We started with one small step.
Keystone Capital was formed in 1994 by Kent Dauten and Scott Gwilliam. Kent, a co-founder and general partner of a prominent Chicago institutional private equity firm, decided to pursue his goal of owning and operating his own business – a goal both he and Scott shared.
Kent and Scott acquired four individual locations of Record Masters, a healthcare records management business. Over the next three years, Kent and Scott operated Record Masters as CEO and CFO, growing it to 13 locations nationwide through organic growth and several strategic acquisitions. Record Masters’ sales and profitability also grew more than four-fold and it became the largest US provider of its services in the United States. In 1997, Record Masters was merged into Iron Mountain, Inc. (NYSE:IRM), and Kent and Scott stayed on to operate the new healthcare division of Iron Mountain for a transition period.
After this initial success, they didn’t believe raising a traditional fund with outside investors was the best path forward given the short-term investment horizon and misalignment of interests with management inherent in this model. At the same time, they wanted to build a more diverse collection of businesses led by strong day-to-day managers rather than having a “portfolio of one.”
They decided to create what Keystone Capital is today – a firm investing in market leading, niche companies in partnership with their management teams, but investing in them personally. This hybrid approach provided Keystone with the flexibility to be a longer-term oriented, patient yet decisive firm, without the pressures of outside investors. Furthermore, this approach allowed Keystone to leverage its operating experience by having the time to support, guide and partner with the day to day leaders of our companies.
Since then, Keystone has invested in 20+ companies all sharing one thing in common – a mutual commitment by management and Keystone to thoughtfully and patiently build a sustainable, market leading business.
We invite you to further explore our website to learn more about our firm and our belief in the wisdom of “Personal Equity.”
“KEYSTONE’S CRAFTING OF THE DEAL TO ACQUIRE A CONTROLLING INTEREST IN ISRAEL BERGER & ASSOCIATES WAS A MASTERFUL ACT OF BALANCE. ALL PARTICIPANTS WERE ABLE TO BALANCE RISK, REWARD, INCENTIVE, SACRIFICE, TIME HORIZON AND ACCOMMODATION. IT WAS ACCOMPLISHED BY A RIGOROUS INTELLECTUAL ANALYSIS, CAREFUL LISTENING AND PATIENCE. THE FOLKS AT KEYSTONE ARE FUN TO WORK WITH, AND THEIR EXPERIENCE AND STRATEGIC THINKING IS INVALUABLE.”
- ISRAEL BERGER, FOUNDER AND PRESIDENT, ISRAEL BERGER & ASSOCIATES
“AS AN INTERMEDIARY, KEYSTONE’S THOUGHTFULNESS, FLEXIBILITY AND PATIENCE THROUGH A CHALLENGING DEAL PROCESS PROVED EXTREMELY VALUABLE IN THE GRANNY’S KITCHENS TRANSACTION. THEIR STRATEGY AND SPEED TO CLOSE IS HIGHLY UNIQUE AMONGST THEIR PEER SET, AND WHEN THEY SAY THEY ARE GOING TO DO SOMETHING – THEY DO IT. I LOOK FORWARD TO WORKING WITH THEM AGAIN IN THE FUTURE.”
- PAUL SCHAYE, MANAGING DIRECTOR, CHESTNUT HILL PARTNERS, LLC
