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MIRA INFORM REPORT
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Report No. : |
504200 |
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Report Date : |
21.04.2018 |
IDENTIFICATION DETAILS
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Name : |
KPS CAPITAL PARTNERS, LP |
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Registered Office : |
850 New Burton Road Suite 201, Dover, Kent, De, 19904 |
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Country : |
United States |
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Financials (as on) : |
2016 |
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Date of Incorporation : |
1991 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Subject is a private equity firm specializing in investments in special
situations which includes turnarounds, financial restructurings, businesses
in bankruptcies, follow on acquisitions, employee buyouts, failed
acquisitions, corporate divestitures, carve-outs, and spin-offs of middle
market companies. |
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No. of Employees : |
68 (7,789 the whole group) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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United States |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
UNITED STATES - ECONOMIC OVERVIEW
The US has the most technologically powerful economy in the world, with a per capita GDP of $59,500. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at purchasing power parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.
In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, businesses face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.
Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.
The onrush of technology has been a driving factor in the gradual development of a "two-tier" labor market in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers such as China, has put additional downward pressure on wages and upward pressure on the return to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.
Imported oil accounts for more than 50% of US consumption and oil has a major impact on the overall health of the economy. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. Because the US economy is energy-intensive, falling oil prices since 2013 have alleviated many of the problems the earlier increases had created.
The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the US into a recession by mid-2008. GDP contracted until the third quarter of 2009, the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009, Congress passed and former President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the Federal Government reduced the growth of spending and the deficit shrank to 7.6% of GDP. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.
Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through FY 2018, the direct costs of the wars will have totaled more than $1.9 trillion, according to US Government figures.
In March 2010, former President OBAMA signed into law the Patient Protection and Affordable Care Act (ACA), a health insurance reform that was designed to extend coverage to an additional 32 million Americans by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on healthcare - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010.
In July 2010, the former president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.
In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short-term rates near zero until unemployment dropped below 6.5% or inflation rose above 2.5%. The Fed ended its purchases during the summer of 2014, after the unemployment rate dropped to 6.2%, inflation stood at 1.7%, and public debt fell below 74% of GDP. In December 2015, the Fed raised its target for the benchmark federal funds rate by 0.25%, the first increase since the recession began. With continued low growth, the Fed opted to raise rates several times since then, and in December 2017, the target rate stood at 1.5%.
In December 2017, Congress passed and President Donald TRUMP signed the Tax Cuts and Jobs Act, which, among its various provisions, reduces the corporate tax rate from 35% to 21%; lowers the individual tax rate for those with the highest incomes from 39.6% to 37%, and by lesser percentages for those at lower income levels; changes many deductions and credits used to calculate taxable income; and eliminates in 2019 the penalty imposed on taxpayers who do not obtain the minimum amount of health insurance required under the ACA. The new taxes took effect on 1 January 2018; the tax cut for corporations are permanent, but those for individuals are scheduled to expire after 2025. The Joint Committee on Taxation (JCT) under the Congressional Budget Office estimates that the new law will reduce tax revenues and increase the federal deficit by about $1.45 trillion over the 2018-2027 period. This amount would decline if economic growth were to exceed the JCT’s estimate.
