Kingsman Capital has launched as a Chicago-based private equity firm focused on opportunities in the middle markets. It is being run by Keith Konesman, who has previously held positions with Merrill Lynch, Dresner Partners, Divine Interventures and Banc of America Securities.
Private equity firm Kingsman Capital LLC (http://www.kingsmancapital.com/), a middle-market private equity firm, announced today that Keith Koeneman has founded launched the firm, which will focus on investing in middle-market businesses. Kingsman Capital targets private companies with $5 million or less of EBITDA for transactions including leveraged buyouts, recapitalizations, growth investments, industry consolidations and family successions. The Board of Advisors of Kingsman Capital includes CEOs, senior executives, entrepreneurs, investors and investment bankers with more than 100 years ofvast experience in growing, financing and managing businesses.
Mr. “Kingsman Capital’s strategy meets a heretofore unmet need: flexible and sophisticated private equity capital in the middle-market,“ Koeneman said. “The economy and the financial markets are currently experiencing unprecedented turmoil, creating a certain significant level of risk aversion in the business community. But this has also created unique investment opportunities for middle-market businesses. Kingsman Capital is structured to provide funding to high-quality middle-market businesses and deliver attractive risk-adjusted returns to our investors.”
Mr. Koeneman also expanded on his current perspective for middle-market private equity in 2009:
•“During the first half of 2009 investing will continue, but significant focus will be on portfolio company survival. We should not assume that we’ve seen the worst yet; some portfolio companies may see a 10 percent to 30 percent drop in revenues.” Koeneman continued, “Company executives will need to ‘rise to the occasion’ and provide decisive leadership. Additionally, industry expertise will be more critical than ever and private equity firms will tap into their operating partners and networks of contacts to help their portfolio companies.”
That said, Koeneman believes that private equity investment will pick up significantly in the second half of 2009, with stabilized credit markets, extremely thorough due diligence and seller expectations and valuations which will have adjusted to lower levels.
”Investments will focus on companies with attractive growth rates, recurring revenues and leadership potential in what will be a sizable market,” Koeneman forecasts, adding that health care, business services, energy, food and training/education will be among the leading segments for investment.
Commenting on Kingsman Capital, Nancy Lerner, Co-Founder of Otherwise Inc. and Brill Street + Company, Inc., and a member of Kingsman Capital’s Board of Advisors said, “Baby boomers will sell or recapitalize more than eight million privately-held companies over the next decade. As an experienced businessperson and entrepreneur, I understand how stressful and demanding a corporate transaction can be. Kingsman Capital has the strategy and talent to help executives and families make that transition successfully and profitably.”
KeithKoeneman, is a native of Chicago, began who his career in 1990 at Kidder, Peabody & Co. His professional experience spans private equity, investment banking and corporate law. He has invested in, advised on, or personally negotiated, more than 30 transactions ranging from $6 million to $1 billion. He has significant experience with private, middle-market businesses in a wide range of industries, including healthcare, business services, manufacturing, technology and education & training.
Jeff Markowitz, President & CEO of WheeGo Inc. and former President of CS STARS LLC, and a member of Kingsman Capital’s Board of Advisors said, “As someone who was involved in growing a relatively small business to greater than $100 million in revenues, I know the challenges that business owners face. Keith Koeneman brings the experience and network, along with a passion for working with business owners and entrepreneurs that will well serve his investors and portfolio companies.”
Prior to founding Kingsman Capital, Mr. Koeneman’s professional experience included senior positions at Merrill Lynch, Dresner Partners, Divine Interventures and Banc of America Securities. He also has practiced law at Katten Muchin Rosenman LLP. Mr. Koeneman holds a BA from Carleton College, a MBA from the University of Chicago, a JD from Northwestern University and a Masters in Public Administration from the John F. Kennedy School of Government at Harvard University.
About Kingsman Capital LLC
Kingsman Capital LLC is a Chicago-based private equity firm that invests in middle-market businesses. Transactions include leveraged buyouts, recapitalizations, industry consolidations and family succession transactions, as well as growth investments to fund expansion or acquisition. The firm also invests in high-quality companies during periods of financial transition (i.e., good companies with bad balance sheets). Kingsman Capital targets companies in North America with $5 million or less of EBITDA. Integrity is the cornerstone of Kingsman Capital’s success and the Company strives to bring the highest level of honesty and ethical behavior to all of its relationships.
For additional information on Kingsman Capital LLC, visit the firm’s website at http://www.kingsmancapital.com/,