Birmingham, AL and Montreal, QC– 09 September 2019 – Kirchner Group is pleased to announce several recent engagements reflecting the spectrum of value creation roles that the firm has developed in response to market trends in the institutional private equity and venture capital industries.
Kirchner has been deploying its model across a series of portfolios ranging from early stage venture to mid-market buyout since 2004. The firm has created significant value in over twelve funds, including more than 150 companies around the world – in a spectrum of roles including: Assessments – LP Advisor – LPAC Advisor – Co-GP – Successor GP. In the words of a financial news reporter, “Kirchner takes on lagging portfolios giving limited partners a ‘third option’.”
Kirchner Group has been engaged in the context of its portfolio optimization services to serve as General Partner for a $100 million VC fund backed by an impressive group of well-established fund-of-fund investors. Consistent with the broader Kirchner Group platform, the fund’s companies have significant global importance but need the kind of hands-on investment and operational expertise that Kirchner Group brings in order to reach their potential. One longtime client and President and Chief Executive Officer of a private equity investment specialist commented:
“Kirchner’s pattern recognition and ability to provide actionable opportunities for our portfolio companies was invaluable.”
Kirchner Group has assumed a management role alongside an original GP in a $131 million PE portfolio that was in a precarious position, having already experienced an erosion of approximately 70% of the invested capital in the fund in its first 24 months. Lenders were expressing deep concerns about covenant breaches and the overall liquidity of the portfolio. Since the start of the Co-GP engagement, the NAV of the fund has increased by 2.7x and is now on track to produce an overall positive investment outcome for the LPs which is well beyond mere recovery of value. Kirchner has completed and integrated another highly accretive acquisition for one of the portfolio companies and sufficient exits have been undertaken to both substantially lower the overall debt level of the portfolio as well as allow for distributions to LPs. A LPAC Chairman from a similar situation commented:
“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.”
Kirchner Group also recently completed a top-to-bottom operationally-based Portfolio Assessment of a $500 million U.S.-based private equity fund, providing the lead LP with a comprehensive, independent review of the portfolio. The Portfolio Assessment rapidly provided key insights regarding fund management, portfolio status, and actionable go-forward options. As a Managing Director of one of the largest secondaries in the world and longtime client previously observed:
“I was very impressed by Kirchner Group’s unique approach to portfolio assessment. Their protocols resulted in additional insights and opportunities not apparent in audited financial statement.”