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Source
: CIA |
STATUTORY
INFORMATION
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Legal Name: |
KPS CAPITAL PARTNERS, LP |
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Trade Names: |
KPS CAPITAL PARTNERS, LP |
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ID: |
4274176 |
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Date Created: |
1991 |
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Date Incorporated: |
12/21/2006 |
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Legal Address: |
850 NEW BURTON ROAD SUITE 201, DOVER, KENT, DE, 19904, USA |
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Operative Address: |
485 Lexington Avenue 31st Floor New York, NY 10017 United States |
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Telephone: |
212-338-5100 |
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Fax: |
646-307-7100 |
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Legal Form: |
LIMITED PARTNERSHIP |
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Email: |
- |
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Registered in: |
DELAWARE |
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Website: |
www.kpsfund.com |
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Contact: |
Mr. Eugene J. Keilin - Co-Founder Emeritus |
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Staff: |
68 (7,789 the whole group) |
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Activity: |
SIC Code 6722, Management Investment Offices, Open-End NAICS Code 525910, Open-End Investment Funds |
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Banks: |
BANK OF AMERICA |
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History: |
KPS Capital Partners, LP was
founded in 1991 and is based in New York, New York with an additional office
in Frankfurt, Germany. |
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Key Developments: |
KPS Capital Partners, LP Presents at CFOs & COOs Forum 2018,
Jan-25-2018 03:00 PM Jan 2 18 KPS Capital Partners, LP Presents at CFOs & COOs Forum 2018,
Jan-25-2018 03:00 PM. Venue: Grand Hyatt New York, New York, New York, United
States. Speakers: Chistopher Anderson, General Counsel & Chief Compliance
Officer. KPS Mulls Acquisitions May 30 17 KPS Capital Partners, LP signed a definitive agreement to acquire
DexKo Global Inc. Raquel Palmer, a Partner of KPS, said, "We are very
excited to acquire DexKo Global, a market leader with industry-leading
quality, customer service and product innovation. We look forward to working
with Chief Executive Officer Fred Bentley and the management team to
aggressively grow DexKo Global both organically and through strategic
acquisitions." Taylor Made Golf Company Mulls Acquisitions May 11 17 Taylor Made Golf Company, Inc. is seeking acquisitions. David Shapiro,
a Managing Partner of KPS Capital Partners, LP, said, " We look forward
to working with Chief Executive Officer David Abeles, his management team and
all Taylor Made Golf Company employees around the world to build on great
platform by driving growth both organically and through strategic
acquisitions.” |
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PRINCIPAL
ACTIVITY
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KPS Capital Partners, LP is a private equity firm specializing in
investments in special situations which includes turnarounds, financial
restructurings, businesses in bankruptcies, follow on acquisitions, employee
buyouts, failed acquisitions, corporate divestitures, carve-outs, and
spin-offs of middle market companies. |
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Products/Services description: |
In case of turnarounds, the firm seeks to invest in of underperforming
or distressed businesses. It targets business facing closure, liquidation, and
with a history of operating losses. In case of business in bankruptcies, it
seeks to invest in, fund reorganizations of, and create new companies to
purchase operating assets of, companies facing bankruptcy or asset sale under
Section 363. The firm targets businesses burdened with, insufficient
liquidity; excessive debt; operating in default of obligations to creditors;
or lacking capital for investment, modernization, or growth, in order to
eliminate, reduce or restructure the company's liabilities. The firm also
seeks to invest in operating businesses, including divisions, subsidiaries or
individual plants of larger companies capable of operating as stand-alone
companies. It also provides exit financing to banks and other creditors,
secured or unsecured loans in connection with obtaining control pursuant to a
purchase transaction, and considers extending Debtor-In-Possession (DIP)
financing. The firm does not invest high technology, financial services,
telecommunications, broadcast media, real estate, and natural resources
(exploration) sectors and start- up ventures or re-starts. It prefers to
invest in companies operating in the manufacturing focuses include: metals
automotive, paper, packaging, building materials, construction equipment,
luxury and consumer products; transportation; industrial companies across a
diverse array of industries, including basic materials, branded consumer,
healthcare and luxury products, automotive parts, capital equipment and
general manufacturing; and service industries and industries that are out of
favor, having low-growth, cyclical, contracting, or burdened with
over-capacity. The firm primarily invests in companies based in the United
States, North America, Canada and Western Europe and Germany. It prefers to
invest between $100 million and $500 million per transaction in companies
having revenues of at least $250 million. The firm seeks to invest in
transaction sizes up to $1 billion. It sponsors larger transactions by
co-investing. The firm’s investments are structured in the form of common
stock or securities that are convertible into common stock, including
preferred stock debentures. The firm prefers to be a control investor or
majority investments and takes a board seat in its portfolio companies. |
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Brands: |
The company does not have any brands of its own. |
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Sales are: |
- |
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Clients: |
Private Companies |
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Suppliers: |
NA |
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Operations area: |
National and International |
