Steven R. Morgan

Retails crafts and fabrics

Operates specialty game stores

Retails video game products and PC entertainment software

Functions as a College/University

Kairos Capital Partners provides hybrid capital investments and funded debt solutions to retail and consumer products companies throughout North America and abroad. The firm seeks to invest in companies that are fundamentally sound but have been overlooked by traditional private equity or mezzanine capital sources due to their size, complexity or circumstances. They emphasize transactions where partnership and a value-added strategy are important considerations for the company. These companies are primarily small to mid-size, multi-channel retailers and consumer products companies with revenues under $100 million. The typical investment size ranges from $4 million to $15 million, with larger investments funded in with joint-venture partners. Kairos' investments are focused primarily in the following industry sectors: (1) retail and direct-to-consumer companies, including a broad range of consumer channels (other than food or service industries) (2) wholesale companies, brands (including micro-brands) and intellectual property (3) opportunities regarding specific asset classes or opportunistic situations involving undervalued assets, bankruptcy, target acquisitions or roll-ups and (4) international opportunities. Kairos' due diligence process include an assessment of management, an independent asset valuation, analysis of the industry and competitive dynamics, customer and supplier interviews, a thorough operational and financial review, confirmation of strategic, tactical and financial plans and identification of likely exit alternatives and anticipated challenges in achieving the business plan. Kairos looks for companies with the following characteristics: (1) a strong or meaningful brand or identifiable niche or concept (2) a management team with meaningful equity ownership and or experience (3) a dominant or defensible market position (4) a leveragable opportunity for targeted return on invested capital (5) stable operating margins with an ability to generate free cash flow (6) recently stable or opportunistic balance sheet with a focus on imbedded value (7) clear, identifiable and profitable real estate strategy (8) reliable systems with data integrity and infrastructure to build upon and (9) relevant business model as defined by scale, competitive environment, strategic drivers for growth, identifiable market opportunities and roadblocks.