HKW adds Daniel Kim, former Bregal Sagemount exec, pushing further into tech

Kim is the second addition to the firm’s technology unit after Jeff Bistrong, who joined HKW in April to launch the firm’s technology investing practice.

HKW has hired Daniel Kim as a partner on the technology team, building out the PE shop’s newly launched tech effort.

Kim is the second addition to the unit after Jeff Bistrong, who joined HKW in April to launch the firm’s technology investing practice.

Kim joins HKW from Bregal Sagemount, where he was a co-founder and a former investment partner. He previously worked at JMI Equity and at Goldman Sachs’ Americas Special Situations Group.

HKW, following the pair of recent hires, is on the hunt for an operating partner to join the senior team, two vice presidents or post-MBA hires, as well as several pre-MBA associates.

Unlike more traditional private equity funds that favor control buyouts, HKW plans to differentiate by being flexible and invest in all capital structures, Daniel Kim told PE Hub. “My goal is to work creatively with owners and operators to finance their growth,” Kim said.

“To do that, we are seeking to basically to invest in really all flexible capital structures, including control buyouts, minority growth equity, and structured capital via a pool of flexible capital.”

Kim over the last 15 years sourced and executed investment ranging from lower minority equity positions to buyouts.

“I think one of the skills that I bring is a key awareness of the right capital solution for the situation that is presented,” Kim said.  “I figure out where I can be helpful, but I also know where I cannot be that helpful, and that’s where I seek to defer to other experts or to define other sources of expertise to solve that problem.”

HKW is open to all opportunities in technology that have recurring revenue models, whether that’s an enterprise technology business, a payments company, or a business in hosting infrastructure, the investor said.

Specific end-markets of interest include compliance, financial technology and healthcare, Kim said.

The Indianapolis private equity shop is pushing into technology investing to take advantage of the fragmentation within the lower-end of the mid-market landscape, Jeff Bistrong told PE Hub in a recent interview.

The firm will execute both control buyouts supported by equity investments of up to $75 million, and, on the lower end of the spectrum, structured equity investments supported by equity commitments of up to $15 million.

Before launching its tech investing practice, HKW, led by CEO Ted Kramer, invested in the business services, health and wellness sectors. The firm backs companies with $5 million to $30 million in EBITDA.

Action Item: Read about Jeff Bistrong joining HKW here.