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The subject employs |
68 employees (7,789 the whole group) |
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Payments: |
No Complaints |
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LOCATION
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Headquarters : |
485 Lexington Avenue 31st Floor New York, NY 10017 United States |
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Comments on Address: |
- |
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Branches: |
No other branches were found. |
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Related Companies: |
KPS SPECIAL SITUATIONS FUND II, LP 485 Lexington Avenue 31st Floor New York, NY 10017 United States KPS SPECIAL SITUATIONS FUND III, LP 485 Lexington Avenue 31st Floor New York, NY 10017 United States KPS SPECIAL SITUATIONS FUND III (AIV II), LP 485 Lexington Avenue 31st Floor New York, NY 10017 United States KPS SPECIAL SITUATIONS FUND III (SUPPLEMENTAL - AIV II), LP 485 Lexington Avenue 31st Floor New York, NY 10017 United States KPS SPECIAL SITUATIONS FUND IV, LP 485 Lexington Avenue 31st Floor New York, NY 10017 United States |
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In 2014, KPS Capital Partners, LP announced that, through a newly
formed affiliate, it has entered into definitive agreements to acquire
Electrical Components International, Inc. and its affiliates. |
GROUP
STRUCTURE AND SUBSIDIARY COMPANIES
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Listed at the stock exchange: |
NO |
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Capital: |
NA |
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Shareholders: |
The company does not disclose information
on shareholders. The following information has been provided by private
sources: Mr. Michael George Psaros Mr. David P. Shapiro |
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Management: |
Mr. Eugene J. Keilin - Co-Founder Emeritus Mr. Michael George Psaros - Co-Founder
& Managing Partner Mr. David P. Shapiro - Co-Founder &
Managing Partner Ms. Bhumika Shah - Chief Financial Officer Ms. Raquel Vargas Palmer - Partner |
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FINANCIAL
INFORMATION
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The company does not make its financial
statements public. The following information has been provided by private
sources: |
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USD 2016 |
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Sales |
2,232.380.000 |
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Cash flow |
Normal |
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LEGAL
FILINGS
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PATENTS |
No found. |
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GOVERNMENT CONTRACTS |
No records found. |
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CASES |
In re: Heritage Home Group LLC, et al v. FBI Wind Down Inc Liquidating Debtor - Appellee: In re: FBI WIND DOWN INC, formerly known as
Furniture Brands International Inc Plaintiff - Appellant: HERITAGE HOME GROUP LLC, KPS CAPITAL PARTNERS
LP, KPS SPECIAL SITUATIONS FUND III LP, KPS SPECIAL SITUATIONS FUND III (A)
LP, KPS SPECIAL SITUATIONS FUND III (SUPPLEMENTAL- AIV) LP, KPS OFFSHORE
INVESTORS LTD and KPS SPECIAL SITUATIONS FUND III (SUPPLEMENTAL) LP Defendant - Appellee: FBI WIND DOWN INC LIQUIDATING TRUST, by and
through Alan D. Halperin, as Liquidating Trustee Case Number: 17-2315 Filed: June 19, 2017 Court: U.S. Court of Appeals, Third Circuit Nature of Suit: Bankruptcy Appeals Rule 28 USC 158 WWRD US, LLC et al v. MILLER Plaintiff: KPS CAPITAL PARTNERS LP and WWRD US, LLC Defendant: IRA MILLER Case Number: 2:2013cv03258 Filed: May 22, 2013 Court: New Jersey District Court Office: Newark Office County: Monmouth Referring Judge: Michael A. Hammer Presiding Judge: Faith S. Hochberg Nature of Suit: Other Statutory Actions Cause of Action: 28:2201 Declaratory Judgement Jury Demanded By: None High Falls Brewing Company, LL v. Boston Beer Corporation Plaintiff-Counter-Defendant - Appellee: High Falls Brewing Company,
LLC, High Falls Operating Co, LLC, North American Breweries, Inc. and KPS
Capital Partners LP Defendant-Counter-Claimant - Appellant: Boston Beer Corporation Case Number: 12-3648 Filed: September 13, 2012 Court: U.S. Court of Appeals, Second Circuit Nature of Suit: CONTRACT-Other Contract Action |
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TRADEMARKS |
KPS Private equity fund investment services; investment advisory services Owned by: KPS Capital Partners, LP Serial Number: 85183506 |
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RENEWAL HISTORY |
No records found. |
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UCC |
No records found. |
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OFAC Sanctions List Search |
The company is not listed in the OFAC list. |
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SUMMARY
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Founded in 1991, KPS Capital Partners, LP is an organization in the
Open-End Investment Funds Industry headquartered in New York, NY. The whole group has 7,789 employees and generates an estimated $2.2
billion USD in annual revenue. The company operates nationally and
internationally. It is ACTIVE in business with no negative records. |
RISK
INFORMATION
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DEBTS |
Controlled |
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PAYMENTS |
No Complaints |
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CASH FLOW |
Normal |
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STATUS |
Active |
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INTERVIEW
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NAME |
- |
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POSITION |
- |
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COMMENTS |
The person contacted was reluctant to provide any information. |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.02 |
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1 |
INR 92.73 |
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Euro |
1 |
INR 81.46 |
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USD |
1 |
INR 0.57 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
NIS |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low risk
of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably on
secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the business
is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.