Kohlberg typically makes investments in middle-market companies with enterprise values between $100 million and $750 million. The Firm works with senior management to identify situations in which it can undertake exhaustive due diligence in order to understand fully the business fundamentals, identify any strategic risks and quantify opportunities for increasing revenue and profitability.

The Firm’s primary focus to date has been on traditional manufacturing and service companies. While a hallmark of Kohlberg’s history is the ability to be nimble and opportunistic when attractive opportunities arise, the Firm has developed particular sourcing and execution expertise within three industry categories: Industrial Manufacturing; Consumer Products; and Services (Business Services, Healthcare Services and Financial Services). Since the Firm’s inception, Industrial Manufacturing investments have comprised 47% of platform investments, with Consumer Products (19%) and Services (34%) accounting for the balance. Historically, Kohlberg has not invested in companies that are in sectors such as technology and emerging telecommunications. The Firm believes that established companies with recognized industrial or consumer brands and sizable market shares offer attractive platforms for long-term growth and profit optimization. The Firm also seeks companies where an equity infusion can reduce excessive leverage that is inhibiting operations and limiting growth.

Kohlberg investments are also characterized by their transaction type – historically 70% of the Firm’s investments have been in corporate divisional carve-outs (45%) or public-to-private buyout transactions (25%). The Firm’s reputation and track record increasingly make it the partner of choice for corporate sellers looking to divest non-core assets. Kohlberg’s experience with the complexities of carving out embedded assets from corporate parents, often involving the structuring of multiple supply and transition agreements to replicate vital existing business relationships between parent and subsidiary, distinguishes the firm from other competitors. Kohlberg’s experience working with public company boards, special committees and multiple stakeholders position it favorably as a partner who brings the acumen necessary to complete complex transactions. Over its last three Funds, Kohlberg has completed seven public-to-private buyout transactions, each requiring unique skills resident within the firm to complete.