INVESTMENT PHILOSOPHY

Kodiak creates value by employing the following investment evaluation process:

Focus on Growth

Kodiak focuses on investments in companies in which there is demonstrable revenue growth potential driven by compelling economic, demographic, or industry trends or company-specific characteristics. In particular, Kodiak seeks opportunities in which there is significant, untapped value in the company’s intangibles, such as its brands or systems.

Deal Structure Creativity

Kodiak seeks non-control investments by purchasing a broad range of securities and employing a broad range of capital structures, depending on the opportunity. The firm focuses on investing not only in traditional non-control recapitalizations but also in growth equity investments and convertible debt situations.

Opportunity in Inefficient Markets

Kodiak will often invest in attractive situations caused by market dislocations. To do so, the firm:

  • Focuses on the lower-middle-market, which tends to have less mature companies that can benefit from our experience and attention to systems and controls;
  • Seeks opportunities in complex industries and companies, which require the type of careful due diligence and structuring that the principals have conducted in the past;
  • Identifies out-of-favor sectors, asset classes, and industries, which have attractive long-term growth characteristics but have been neglected; and
  • Draws on the principals’ proprietary deal flow, which is derived from the principals’ network of relationships with corporate executives, lower-middle-market financial intermediaries, and advisors.

Value-Added Investor

Kodiak seeks to invest in companies that share similar characteristics with those in which it has invested previously, so that it can leverage its experience and relationships to accelerate growth. This strategy includes seeking investments in industries such as biotechnology, consumer products, life sciences, natural resources and social media technology.