“Power transformation is an thrilling space and one of many 4 particular verticals through which we’re presently pursuing investments,” says Koch Strategic Platforms president David Park on this Q&A with Mergers & Acquisitions. “The power transformation area might embody investments in fossil gasoline worth chain transformation, new sources of power, power infrastructure and the electrification of transportation.”
Inform us about Koch Strategic Platforms.
Koch Strategic Platforms was established within the Fall of 2020 and was shaped as a part of Koch Industries’ bigger group, Koch Funding Group. Primarily based in Wichita and Atlanta, we’re presently pursuing private and non-private progress fairness investments in corporations inside focused industries which have progress tailwinds. Our main focus areas are presently power transformation, connectivity and computing, industrial automation, and healthcare. We shall be specializing in leveraging Koch corporations’ main market positions to speed up progress and create virtuous cycles of mutual profit for us and our companions.
Do you see power transformation as a cornerstone to your investments?
Power transformation is an thrilling space and one of many 4 particular verticals through which we’re presently pursuing investments. The power transformation area might embody investments in fossil gasoline worth chain transformation, new sources of power, power infrastructure and the electrification of transportation. We proceed to guage new areas of focus as properly.
Are you eyeing different sectors?
KSP has dedicated over $1.2 billion in quite a few sectors since our inception with the purpose of investing $2-3 billion by yr’s finish. Whereas we’re holding all choices open, now we have invested in connectivity & computing, power transformation, industrial automation and healthcare. We’re additionally evaluating alternatives in superior supplies, FinTech and cybersecurity.
What’s your strategic imaginative and prescient for Koch Strategic Platforms?
KSP is specializing in proactive investing in progress fairness corporations the place disruptive traits are accelerating and we are able to add worth by way of Koch’s various information and capabilities. We consider Koch as a laboratory—a spot for innovation and experimentation—which permits us to deliver worth past simply investing when it’s applicable. We will typically provide entry to world-class, world capabilities in provide chain, engineering, finance, HR, and many others. and in addition make buyer and provider connections within the dozens of business verticals in additional than 70 nations the place Koch Industries operates. We set the purpose of being the popular funding companion with growth-focused, strategic corporations who’re innovating in “new financial system” industries. We’re trying to make materials minority fairness investments in nice corporations with nice administration groups the place there’s alternative for mutual profit.
What’s your tackle SPACs?
We imagine SPAC’s have a big market presence right now as a car for corporations to pursue a public possession path. It’s an space we’re intently evaluating and looking for potential paths of alternative.
Are you seeing much more SPACs in comparison with years previous?
SPAC’s are definitely having their second. Clearly, SPAC exercise has seen a dramatic improve from the start of 2020 by way of right now. We’re seeing corporations with high-growth potential, buck the standard IPO course of, which we imagine creates extra alternative for funding and potential forward-looking progress.
Will SPACs stay scorching or are we seeing a SPAC bubble that may burst?
2020 was a document yr for SPAC’s, and the tempo of exercise has picked up in early 2021. Are we at a cyclical excessive? I don’t know. We’re way more targeted on investing in corporations with nice long run fundamentals and potential than attempting to time market cycles.