Kohlberg & Company
Encyclopedia
Kohlberg & Company is a private equity
firm that focuses on leveraged buyout
transactions founded by industry pioneer Jerome Kohlberg, Jr.
Today, the firm invests in a variety of transactions including leveraged carveouts (buyouts of divisions from larger companies), take private transactions and acquisitions of privately held companies. The firm, focuses on companies facing operational or financial challenges, particularly middle-market companies. As of the end of 2007, Kohlberg & Company had raised six private equity fund
s since its inception, with approximately $3.7 billion of investor commitments. Kohlberg's previous funds totalled $306 million (1988), $165 million (1994), $320 million (1997), $576 million (2000) and $800 million (2004), respectively.
Additionally, Kohlberg also operates a series of debt investment funds under the banner of Katonah Debt Advisors, which it founded in 2000 as Katonah Capital. As of the end of 2007, Katonah Capital, and its successor, Katonah Debt Advisors had raised approximately $3.5 billion through 9 collateralized debt obligation
funds. In 2006, the firm completed an initial public offering
for Kohlberg Capital Corporation to provide senior debt and mezzanine financing.
Kohlberg has approximately 25 investment professionals based in Mt. Kisco, New York, New York City
, and Palo Alto, California
.
resigned from Kohlberg Kravis Roberts & Co. over differences in strategy. Kohlberg did not favor the larger buyouts (including Beatrice Companies
(1985) and Safeway
(1986) ), highly leveraged
transactions or hostile takeovers being pursued increasingly by KKR., typified by their 1989 takeover of RJR Nabisco
. Instead, Kohlberg chose to return to his roots, acquiring smaller, middle-market companies, and in 1987 he formed a new private equity firm Kohlberg & Company along with his son James, at that time a KKR executive. Their intent was to concentrate on transactions that could generate returns through revenue growth and operating improvements using only moderate leverage
.
Jerome Kohlberg
retired from Kohlberg & Company in 1994.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm that focuses on leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
transactions founded by industry pioneer Jerome Kohlberg, Jr.
Jerome Kohlberg, Jr.
Jerome Kohlberg, Jr. is an American businessman and early pioneer in the private equity and leveraged buyout industries founding private equity firm Kohlberg Kravis Roberts & Co. and later Kohlberg & Company....
Today, the firm invests in a variety of transactions including leveraged carveouts (buyouts of divisions from larger companies), take private transactions and acquisitions of privately held companies. The firm, focuses on companies facing operational or financial challenges, particularly middle-market companies. As of the end of 2007, Kohlberg & Company had raised six private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
s since its inception, with approximately $3.7 billion of investor commitments. Kohlberg's previous funds totalled $306 million (1988), $165 million (1994), $320 million (1997), $576 million (2000) and $800 million (2004), respectively.
Additionally, Kohlberg also operates a series of debt investment funds under the banner of Katonah Debt Advisors, which it founded in 2000 as Katonah Capital. As of the end of 2007, Katonah Capital, and its successor, Katonah Debt Advisors had raised approximately $3.5 billion through 9 collateralized debt obligation
Collateralized debt obligation
Collateralized debt obligations are a type of structured asset-backed security with multiple "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. Each tranche offers a varying degree of risk and return so as to meet investor demand...
funds. In 2006, the firm completed an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
for Kohlberg Capital Corporation to provide senior debt and mezzanine financing.
Kohlberg has approximately 25 investment professionals based in Mt. Kisco, New York, New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, and Palo Alto, California
Palo Alto, California
Palo Alto is a California charter city located in the northwest corner of Santa Clara County, in the San Francisco Bay Area of California, United States. The city shares its borders with East Palo Alto, Mountain View, Los Altos, Los Altos Hills, Stanford, Portola Valley, and Menlo Park. It is...
.
History
The firm was founded in 1987, when Jerome Kohlberg, Jr.Jerome Kohlberg, Jr.
