Value Creation with KKR CapstoneLearn how KKR Capstone works alongside KKR’s investment professionals and portfolio companies to drive value for investors. December 2018.
KKR Capstone's Mission
KKR Capstone is an integral part of the overall firm’s approach to value creation. KKR Capstone’s core mission is to create value for all of our stakeholders by identifying and delivering sustainable operational performance within KKR portfolio companies. In support of this mission, KKR Capstone value creation activities are focused on three fundamental areas:
- Assessing operational improvement opportunities and risks during the due diligence process
- Delivering meaningful and sustainable operational change within the portfolio companies
- Leveraging the scale and scope of the KKR portfolio to develop cross-portfolio programs that can benefit all investments
As of September 30, 2018, KKR Capstone is a team of approximately 60 full-time operating professionals dedicated to supporting KKR deal teams and portfolio companies. It is one of the largest and most experienced operations firms within the alternative investment community. With offices in the Americas, Asia and Europe, KKR Capstone has the capacity, capability, and scale to support complex, global businesses.
KKR Capstone Capabilities
KKR Capstone Approach
KKR Capstone teams are involved with KKR’s portfolio company investments through the entire life cycle of the asset. KKR Capstone professionals work closely with investment teams during due diligence to identify operational value creation opportunities and then support boards and management teams to develop 100 day value creation plans. Once the operational priorities are set, KKR Capstone teams deploy in partnership with management to support major transformational changes within portfolio companies.
The global KKR Capstone team targets improvements in both the income statement and balance sheet. KKR Capstone projects are balanced between driving top-line growth, improving organizational efficiency, and optimizing capital productivity. Given the size and experience of the KKR Capstone team, it has the capability to support portfolio companies across a very broad range of industries and functional areas. Additionally, KKR Capstone has professionals dedicated to creating and managing cross portfolio programs – such as a shared procurement program – that are made available to all portfolio companies and provide fast-acting impact.
KKR Capstone is focused on delivering results, not recommendations. With a “hands on, sleeves rolled up” approach, KKR Capstone teams drive value creation initiatives from strategy setting to frontline implementation. To build programs that deliver long term, sustainable improvement, KKR Capstone teams focus extensively with management teams on capability building and skill transfer back into the portfolio company.
For more than a decade, KKR Capstone has been an integral part of the overall KKR approach to value creation. KKR Capstone professionals have a strong track record of working hand in hand with investment professionals and management teams around the shared goal of building stronger businesses through transformational and sustained operational improvements.
KKR and KKR Capstone work closely together on behalf of KKR’s 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.