PRIVATE EQUITY

The Kingsbarn Difference

The Kingsbarn Independent Sponsor Equity (“ISE”) Fund is the latest addition to the firm’s alternative investment platform. As market dynamics continue to shift, the private equity team at Kingsbarn has recognized an opportunity to take advantage of the silver tsunami of retiring business owners, specifically in the lower middle market. Kingsbarn seeks to create a diversified portfolio of operating companies across multiple industries and geographic markets to provide outsized returns.


Kingsbarn’s private equity team partners with management teams and independent sponsors across the US and Canada by providing the “last mile” of equity to help complete the sources of financing for each transaction.  This investment approach has already generated significant interest and deal flow from the market at large with equity deployments generally ranging from $2-10 million per investment.

The Silver Tsunami


Baby boomers own over 50% of all privately held businesses in the United States.
Roughly 500 businesses each day will be either changing hands or shutting down.
This Silver Tsunami of retiring business owners own over 2.9M businesses.
These businesses are the heart of the U.S. economy and employ over 32M workers and generate nearly 6.5T in revenue.

- Census 2018 Annual Business Survey (Data from 2017)

Why invest in the lower middle market?

Financially Opportunistic


Larger businesses (greater than $5M EBITDA) typically trade at higher multiples which reduces the return profile to investors.

Acquisition multiples for companies under $5mm EBITDA are much lower, providing multiple arbitrage opportunity when EBITDA growth is achieved.

This creates a form of double return for investors – increase in profits and higher exit multiple – significantly increasing the IRR.

Value Creation


Easily implemented systems and processes that immediately create unrealized value in a small business.

I. Operational Best Practices


  • Inventory controls
  • Utilization tracking and analysis
  • Automation / human
    capital efficiencies

II. Financial Best Practices


  • Capex ROI tracking
  • Cash forecasting / budgeting
  • ERP / financial software integration

FUND DETAILS

Issuer
Kingsbarn Independent Sponsor Equity Fund, LP
Minimum Investment
$250,000
Eligible Investors
Accredited Investors & Qualified Clients
Fund Administration
Apex Group, Ltd.
Fund Auditor
BBD, LLP
Legal
Carman Lehnhof Israelsen, LLP
Reporting
Monthly Financials
Quarterly Reports
IRA Eligibility
Yes
Management Fee
2%
Performance Fee
20%
LP Preferred Return
8%