KPS Capital Partners

KPS Capital Partners is an American investment company that manages KPS Special Situation Funds that in turn controls private equity limited funds.

KPS Capital Partners
TypePrivate
IndustryPrivate Equity
Founded1991[1]
HeadquartersNew York, New York
Key people
Michael Psaros, David Shapiro, Raquel Palmer, Jay Bernstein
ProductsLeveraged buyout
Total assets$5.7 billion
Websitewww.kpsfund.com

Operations

The company was founded in 1991 by Eugene Keilin, Michael Psaros, and David Shapiro, hence the KPS name.[2]

The firm is not a hedge fund, instead, it tries to make money by making controlling investments in companies that experience a period of transition or need to make changes. KPS indicates that has been able to acquire non-core or divested assets from large corporations and turn them around into profitable entities that could be sold. Headquartered in New York City, as of the end of 2014, KPS was managing over $5.7 billion of assets and controlled companies that employ more than 47,000 people in 26 countries.[3]

The Financial Times noted that, while private equity firms often have a bad reputation for stripping assets and slashing jobs when buying distressed companies, KPS has established a reputation for constructive relationships with the workforce and their unions.[4] In 2009, Psaros estimated that he had saved about 20,000 jobs.[4] Unions also have appreciated that KPS uses little or no debt in its deals and have called in KPS to save companies.[4]

On May 6, 2019, KPS Capital Partners signed an agreement with Brunswick Corporation to purchase its fitness business valued at $490 million in an all cash transaction.[5]

On July 22, 2020, KPS Capital Partners announced an agreement to acquire AM General through a newly formed affiliate.[6] The financial arrangements for this deal were not made known.[6] The purchase of AM General was completed on October 1, 2020.[7]

Business units

The following (incomplete) list includes major companies that are or had been controlled by KPS:[3]

Notes
  1. Bloomberg Business Company Snapshot
  2. Boselovic, Len (February 16, 2014). "Heard Off the Street: Psaros based his career on a bold experiment". Pittsburgh Post-Gazette. Retrieved February 12, 2015.
  3. "Private Equity Firm, Manufacturing". KPS Capital Partners. 2014.
  4. Arnold, Martin (March 26, 2009). "The friendly barbarian". Financial Times. Retrieved February 13, 2015.
  5. "Brunswick Announces Sale of Fitness Business". Brunswick Corporation. Retrieved 2019-05-06.
  6. "KPS Capital Partners To Acquire AM General LLC". amgeneral.com (Press release). July 22, 2020. Retrieved January 9, 2021.
  7. "KPS Capital Partners, LP Completes Acquisition of AM General". AM General. October 1, 2020. Retrieved January 9, 2021.
  8. "TaylorMade Golf sold for $425 million to KPS Capital Partners LP". Golf. May 10, 2017.
  9. Gould, Joe (August 13, 2020). "AM General CEO on acquisition by a private equity firm". Defensenews. Retrieved February 5, 2021.
  10. "Briggs & Stratton enters into $550M sales agreement with KPS Capital, files Chapter 11 reorganization". The Business Journals. July 20, 2020.
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