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
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
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
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.