Four Pillars with HKW A Robust,
New Approach
Four Pillars with HKW A Robust,
New Approach
Four Pillars with HKW A Robust,
New Approach
Stronger Together with HKW A Robust,
New Approach

At HKW we continually challenge ourselves to improve.

We embrace this philosophy through our Four Pillar approach. We are proud of how this structure supports the strengths of each individual while promoting collaboration between the pillars. Our team-first culture places a significant emphasis on data-driven execution from the deal sourcing process through our exit-focused strategic growth initiatives.

The Four Pillars of Success

Our dedicated Sourcing Team targets 1,000+ opportunities to review every year to find profitable growth-oriented companies in the US and Canada. At HKW, we believe in building relationships through eye contact and a handshake. As a result, our Sourcing Team typically spends a combined 100 weeks on the road every year, connecting with people and building relationships.

The Sourcing Team conducts the initial review of prospective companies. If a prospective company meets the established criteria, the opportunity progresses to the Transaction Team.

The Transaction Team evaluates opportunities provided by the Sourcing Team, determining fit within our established deal criteria, culture, and values. The transaction process reflects our commitment to fairness; we want to understand the current owner’s point of view and vision, striving to treat owners fairly throughout the entire process.

During due diligence, the Transaction Team will partner with our Operations Team to begin aligning with the opportunity’s senior management.

Once HKW acquires the portfolio company, the Operations Team takes the lead to collaborate with company management on operational strategies and growth initiatives. During this period, the Operations Team seeks to align goals and expectations alongside company management.

We take pride in our collaborative approach, providing support to company management by contributing essential resources, knowledge, and strategic insights. We believe that by working together, we can build stronger companies and create value.

HKW partners with portfolio company management to develop exit-focused strategic growth initiatives during the investment period. The Exits Team and the Operations Team begin the day the portfolio company closes, concentrating on the growth initiatives HKW believes future buyers will value most.

In 2015, HKW established the Exit Committee, which meets semiannually to review existing companies, refreshing the rate360 analysis for every company. The Exit Committee provides a formal process for evaluating the overall condition of our companies.

Investment Criteria

Business Services and Health & Wellness

HKW is a private equity firm investing in growth-oriented companies with talented management teams in the US and Canada. HKW targets small to mid-size companies in the Business Services and Health & Wellness sectors. We target:

Geographical Focus:

  • United States
  • Canada

$5-30mm

Target EBITDA

Within the broad Business Services and Health & Wellness sectors, we gravitate toward a variety of sub-sectors, including (but not limited to):

Business Services Sub-sectors

  • Electric Grid Services and Products
  • Infrastructure Services
  • IoT (Internet of Things)
  • Software
  • Tech-enabled Business Services
  • Training and Education
  • Water Services and Products

Health & Wellness Sub-sectors

  • Better-for-You Consumer Products and Services
  • Food & Beverage
  • Healthcare Supplies and Distribution
  • Outsourced Healthcare Services
  • Pet Products and Services
  • Physician Services / Alternative Site

Investment Criteria

Technology

HKW Technology is focused on buyouts and structured minority equity investments in middle market software and technology companies with highly recurring revenue. Our flexible investment approach allows us to invest across the capital structure and work creatively with high growth businesses.

Geographical Focus:

  • United States
  • Canada

$10mm+

Recurring Revenue

Within the broad technology sector, we focus on software and other highly recurring revenue technology businesses, including (but not limited to):

Vertical Enterprise Software and Technology Sub-sectors

  • Education Technology
  • Energy Technology
  • Financial Technology & Payments
  • Government Software
  • GRC Software
  • Healthcare IT
  • Logistics & Transportation Software
  • Real Estate Software
  • Retail & Consumer Software

Horizontal Software and Technology Sub-sectors

  • Artificial Intelligence & Virtual Reality
  • Cloud/SaaS Infrastructure
  • Data & Intelligence Software
  • Human Capital Management Software
  • Mobility Software
  • Security Software
  • Systems Management Software

rate360

At HKW, we manage risk by leveraging our proprietary rate360 methodology, quantifying and monitoring risks during the period of partnership with our companies.

We use the rate360 methodology to:

  1. Evaluate risk by identifying, assessing and scoring a comprehensive list of factors into a company-specific risk scorecard.
  2. Develop a risk mitigation plan with the Operations Team for our companies.
  3. Assess and monitor our companies through changes in the risk scorecard, which is reviewed during the Exit Committee semi-annual meetings.
  4. Aggregate Risk Scorecards to provide a complete view and to flag any risk concentrations or concerns.
rate360