We partner with entrepreneurs of growth stage enterprise software and technology-enabled companies across North America in the lower-middle market
Growth Equity
Kayne Partners invests in growth stage enterprise software and technology-enabled companies
We have an appreciation for nimble and innovative founders that blaze their own trail and understand the unique challenges entrepreneurs and management teams face in scaling their businesses. A strong management team is the foundation of a successful growth business.
We partner with these high-growth software companies that have reached an inflection point where an infusion of capital and the right partner can have a profound impact on helping them achieve their growth plans
We are flexible in how we structure our capital and mindful of what makes the most sense for the business and management team. Our deep industry knowledge and experience enables us to support our management teams with a best-in-class approach to facilitate rapid scaling through experienced Board involvement, auxiliary corporate development support, and a network of operators and vendors.
Strategy
We look to partner with experienced and motivated entrepreneurs that have strong conviction in their businesses and built companies with clear competitive advantages, shown an efficient use of capital, and share attractive investment characteristics.
We have established expertise supporting companies at this stage of growth, which has led to successful exits to leading strategics, larger financial sponsors, and IPOs/SPACs
Investment Criteria
- North America lower-middle market
- $10 – $75 million initial investments
- Minority and control positions
- Primary and secondary positions
Company Profile
- $10 – 75M+ million revenue ($8 million + recurring)
- 20%+ annual growth
- Attractive and sustainable margins
- EBITDA+ or path to profitability
- Seasoned management with meaningful ownership
- Measureable ROI
- World class customers
Structure
- Preferred equity
- Debt with warrants
- Convertible Debt
- Common
Target Industries
Supply Chain &
Logistics
Media & Telecom
Business Process
Automation
Financial
Technology
Healthcare
Security &
Compliance
Transformative Capital: Why Us?
The Firm Behind the Fund
We are an active partner bringing Kayne’s large firm capabilities to the lower middle market of technology investing contributing to the accelerated growth of some of the most innovating, high-growth software companies.
We access these companies through our direct sourcing engine, underwrite through deep industry expertise and specific investment stage knowledge, and bring our Firm’s significant resources to help drive value creation
Experienced Investors
We are investors and partners, offering an established platform to accelerate the growth path of portfolio companies and help businesses realize their aspirations.
Our entrepreneurs are accomplished leaders. They look to us for our unique industry knowledge and perspective, strategic guidance, unique set of resources, and successful track record of building lower middle market growth companies into must-have assets for strategic and financial buyers and maximizing value at exit.
Patient, Flexible Capital
We offer flexibility as to transaction type and investment structure and take a more patient view than other investors. We tailor our investments to the unique situation of each company, rather than applying a one-size-fits-all strategy. We have done minority and majority transactions in preferred equity and debt structures and have the ability to stage our investments, increasing our commitment as the company scales. We are also open to partnering with other investors who bring strategic value.
We believe value is maximized when we are aligned with an entrepreneur, including meaningful equity for management. We advise our companies to take the right amount of capital to achieve the greatest impact.
Value-Add Capital
Entrepreneurs face similar challenges regardless of the end-markets they target and these phases of growth tend to be consistent as the revenues of the company continue to grow.
Kayne Partners experience across 40+ portfolio companies has enabled the team to develop consistent processes to add value through key hires, resource and product enhancements, infrastructure and scalable operational processes, capital formation planning and corporate development support.
Portfolio Investments
Exited
3cinteractive – Enterprise Mobile Communications
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3cinteractive – Enterprise Mobile Communications
Founded in 2015, 3C provides software that allows large companies to communicate with their customers via mobile devices. Leveraging 3C’s expertise connecting mobile to business results and its SwitchbladeTM platforms multichannel capabilities – including SMS and MMS messaging, mobile coupons, mobile wallet, mobile web, location based services and more – marketers can deliver timely, relevant engagement at the consumers’ moment of need.
Status: Exited
Location: Boca Raton, FL
Initial Investment: 2011
Industry: Media & Telecom
Exit Press Release
KPF Board Member: David Walsh
Exited
4C Insights – TV and Social Media Technology
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4C Insights – TV and Social Media Technology
Founded in 2013, 4C Insights is a technology platform that enables customers to advertise to consumers, whether the consumer is watching TV, looking at their mobile phone/tablet, or doing both at the same time.
Status: Exited
Location: Chicago, IL
Initial Investment: 2016
Industry: Media & Telecom
Exit Press Release
KPF Board Member: Leon Chen
KPF Board Member: Nate Locke
Exited
Andover – Medical Tapes Manufacturer
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Andover – Medical Tapes Manufacturer
Founded in 1976, Andover Healthcare is a manufacturer of cohesive bandages, wound care dressings, and medical tapes for the healthcare, veterinary, and sports medicine markets.
Status: Exited
Location: Salsbury, MA
Initial Investment: 2012
Industry: Healthcare
Exit Press Release
KPF Board Member: Terry Quinn
Exited
Coldlight – Big Data and Predictive Analytics
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Coldlight – Big Data and Predictive Analytics
Founded in 2006, ColdLight is a cloud-based data analytics platform used by telecommunications and healthcare companies to help predict business outcomes. ColdLight analyzes massive amounts of data to predict future trends, improve efficiency, and optimize business decision making.
Status: Exited
Location: Wayne, PA
Initial Investment: 2013
Industry: Media & Telecom
Exit Press Release
KPF Board Member: Nishita Cummings
Board Observer: Rob Shilton
Exited
Consero – Outsourced Financial and Accounting Solutions
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Consero – Outsourced Financial and Accounting Solutions
Founded in 2006, Consero provides finance and accounting (“F&A”) outsourced services to small and medium sized businesses, targeting companies with $0.5M-$50.0M in revenue. Consero’s services and integrated third party software applications help customers address complex finance requirements, scale operations, and reduce F&A expenses by up to 30% to 40%.
Status: Exited
Location: Boca Raton, FL
Initial Investment: 2015
Industry: Business Process Automation
Exit Press Release
KPF Board Member: Leon Chen Board Observer: Rob Shilton
Exited
Conservice – Utility Billing Systems for Multifamily Housing
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Conservice – Utility Billing Systems for Multifamily Housing
Founded in 2001, Conservice is a utility and billing management company that provides software and service solutions for the rental housing industry in North America. The company focuses its efforts on properties such as student housing, apartment complexes, military housing, and multi-family dwellings. Conservice’s solutions enable multi-family owners and managers to enhance property values, encourage conservation, and reduce operating costs.
Status: Exited
Location: Logan, UT
Initial Investment: 2012
Industry: Financial Technology
Board Observer: Nishita Cummings
