Backcast Partners Invests in KMS
New York, NY (December 8, 2020) — Backcast Partners Management, LLC (“Backcast”), a provider of capital for both middle market private equity and non-private equity owned companies, is pleased to announce its most recent investment supporting the acquisition of a majority stake in KMS, Inc. (“KMS”) by New State Capital Partners (“New State”), a leading traditional middle market private equity firm focused on the business services, industrials, and consumer sectors.
KMS, headquartered in Wichita, Kansas and founded in 1973, specializes in the acquisition and resale of closeout and value-priced consumer products, offering leading brand manufacturers an avenue to monetize overstock and other non-standard inventory without sales channel disruption. In addition, the Company offers retailers the opportunity to acquire attractive discounted everyday products to which they would not otherwise have access.
“KMS has a leading market position in a highly fragmented industry, is a valuable supply chain partner to both manufacturers and retailers, is generally focused on recession resilient products, and possesses a highly capable senior management team,” said Backcast Managing Partner Mark Gudis. “We are thrilled to once again support New State, whom we view as an ideal owner for KMS due to their well-deserved reputation for building scale by aligning interests with their management partners, utilizing technology to create efficiencies and developing additional sales channels to drive growth.”
Backcast’s investment consisted of senior secured debt and an equity co-investment.
“Backcast has been a great partner to work with on this transaction,” said Kurt Lentz, a Principal at New State. “We particularly appreciated their ability, aided by their operating partners, to assess and understand the dynamics and growth opportunities of KMS’ business within this highly attractive market niche.”
Backcast was represented in the transaction by Greenberg Traurig LLP.
About Backcast Partners
Formed in 2016, Backcast provides thoughtful and customized capital solutions across the capital stack to middle market companies. Backcast Managing Partners have been supporting traditional middle market companies for decades. Backcast, with assets under management of over $775 million, targets investment sizes from $10 – $100 million in both sponsored and non-sponsored companies. The firm has offices in New York City, Millburn, NJ, and Los Angeles, CA.
About New State Capital Partners
New State Capital Partners LLC is an entrepreneurial-minded private equity firm that strives to be nimble, decisive, and cooperative. New State prides itself on a long-term outlook, approaching each potential investment as an opportunity to create lasting and valuable relationships with company founders, independent sponsors, and others. New State seeks to invest in market-leading companies with $8 million to $30 million of EBITDA in the areas of business services, industrials, and consumer. New State can commit more than $50 million of equity capital per transaction, using a variety of investment structures, through New State Capital Partners II, LP. New State and its affiliates have invested in 25 companies to date. For more information visit www.newstatecp.com.