Jerome Kohlberg, Jr. is an American businessman and early pioneer in the private equity and leveraged buyout industries founding private equity firm Kohlberg Kravis Roberts & Co. and later Kohlberg & Company....
resigned from Kohlberg Kravis Roberts & Co. over differences in strategy. Kohlberg did not favor the larger buyouts (including Beatrice Companies
Beatrice Foods
Beatrice Foods Company was a major American food processing company. In 1987, its smaller international food operations were sold to Reginald Lewis, a corporate attorney creating TLC Beatrice International, after which the majority of its domestic brands and assets were acquired by Kohlberg,...
(1985) and Safeway
Safeway Inc.
Safeway Inc. , a Fortune 500 company, is North America's second largest supermarket chain after The Kroger Co., with, as of December 2010, 1,694 stores located throughout the western and central United States and western Canada. It also operates some stores in the Mid-Atlantic region of the Eastern...
(1986) ), highly leveraged
Leverage (finance)
In finance, leverage is a general term for any technique to multiply gains and losses. Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives. Important examples are:* A public corporation may leverage its equity by borrowing money...
transactions or hostile takeovers being pursued increasingly by KKR., typified by their 1989 takeover of RJR Nabisco
RJR Nabisco
RJR Nabisco, Inc., was an American conglomerate formed in 1985 by the merger of Nabisco Brands and R.J. Reynolds Tobacco Company. RJR Nabisco was purchased in 1988 by Kohlberg Kravis Roberts & Co...
. Instead, Kohlberg chose to return to his roots, acquiring smaller, middle-market companies, and in 1987 he formed a new private equity firm Kohlberg & Company along with his son James, at that time a KKR executive. Their intent was to concentrate on transactions that could generate returns through revenue growth and operating improvements using only moderate leverage
Leverage (finance)
In finance, leverage is a general term for any technique to multiply gains and losses. Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives. Important examples are:* A public corporation may leverage its equity by borrowing money...
.
Jerome Kohlberg
Jerome Kohlberg, Jr.
Jerome Kohlberg, Jr. is an American businessman and early pioneer in the private equity and leveraged buyout industries founding private equity firm Kohlberg Kravis Roberts & Co. and later Kohlberg & Company....
retired from Kohlberg & Company in 1994.
Selected Portfolio
- Bauer HockeyBauer HockeyBauer Performance Sports Ltd. is one of the leading manufacturers of ice hockey equipment, fitness and recreational skates, and apparel. Bauer produces helmets, gloves, sticks, skates, shin guards, pants, shoulder pads, elbow pads, as well as goalie equipment...
- CenterplateCenterplateCenterplate, Inc. is a food vending corporation in Spartanburg, SC that operates in North America, primarily at sports arenas.Centerplate was formerly known as Volume Services America, Inc., and was originally a division of The Flagstar Companies. In 1995, Flagstar, which was controlled by private...
- Central Parking CorporationCentral Parking CorporationCentral Parking Corporation, based in Nashville, Tennessee is the world's largest parking services provider, operating approximately 3,000 parking facilities containing more than 1,000,000 parking spaces....
- Katy IndustriesKaty IndustriesKaty Industries, Inc. is the current ultimate holding company of a group of undertakings whose operations are divided between two groups: maintenance products and electrical products. The main business of the former group is the manufacture and distribution of commercial cleaning products. It also...
- SVP WorldwideSVP WorldwideSVP Worldwide is a company that designs, manufactures, and distributes consumer sewing machines and accessories around the world under 3 brands: Singer, Husqvarna Viking, and Pfaff. SVP was the result of an acquisition of the Swedish VSM Group, which included the Husqvarna Viking and Pfaff brands,...
- Thomas NelsonThomas Nelson (publisher)Thomas Nelson is a publishing firm that began in Scotland in 1798 as the namesake of its founder. Its former US division is currently the sixth largest American trade publisher and the world's largest Christian publisher. It is owned by the private equity firm Kohlberg & Company...
- TricoTricoTrico is an American company that specializes in windshield wipers. Trico, then Tri-Continental Corporation, invented the windshield wiper blade in 1917. Its original Trico Plant No. 1 is listed on the National Register of Historic Places....
External links
- Kohlberg & Company (company website)
- Katonah Debt Advisors (company website)
- Kohlberg Capital Corporation (company website)