Our investment approach

KDI’s investment approach is defined by a few salient themes guiding our team to identify worthy investments, create value and manage risks. They include:

Value investing

We constantly look out for investments with attractive valuations, such as distressed assets that owners are forced to sell below their perceived value due to their personal financial circumstances. We invest in situations overlooked by others and in enterprises beset by capital market dislocations or negative market sentiments. We are also interested in asset-based investments with stable long term cash flows. In our experience, the best acquisitions are made during operationally tough environments and the KDI team is not afraid to overcome complicated situations in order to secure positive buying opportunities.

Flexibility

KDI is continually looking for worthy investment opportunities. In doing so, our strategy remains flexible and responsive to market changes. We target equity assets we can directly control and will establish portfolio companies to own and manage them. Although we favor companies that offer long-term growth prospects, we are also open to the idea of purchasing runoff companies and portfolios where cash flows are likely to be significant. We are particularly interested in distressed assets. When such opportunities are presented to us, we partner with both the out-of-money equity holder and lender at the same time, acting as a white knight to bridge the gap and inject new capital into the asset and bring it to market.

Synergy

Collaborating with our strategic partners in search of the choicest acquisition opportunities around the world as well as forming possible corporate partnerships to harness these investments for their optimal value is also a signature element of our approach.

Due diligence(risk management)

A disciplined due diligence process is carried out on every prospective investment or deal, to measure the risks against the estimated returns. During this stage, several issues are to be addressed: What is the strategic logic behind the targeted deal? How will the deal generate value? Through our industry contacts, we will gather detailed, unbiased facts about the target’s operations and understand its internal resources and capabilities. We will also examine a host of dynamics, at market, sector, risk and competitive levels, to determine if the target investment is worth committing to.