Koch Equity Development

The Investment and Acquisition Subsidiary of Koch

Koch Equity Development (KED) is part of Koch Industries, one of the largest privately held businesses in America, with estimated annual revenues as high as $100 billion, according to Forbes. Koch’s shareholders reinvest 90 percent of the firm’s earnings back into the company and as the acquisition and investment subsidiary of Koch, KED has the primary responsibility of profitably investing the firm’s excess capital. Since 2003, Koch companies have invested more than $80 billion in acquisitions and other capital expenditures. Operating out of offices in Wichita and London, KED operates as a flat, closely-knit organization structured to move with speed and certainty.

How and Where KED Invests

As outlined below, KED focuses its efforts on strategic acquisitions and industry agnostic principal investments for the group’s own portfolio. This permits KED to explore a wide, diverse range of opportunities and investments.

View all of our featured investments.

Strategic Investments

Tuck-In Acquisitions

New Platform Acquisitions

  • Acquisitions that extend the Koch franchise, managed as a standalone entity
  • Conservatively capitalized with a long-term-hold strategy
  • Apply Koch’s MBM® philosophy to help drive long-term value creation
  • Target companies:
    • With strong management teams and a strict culture of compliance
    • With EBITDA greater than $250 million
    • With strong competitive advantage and growth opportunities
  • Examples of situations that fit us well include:
    • Companies with misaligned incentives that drive poor capital allocation
    • Businesses that have strong cash flow but are underappreciated or out of favor in the public markets
    • Private companies going through a transition that prefer to be in the hands of a long-term investor
  • Recent examples:

Principal Investments

Partnered Acquisitions

  • Common equity buyout investments alongside like-minded financial, corporate, family or management partners
    • Up to 50% ownership with joint control
  • Active management and operational involvement from the board level
  • Will supplement the acquisition by the partnership with structured capital solutions if necessary
  • Minimum investment size of $250 million
  • Recent examples:

Structured Investments