An important part of achieving operational excellence in KKR’s portfolio companies is KKR CAPSTONE, a team of operating executives across North America, Europe, and Asia, available exclusively to KKR and KKR’s private equity portfolio companies as well as KKR’s infrastructure and special situations investments. KKR Capstone’s core mission is to create value for all stakeholders by identifying and delivering sustainable operational performance improvement; projects are balanced between driving top-line growth, improving organizational efficiency and optimizing capital productivity. Delivering on this requires expertise across a host of functional disciplines like marketing and pricing optimization, organizational design, sales force effectiveness, Lean Six Sigma and energy efficiency.
KKR Capstone Portfolio Involvement and Value Creation
The team generates results through industry experience and deep functional expertise.
- Sales force effectiveness
- New product innovation
- Sourcing/supply chain
- Working capital
- IT optimization
Core Business Processes
- Operating metrics and reporting
- Corporate carve-outs
- Distressed and turnarounds
- Organizational design and talent assessment
- Lean Six Sigma
KKR Capstone supports KKR’s portfolio companies by helping execute a differentiated and impactful set of cross-portfolio projects, including:
- Indirect sourcing
- Corporate insurance and risk management
- Metrics management
- Centralized IT contracting
- Environmental sustainability
KKR Capstone Approach
Company managers who choose to work with KKR Capstone find that KKR Capstone teams approach everything with a “hands-on, sleeves-up” approach, executing key operational objectives that are identified by company boards and CEOs. KKR Capstone projects occur throughout the entire life cycle of an investment: starting with due diligence, when they help identify key value-creation operational initiatives, to developing 100-day plans for realizing these improvements, through on-the-ground execution of these initiatives. Building businesses for the long-term, KKR Capstone emphasizes implementation and sustainable improvement.
Since its formation in 2000, KKR Capstone has established a track record of helping make good businesses better. This distinctive operating approach and team have created significant and measurable value for KKR and KKR’s investors.
KKR and KKR Capstone work closely together on behalf of KKR’s private equity portfolio companies and investments; however, KKR Capstone is not a subsidiary or an affiliate of KKR and uses the “KKR” name under license. KKR Capstone is owned and controlled by its senior management. References to KKR Capstone operating executives are to employees of KKR Capstone and not to employees of KKR.