We manage assets for some of the largest insurance companies, commercial banks and institutional investors in the world.
Kirchner Group provides tailored venture capital and private equity investment management and advisory services.
Kirchner Group is active in four aspects of asset management – Fund Formation, Fund Management, Fund Advisory and management of strategic spin-outs.
Our unique combination of operational, fund management and transactional experience provides a basis for assisting Investors achieve their investment objectives. We offer services to a variety of funds including diversified, sector specific, regional and government managed investment funds. We also work with family offices and institutional investors. We take great pride in providing a combination of flexibility and responsiveness, operating with the expectation of a long-term relationship and working within a structure where our economic interests are aligned with our clients and investment partners.
Our unique value proposition is enhanced through the collective experience of our team, which is composed of professionals possessing backgrounds as entrepreneurs, operators, fund managers, and transaction specialists. Our professionals bring a diversity of talent, assembling the right mix of individuals for Investors’ specific needs, whether it is fund co-management, developing an investment program, or implementing best practices. We also have deep experience in all facets of intellectual property.
Fund Formation
In our capacity as corporate GP we work with strategic partners to form specialized venture capital funds.
Depending on the circumstances, we work with partners in various contexts such as Fund Structures, Mechanisms of Investments, Regulatory Framework and Marketing. Our highly experienced team can help with almost all aspects of fund formation.
Fund Advisory
Kirchner Group works with best-in-breed emerging fund managers who share our values, and who are positioned to dominate their respective niches by leveraging our platform. Kirchner acts as a Co-GP to funds and provides access to the firm’s domain and process expertise as well as our extensive global network.
Fund Management
We provide discretionary and non-discretionary management services for Investors choosing not to directly manage a portion of their investment portfolio. This can be done for any combination of fund investment, direct investment, or co-investment programs.
We develop a customized investment program in close collaboration with each Investor to ensure programs are tailored to specific objectives. This flexibility is essential to take into account each Investor’s sensitivity to risk tolerances, investment goals, and business considerations. Alignment of interest is ensured through a risk sharing compensation structure.
Kirchner actively manages capital as a General Partner of venture capital and private equity investment funds on behalf of their limited partners. Our services include replacement GP or supplemental GP, management of remnant funds, managing funds after their investment phase to improve fund performance and liquidity, management of funds with inherent issues and management of distributed private securities.
Strategic Spin-out
We are highly experienced working with corporate entities and capital sources to structure, monitor and manage assets that have been designated non-core.
Kirchner’s client was a $300 million fund-of-funds group within a Top 10 North American financial services firm requiring multiple services on short-notice and within tight time frames.
Engagement
Over a six month period, Kirchner assisted in providing outsourced due diligence services. Kirchner evaluated and provided an investment recommendation for a fund investment opportunity. This included:
An analysis of past performance at a company-by-company portfolio level
Interviews with the General Partners
Supplied and non-supplied third party reference calls
Review of the fund’s legal agreements
The final recommendation was provided in a format conforming to the client’s investment recommendation process and procedures.
Assessing an underperforming fund investment situation.
At the request of the Limited Partners, and with the cooperation from the fund investment in question, Kirchner provided an in-depth, unbiased review of the General Partner (GP) and its fund.
Kirchner’s assessment included an evaluation of the GP’s skills and capabilities, performance and exit probabilities of each portfolio company, and an analysis of the existing legal agreements to determine the options available to the fund’s Limited Partners (LP). Kirchner then presented the findings, options and recommendations to the LP Advisory Board.
Subsequently Kirchner was hired as a supplementary GP to manage out the fund’s life. In its first 12 months, Kirchner restructured the fund management, reduced operating expenses and follow-on financing requirements, provided strategic support and sourced fresh capital for identified portfolio companies with high prospects, and generated liquidity event exits within the portfolio.
Reviewing the existing private equity program.
Kirchner worked closely with the client to review their existing internal processes and procedures, actively participating in strategy sessions and program development.
As a result, monitoring protocols and reporting templates were updated to conform to current industry best practices.
Summary of Value Add
Flexible and responsive to short-term needs
A trusted independent expert that can create consensus in difficult situations (a catalyst for change)
Supplementary GP for a venture capital fund’s post-investment period
Ability to work both collaboratively and independently of the client team and funds under review
$400 million regional economic development fund performing direct and fund investments
Transitioning from a government sponsored entity into a standalone investment management company (IMC)
At the beginning of the engagement, our client faced the following challenges:
An inability to attract senior investment staff until the transition to an IMC was complete
The need for updated policies and procedures to provide future stakeholders with comfort over their fiduciary responsibility
A misguided market perception of the “economic development” mandate of the fund
Engagement
Kirchner was engaged by the fund to assist managing the existing portfolio, actively source new investment opportunities and prepare the transition to an IMC. In working with the investment team and through an assessment of the existing portfolio, it was determined that, while the fund possessed domain expertise and a strong investment network, it lacked the skills necessary to crystallize value in the portfolio. In response we provided an interim Chief Investment Officer and Investment Manager. Over18 months, Kirchner worked closely with the fund team to:
Maximize value in existing portfolio The fund portfolio was separated into top performers, companies in transition and companies to be salvaged. Strategic and operational issues were identified within each company. Legal documents were reviewed to highlight risks and weaknesses. A go-forward plan was then developed and executed for each investment.
Prepare for transition into an IMC An audit of fund internal processes and procedures resulted in a recommendation to adopt a set of new investment best practices. These were then implemented with us taking an active mentoring and monitoring approach throughout their adoption.
Provide Investment Management services Kirchner actively sourced deals for the fund and co-managed the investment process alongside the existing investment management team. We reached out to the investment community with an updated fund marketing message resulting in new investments brought into the economic development region.
Summary of Value Add
Crystallize value within the existing portfolio
Mentoring and guidance in day-to-day fund management
Advisory role in monitoring and investment reporting
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