Asset Management

The Kirchner team did an excellent job taking over a declining situation, turning things around and managing the portfolio to its successful completion. It is comforting to know that this resource exists for investors and managers seeking to get portfolios back on track

Gaetan LussierChairmanForagen Technologies Management Board

We manage assets for some of the largest insurance companies, commercial banks and institutional investors in the world. We also manage our own proprietary funds.

Kirchner Group is active in in three aspects of asset management, Fund Formation, Fund Management and Fund Advisory.

Our Fund Management Experience:
Kirchner Group Asset Management Map 2015

Our unique combination of operational, fund management and transactional experience provides a basis for assisting Investors achieve their investment objectives. We offer services to a variety of funds including diversified, sector specific, regional and government managed investment funds. We also work with family offices and institutional investors. We take great pride in providing a combination of flexibility and responsiveness, operating with the expectation of a long-term relationship and working within a structure where our economic interests are aligned with our clients and investment partners.

Our unique value proposition is enhanced through the collective experience of our team, which is composed of professionals possessing backgrounds as entrepreneurs, operators, fund managers, and transaction specialists. Our professionals bring a diversity of talent, assembling the right mix of individuals for Investors’ specific needs, whether it is fund co-management, developing an investment program, or implementing best practices. We also have deep experience in all facets of intellectual property.

Fund Formation

In our capacity as corporate GP we work with strategic partners to form specialized venture capital funds.

Depending on the circumstances we work with partners in various contexts.

Fund Structures
We have deep knowledge around fund structures from our years of experience in the private equity world. We have expertise in the development of Business Models, Investment Models and Fund Models.

Mechanisms of Investments
We are intimately involved with the mechanisms of investments including but not limited to the Offering Memorandum, Limited Partnership Agreement, Subscription Agreement and Investor Questionnaire.

Regulatory Framework
We have a deep understanding of the basic regulatory framework required when forming a fund and we are also familiar with many other regulatory issues that can arise during the formation of a fund.

Marketing
We have established expertise in the preparation of marketing materials required when forming a fund including, creating and launching a website, developing pitch documents, and structuring and building an electronic data room.
Our highly experienced team can help with almost all aspects of fund formation.

Fund Advisory

Kirchner Group works with best-in-breed emerging fund managers who share our values, and who are positioned to dominate their respective niches by leveraging our platform. Kirchner acts as a Co-GP to funds and provides access to the firm’s domain and process expertise as well as our extensive global network.

Fund Management

We provide discretionary and non-discretionary management services for Investors choosing not to directly manage a portion of their investment portfolio. This can be done for any combination of fund investment, direct investment, or co-investment programs.

We develop a customized investment program in close collaboration with each Investor to ensure programs are tailored to specific objectives. This flexibility is essential to take into account each Investor’s sensitivity to risk tolerances, investment goals, and business considerations. Alignment of interest is ensured through a risk sharing compensation structure.

Kirchner actively manages capital as a General Partner of venture capital and private equity investment funds on behalf of their limited partners. Our services include replacement GP or supplemental GP, management of remnant funds, managing funds after their investment phase to improve fund performance and liquidity, management of funds with inherent issues and management of distributed private securities.

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Asset Management Tombstones

Buyout Fund (Unnamed)
Buyout Fund (Unnamed) Portfolio Manager
Middle market buyout fund
Kirchner Group provides outsourced investment advisory, fund formation and fund management services.
Food Security Group
Food Security Group
Launched to address the emerging global need for funding to support companies that are helping to solve current worldwide food security issues
Kirchner Group provides outsourced investment advisory, fund formation and fund management services.
Top 10 North American Financial Services Firm
Top 10 North American Financial Services Firm
Review of existing private equity program. Outsourced due diligence. Assessment of an underperforming fund investment
Kirchner Group provides outsourced investment advisory, fund formation and fund management services.
View All Kirchner Group Tombstones

 

Asset Management Case Studies

$300 million fund-of-funds

Background

KIMC’s client was a $300 million fund-of-funds group within a Top 10 North American financial services firm requiring multiple services on short-notice and within tight timeframes.

Engagement

Over a six month period, KIMC assisted in providing outsourced due diligence services. KIMC evaluated and provided an investment recommendation for a fund investment opportunity. This included:

  • An analysis of past performance at a company-by-company portfolio level
  • Interviews with the General Partners
  • Supplied and non-supplied third party reference calls
  • Review of the fund’s legal agreements

The final recommendation was provided in a format conforming to the client’s investment recommendation process and procedures.

Assessing an underperforming fund investment situation.

  • At the request of the Limited Partners, and with the cooperation from the fund investment in question, KIMC provided an in-depth, unbiased review of the General Partner (GP) and its fund.
  • KIMC’s assessment included an evaluation of the GP’s skills and capabilities, performance and exit probabilities of each portfolio company, and an analysis of the existing legal agreements to determine the options available to the fund’s Limited Partners (LP). KIMC then presented the findings, options and recommendations to the LP Advisory Board.
  • Subsequently KIMC was hired as a supplementary GP to manage out the fund’s life. In its first 12 months, KIMC restructured the fund management, reduced operating expenses and follow-on financing requirements, provided strategic support and sourced fresh capital for identified portfolio companies with high prospects, and generated liquidity event exits within the portfolio.

Reviewing the existing private equity program.

  • KIMC worked closely with the client to review their existing internal processes and procedures, actively participating in strategy sessions and program development.
  • As a result, monitoring protocols and reporting templates were updated to conform to current industry best practices.

Summary of Value Add

  • Flexible and responsive to short-term needs
  • A trusted independent expert that can create consensus in difficult situations (a catalyst for change)
  • Supplementary GP for a venture capital fund’s post-investment period
  • Ability to work both collaboratively and independently of the client team and funds under review
  • Implementation of fund management best practices
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View All Kirchner Group Case Studies