-side with business unit managers to create value through driving sustainable performance improvement. Independent research commissioned by Kamylon showed that no middle market buyout firm (unlike the world’s best operating companies) deploy a world class “management system” or even use the term in describing portfolio company management. 
  • Proprietary deal flow.  Kamylon’s ability to generate proprietary deal flow is evidenced by the fact that 100% of its closed transactions were originated internally and were not the result of an auction process. Our Associates proactively build relationships with thousands of business owners annually to generate a strong pipeline of investment opportunities. This effort is supplemented by deal flow originated within the personal and professional networks of our extended team.
  • LargeLocal market focus.  Kamylon believes the lower middle market provides the most attractive investment opportunities for a variety of reasons. There is a large universe of over 600,000 US businesses which are often in the midst of significant growth. Many of these companies lack the capital, resources and/or management expertise to reach their full potential, and Kamylon is ideally and uniquely positioned to make good businesses even better.
  • Complex transactions.  Kamylon embraces transactional and operational complexity in its investments. We believe that this best serves business owners and can be a key driver of unlocking value. Too many investors look for the easy “lay-up” and end up overpaying for companies that cannot generate attractive returns without massive amounts of leverage, restructuring and risk. Conversely, Kamylon focuses on situations where the complexity associated with the transaction or the business itself result in a fair purchase price and the opportunity to drive value creation through performance improvement.
  • Experienced team.  Combined, Kamylon’s professionals have over 150 years of investing and management experience. Kamylon’s management partners possess a depth and breadth of managerial experience not found at most buyout firms, in particular those targeting the lower middle market. This experience gives Kamylon a competitive advantage in sourcing, selecting, and executing transactions, as well as building on an owner's legacy and creating value after closing.
  • Top-down, bottom-up.  Kamylon’s disciplined process begins with a top down approach to find attractive target industries or sectors. Through this approach, we identify industries whose financial and structural characteristics are compelling and then identify what macroeconomic, demographic or structural trends will be favorable in the future. From there we take a bottom-up approach to identifying and databasing attractive companies, developing quantitative models, and building relationships with business owners who one day will desire a transaction. Few if any buyout firms have developed such a thorough, systematic and repeatable approach to finding quality investments.