Focus

Investing in Good Businesses and Good People

Investment Approach

Company EBITDA
$2mm to $5mm
Management participation
All Transactions
Transaction Type
Majority / Minority
Investment Horizon
Patient / Flexible
Ownership Situation
Family / Entrepreneur
Industries
Specialty Services
Value-Added Distribution
Niche Manufacturing

We believe companies will continue the trend of outsourcing critical operational services to third-party specialists over time. Investing in specialty services companies is a core focus of our team, and we understand what it takes to help service-based companies succeed in today’s changing business environment. We help accelerate growth and build great service-based companies by providing operational support, prioritizing labor recruitment and retainment, and investing in field-level and back-office infrastructure. Below are a few representative areas of interest:

  • Environmental and Safety
  • Industrial Facility MRO
  • Residential and Commercial Services
  • Testing, Inspection, and Certification
  • Utility and Infrastructure
  • Water and Wastewater Services

Our team has deep experience partnering with value-added distribution businesses. We invest in a variety of value-added distribution companies, including those that have built their own proprietary vendor networks and those that have developed long-term distributorship relationships with a few critical suppliers. In partnership with management, we work with value-added distributors to expand their product and end market capabilities, gain scale through investments in systems and technology, and further strengthen customer relationships by adding kitting, assembly, and service-based revenue streams. Below are a few representative areas of interest:

  • Aftermarket Parts and Components
  • Assembly, Kitting, and Calibration
  • Automation and Flow Controls
  • Engineered Industrial Products
  • Safety Equipment and Tools
  • Water and Wastewater Equipment

We are always looking to partner with high-performing, entrepreneur-owned niche manufacturing companies. We enjoy walking a shop floor and seeing first-hand the ingenuity of business owners and the people they employ. We support our manufacturing partners by investing in capital and back-office infrastructure, fostering growth and expansion into new end markets, and enhancing the bespoke operational and manufacturing techniques that make each business unique. Below are a few representative areas of interest:

  • Consumable and Wearable Parts
  • Engineered Industrial Products
  • Plastic and Rubber Molding
  • Protective Packaging
  • Specialty Fabrication
  • Testing and Measurement
Transaction Types
Majority Recapitalization

As family-owned companies evolve, there comes an appropriate time to consider bringing on additional resources to drive the business to the next level. Whether the entrepreneur is looking for personal liquidity, capital for growth initiatives, or a combination of both, we work with business owners to find a solution that matches their personal goals and objectives. A majority recapitalization allows shareholders to realize value for a substantial portion of their business while also receiving resources from Keswick to capitalize on future growth opportunities. A majority recapitalization with Keswick presents an ideal option to company owners who are seeking liquidity but still want to retain meaningful ownership and operate the business on a day-to-day basis. An investment with Keswick ensures that the company’s legacy and culture are maintained.

Minority Recapitalization

A minority recapitalization is an attractive alternative to business owners who would like personal liquidity or growth capital today while still retaining majority ownership in their business. Keswick can tailor a solution that fits each shareholder and manager’s unique personal goals and objectives. Through a minority recapitalization, the company’s existing management team continues to drive the day-to-day direction of the business while maximizing their participation in the company’s future value. Keswick becomes a strategic partner for the company, acting as a sounding board for senior leadership and tailoring a balance sheet positioned for growth.

Management Buyout

We frequently see management teams running businesses with little to no ownership and no means to buy the business for themselves. Keswick supports senior leadership teams in purchasing businesses through a management buyout, allowing the current owners to realize the value of their business while also maintaining the company legacy and culture built through years of hard work. By working with us in a management buyout, active managers and/or certain family members continue to operate the business while gaining a strong financial partner to assist with capital needs and the company’s strategic direction. We believe management teams deserve an ownership stake in their business, which is why all the companies we partner with have meaningful management incentive equity programs.

Family Succession

Family-owned businesses regularly have multiple generations involved in the company. In many cases, the business reaches a transition stage where the founder and the next generation managers have different goals and objectives. Keswick has significant experience helping businesses manage the transition of company ownership from one generation to another. Family successions assist the older generation in monetizing the value of their business while simultaneously creating ownership opportunities for the younger generation to accumulate significant wealth through participation in the company’s future success. When the time comes for necessary estate planning, Keswick can offer effective alternatives to diversify an owner’s net worth and transfer wealth to the next generation in a tailored and tax-efficient manner.