It’s really pretty simple.
We’re in this together, at every turn.

Commitment of Personal Capital
It’s easy to take unnecessary risk when you are using “using other people’s money.” However, like our management teams Keystone has our own “skin in the game.” This simple fact creates a partnership dynamic that fosters complete alignment of interests and a disciplined, thoughtful approach to risk taking.

Long-Term Investment Horizon
As the management team of a middle-market business, you don’t have an artificial time horizon on your business – so why should your financial partner? Keystone’s commitment of personal rather than third party capital ensures that management and its financial partner are on the same page about decisions to keep building the business, or whether it is the right time to consider investment realization.

Zero Failure Philosophy
Management teams often don’t have the luxury of wealth diversification – your ownership interest in the business is your largest individual asset. Why seek a partner to whom a single business is just another investment in a fund? We approach every investment on its own merits and never just “throw in the towel”. We simply don’t subscribe to this philosophy, which is common in the fund-based investment community. The true test of any financial partner is how they behave not only in good times, but more importantly in the tough times.

Institutional Private Equity Firm   Keystone Capital

Source of Capital   Institutions / Third Parties   Personal Capital of Keystone Partners

Investment Horizon   3 - 5 Years   7 - 10+ Years

Incentive   – Fundraising/Fund Management Fees – Return Capital to Investors   - Partner with Quality Companies – Long-term Growth

Investment Model   Portfolio Approach (Loss of Business Individuality)   Zero Failure Philosophy (Each Business Must Individually Succeed)

Common Capital Structure   Aggressive (Less Equity)   Conservative (Less Debt)

Common Exit Decision Driver   Life of Fund / Fundraising   Management Appetite

Annual Transaction Volume   High (5+)   Low (2-3)

Timing to Close   60-90 Days   30-60 Days

Operational Expertise   Varies   High

Financing Relationships   Driven by Pricing and Leverage   Fewer Close, Long Term Relationships

Alignment of Interests With Management   Low   High

“AS THE FOUNDER OF MY BUSINESS, WHEN I CHOSE TO PURSUE AN INVESTMENT PARTNER, I WANTED A FIRM THAT APPRECIATED WHAT I HAD ALREADY BUILT, RESPECTED THE VALUES WE HAD IN PLACE, AND WAS ABLE TO CONTINUE OUR GROWTH.  IN KEYSTONE CAPITAL, I FOUND THAT PARTNER.  FROM DAY ONE, THEY HAVE BEEN DEEPLY ENGAGED IN OUR INDUSTRY AND OUR BUSINESS – TOGETHER WE HAVE GROWN REVENUES FOUR-FOLD, COMPLETED TWO ACQUISITIONS, EXPANDED THE EXECUTIVE TEAM AND MANAGED TO HAVE A LOT OF FUN ALONG THE WAY”.

- LANNY BAILEY, FOUNDER AND CHAIRMAN, CONTROLLED PRODUCTS, LLC.

“THE MOST IMPORTANT KEY TO SUCCESS IN THIS INDUSTRY IS HAVING A PARTNER THAT YOU CAN TRUST.  A TEAM THAT YOU CAN RELY ON FOR SUPPORT THAT HAS A DISCIPLINED ACQUISITION STRATEGY AND EXPERTISE IN FINANCIAL MARKETS.  AND WHEN THIS IS COMBINED WITH KEYSTONE’S STRONG FINANCIAL FOUNDATION AND AN OPERATING PHILOSOPHY AND CULTURE THAT IS GEARED TO LONG TERM SUCCESS, THEN YOU HAVE A WINNING COMBINATION.“

- KEVIN MCDONOUGH, PRESIDENT, KEYSTONE BAKERY HOLDINGS

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