Asset Management

The Kirchner team did an excellent job taking over a declining situation, turning things around and managing the portfolio to its successful completion. It is comforting to know that this resource exists for investors and managers seeking to get portfolios back on track

Gaetan LussierChairmanForagen Technologies Management Board

We manage assets for some of the largest insurance companies, commercial banks and institutional investors in the world. We also manage our own proprietary funds.

Kirchner Group is active in in two aspects of asset management, Fund Formation and Fund Management

Our Fund Management Experience:
Kirchner Group Asset Management Map 2015

Bud Kirchner’s 2013 partnership with Crestline Investors (an institutional alternative investment manager) was based on our “Successor GP” program. The resulting Crestline-Kirchner Private Equity Group is focused on acquiring, managing and investing in underperforming and undervalued private equity assets, portfolios and funds. This group is led by W.B (Bud) Kirchner, our founder and architect of the proven “Successor GP” program. We bring to the partnership a 29-year track record of restructuring companies. We have also been successfully deploying this model across a series of portfolios ranging from early stage venture to mid-market buyout since 2004. For more information click here or read the press release.

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.

Tailored venture capital and private equity investment management and advisory services.

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.

Fund Structures
We have deep knowledge around fund structures from our years of experience in the private equity world. We have expertise in the development of Business Models, Investment Models and Fund Models.

Mechanisms of Investments
We are intimately involved with the mechanisms of investments including but not limited to the Offering Memorandum, Limited Partnership Agreement, Subscription Agreement and Investor Questionnaire.

Regulatory Framework
We have a deep understanding of the basic regulatory framework required when forming a fund and we are also familiar with many other regulatory issues that can arise during the formation of a fund.

Marketing
We have established expertise in the preparation of marketing materials required when forming a fund including, creating and launching a website, developing pitch documents, and structuring and building an electronic data room.
Our highly experienced team can help with almost all aspects of fund formation.

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.

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Asset Management Tombstones

Buyout Fund (Unnamed)
Buyout Fund (Unnamed) Portfolio Manager
Middle market buyout fund
Kirchner Group provides outsourced investment advisory, fund formation and fund management services.
Food Security Group
Food Security Group
Launched to address the emerging global need for funding to support companies that are helping to solve current worldwide food security issues
Kirchner Group provides outsourced investment advisory, fund formation and fund management services.
Top 10 North American Financial Services Firm
Top 10 North American Financial Services Firm
Review of existing private equity program. Outsourced due diligence. Assessment of an underperforming fund investment
Kirchner Group provides outsourced investment advisory, fund formation and fund management services.
View All Kirchner Group Tombstones

 

Asset Management Case Studies

$400 million regional economic development fund

Background

  • $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 Investment Management 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. Over the past 18 months, Kirchner Investment Management has 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 salvage. 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 Investment Management 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
  • Supplementary investment manager
  • Generation of new, high quality, deal flow
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View All Kirchner Group Case Studies