Kelso & Company focuses its efforts and resources on investment opportunities in partnership with highly capable management teams in middle market companies primarily located in the United States and Canada.
Kelso adheres to the following investment principles:
- The Firm’s most important consideration in evaluating an investment is the capability, integrity, character, commitment and experience of the company’s management.
- Kelso structures investments to closely align management’s interests with those of investors. Each key member of the company’s management team typically makes a meaningful personal equity investment in the company on the same terms as Kelso.
- Kelso’s Principals and employees are collectively, by far, the single largest investor in each of Kelso’s four most recent funds. Kelso believes that this financial commitment creates a strong alignment of interests with management teams.
- Kelso has a long-term investment philosophy. On average, Kelso has held realized portfolio investments for approximately five and a half years. Throughout the investment process, Kelso works closely with management to plan and implement strategic and operational improvements designed to increase equity value. Management teams are encouraged to grow their businesses through capital expenditures, acquisitions and expansion.
Kelso has consistently made follow-on equity investments to support portfolio company growth. Under Kelso's ownership, its portfolio companies have completed acquisitions with aggregate initial capitalization at closing of over approximately $10 billion.
- Kelso believes that this long-term view helps create value as it gives management sufficient time to implement the strategic plan for creating shareholder value, and allows the Firm to make opportunistic exit decisions.