An Innovative Approach

Creating True Partnerships Focused on Growth

Kirenaga takes a decidedly different approach to investing than most other venture capital/private equity firms. In essence, we look at our investments through the eyes of “business owners”, not asset traders. That manifests itself in two distinct ways:

  1. Our initial investment decisions are predicated on our belief that the value of the company can grow substantially during our period of ownership (and that we will not just reap the benefits of an initial mispriced transaction), and
  2. We creatively structure our investments and working arrangements with our portfolio companies to ensure sufficient cash flows along the way, both at the company level and the investor level. This allows us to pay cash dividends to our investors on an asset class that rarely has any current return.

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Building Profitable Businesses

We are dedicated to efficiently allocating our investor capital to help businesses build a solid foundation of operations.

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Active Management is Key

Because we actively partner with the management teams of our portfolio companies, we are constantly monitoring and assessing their progress and influencing direction, as appropriate.

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Commitment to Excellence

Through our partnership approach, we are fully dedicated to helping business owners and entrepreneurs achieve their desired success, while simultaneously providing a substantial return to our investors.

What We Look For
  • Privately-owned, lower middle-market companies that typically have less than $25mn in annual revenues (nearly 1.3mn companies this size in the United States alone)
  • Good business models and strategic assets
  • Tremendous growth potential – the company value can increase 10x within 5 years
  • Insufficient management depth to fully execute their business plan
  • Inability to access traditional sources of capital, which impairs their ability to grow substantially
How We Can Help
  • We can help overcome capital challenges
  • We can address management issues and help attract/retain the right management team
  • We can offer our operational expertise and network of strategic partners
  • We will creatively structure transactions to provide the best outcomes for all stakeholders
Integrity

Kirenaga only invests in companies that operate with the highest level of integrity, and we are appropriately thoughtful about the environmental, social and governance issues relevant to their particular businesses.

Potential

We focus primarily on Stage 2 Growth companies (<$25 million in revenue) where the business model is reasonably established, and where there is 10x valuation growth potential with the appropriate investment capital and management expertise.

Partnership

We help manage companies as a long-term owner would, not only to deliver growth over time, but also to ensure that an appropriate "living wage" be paid to all the relevant stakeholders along the way – management (salaries), broad employee base (wage rates), and investors (dividends and appreciation).

Discipline

We operate within four key criteria: