Year in Review

A Year for Ingenuity

2023 has been a year for ingenuity. 

In a challenging landscape, we’ve remained consistent in our strategy of building category leaders in enterprise software. Within our K1 framework, we looked for innovative ways to approach big-picture problems facing our portfolio companies. We became subject-matter experts on the most pressing topics of the year–like interest rate hedging and AI implementation. During a year where many did not see any realizations, we saw five liquidity events in 2023, further solidifying that what we do, we do best.

REPEAT

In a challenging landscape, we’ve remained consistent in our strategy of building category leaders in enterprise software. Within our K1 framework, we looked for innovative ways to approach big-picture problems facing our portfolio companies. We became subject-matter experts on the most pressing topics of the year–like interest rate hedging and AI implementation. During a year where many did not see any realizations, we saw five liquidity events in 2023, further solidifying that what we do, we do best.

 

 

Major Developments

Founder Friendly Investitors

Named to Inc. Top Founder-Friendly Investors for 4th year in a row

Recognized by Knight Foundations as a minority-owned asset manager

5

Five liquidity events in 2023

25% of our executive teams are staffed with women

Private Equity CXO 1

Top 50 Private Equity Firms for Executives

K1 Snapshot

Total Platform Investments
Yellow square
0
$ 0 B+
Transaction Value
0 +
Portfolio Company Employees
Total Add-On Investments
Blue square
0
Portfolio ARR
$ 0 B+
Bank Debt Raised
* Hedged 87% of our floating rate debt at an average SOFR rate of 4%.
$ 0 B+

2023 in Numbers

0
Follow-on
Investments
0
New
Investments
0
Debt
Financings
0
Exits
 
0

Total Transactions

2023 Investments

Platform 2/22/2023
Platform 2/22/2023
Add-on for Cyara 3/9/2023
Add-on for Reveal 3/15/2023
Add-on for Cyara 3/31/2023
Add-on for Routeware 4/3/2023
Add-on for Routeware 6/13/2023
Add-on for Emburse 7/18/2023
Add-on for Emburse 7/18/2023
Add-on for RentRedi 8/3/2023
Add-on for Reveal 8/29/2023
Add-on for Reveal 8/15/2023

Transformative Add-ons

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Reveal acquired both Logikcull and IPRO in August, creating the first end-to-end eDiscovery platform that addresses matters of all sizes and for all legal teams, from solo legal practitioners to the largest enterprise. By integrating Logikcull and IPRO into Reveal’s ecosystem, Reveal now offers the most advanced automation capabilities in the industry.

Cyara acquired Spearline in March, creating a category leader in Customer Experience (CX) Transformation. The acquisition combines Cyara’s leadership in contact center and chatbot assurance with Spearline’s global dialing and WebRTC capabilities to deliver a compelling solution set that effectively addresses the needs of enterprises transforming their CX.

Routeware acquired Compliance Publishing in June, further solidifying its stance as a category leader in integrated technology solutions for the waste and recycling industry. Compliance Publishing extends Routeware’s mission of providing routing, billing, CRM and business management software to the waste industry, with a focus on the Medical Waste market and their unique health and safety requirements.

Emburse acquired TRIPBAM in July, strengthening the company’s position as a category leader in travel & expense management. TRIPBAM is an AI-powered platform that audits, tracks and reviews travel market data, corporate negotiated rates and supplier contracts for large enterprises. Emburse customers can now leverage data, analytics and AI to track, monitor and reduce spend associated with employee travel.

Featured Transactions​​

Realization

In January, we announced the sale of Zapproved, a category-leading eDiscovery software provider, to Exterro, a legal GRC software provider. Monica Enand founded the company in 2008 with the vision of helping the civil justice system adapt to the digital age with easy-to-use and cost-effective eDiscovery software. In 2014, K1 made its first investment in a woman-led business and was the first institutional investor in Zapproved. Today, we are excited to celebrate the company’s 10x growth over the last decade and provide liquidity to our investors. K1 retains a minority stake in the combined business.

Realization

In November, we announced the sale of Webexpenses, a provider of expense management and accounts payable automation software, to Tenzing, a private equity investor in high-growth small-to-medium enterprises across the United Kingdom and Europe. Webexpenses was our fifth company to be exited or partially exited in 2023. Founded in 2000, Webexpenses is a SaaS company headquartered in the United Kingdom with customers in over 70 countries. The company has grown into a leading player in online expense management, serving over 300,000 users across the world.

Debt Facility

The K1 Debt Capital Markets team closed a $380mm ARR-based debt facility at Emburse, financed with the support from our lending partners at PNC, JP Morgan, Silicon Valley Bank, Ally, MUFG, BHI and Wells Fargo. This debt facility is a testament to the strength of the Emburse platform, our lending relationships and the overall credit markets for recurring revenue-based lending.

Platform Investment

In February, we closed our first take-private with ELMO Software, a leading provider of cloud-based human capital management solutions across Australia, New Zealand and the United Kingdom. The company’s platform includes tools for employee onboarding, recruiting, learning management, performance management, HR information management and payroll. ELMO assists over 15,000 customers with the essential task of attracting, paying, retaining and engaging their most valuable assets: their people.

Congratulations to
Congratulations to
the 28 K1 companies
the 28 K1 companies
that made the list
that made the list

C o n g r a t u l a t i o n s     t o
t h e     2 8     K 1     c o m p a n i e s
t h a t     m a d e     t h e     l i s t

K1 Value Add

K1 Accelerate

Expanded our K1 Accelerate program, which helps develop our portfolio companies' pipelines via K1's global network of enterprise executives.

Facilitated 1000+ high-impact connections with c-level executives across multiple industries, resulting in >$6mm of bookings across the portfolio, a 50% increase YoY.

Hosted 39 networking events, a 5x increase from 2022's activity.

Summits

Hosted 850+ attendees across 6 functionally focused K1 summits. Featured impactful keynote speakers including Malala Yousafzai, Nobel Peace Prize winner & activist; Erika H. James, Dean of Wharton; Ashvin Vaidyanathan, leading Saas Executive; Barak Turovsky, VP of AI at Cisco & more.

Celebrated 89 graduates from K1’s Advanced Management Program, for a total of 429 grads since inception.

Recruiting

K1’s in-house team of 15+ recruiters helps our portfolio companies find the right candidates through outbound sourcing, from SDRs to board members, C-level roles and everything in between.

Placed 99 executives across the portfolio

Placed 278 total hires, including 48 Director and VP-level roles, adding value to our portfolio companies by sourcing top-tier talent.

Debt Capital Markets

Raised over $1bn in bank debt financing across the K1 portfolio in support of M&A, refinances, recapitalizations, working capital and investments.

Hedged 87% of our floating rate debt at an average SOFR rate of 4%.

Successfully pushed out all of our loan maturities – we have no loans coming up for maturity in 2024.

Operations

3-year CAGR of 35% across all buyouts.

28.6 million in EBITDA contribution across 11 companies for an average of 10%+ in price increases driven

The K1 CS team contributed $5M in 2023 pipeline, netting $1.4M in bookings for portfolio company Comply.

K1 Value Add

K1 Accelerate

Expanded our K1 Accelerate program, which helps develop our portfolio companies' pipelines via K1's global network of enterprise executives.

Facilitated 1000+ high-impact connections with c-level executives across multiple industries, resulting in >$6mm of bookings across the portfolio, a 50% increase YoY.

Hosted 39 networking events, a 5x increase from 2022's activity.

Summits

Hosted 850+ attendees across 6 functionally focused K1 summits. Featured impactful keynote speakers including Malala Yousafzai, Nobel Peace Prize winner & activist; Erika H. James, Dean of Wharton; Ashvin Vaidyanathan, leading Saas Executive; Barak Turovsky, VP of AI at Cisco & more.

Celebrated 89 graduates from K1’s Advanced Management Program, for a total of 429 grads since inception.

Recruiting

K1’s in-house team of 15+ recruiters helps our portfolio companies find the right candidates through outbound sourcing, from SDRs to board members, C-level roles and everything in between.

Placed 99 executives across the portfolio

Placed 278 total hires, including 48 Director and VP-level roles, adding value to our portfolio companies by sourcing top-tier talent.

Debt Capital Markets

Raised over $1bn in bank debt financing across the K1 portfolio in support of M&A, refinances, recapitalizations, working capital and investments.

Hedged 87% of our floating rate debt at an average SOFR rate of 4%.

Successfully pushed out all of our loan maturities – we have no loans coming up for maturity in 2024.

Operations

3-year CAGR of 35% across all buyouts.

28.6 million in EBITDA contribution across 11 companies for an average of 10%+ in price increases driven

The K1 CS team contributed $5M in 2023 pipeline, netting $1.4M in bookings for portfolio company Comply.

Value Creation & Continuing Education​

Past Events
Upcoming Events
Sales & Marketing Summit
March 8-10, 2023

Sales & Marketing Summit

Topics included: Accelerating growth levers for 2023, building pipeline, maximizing revenue from the customer base.

Women’s Summit
SEPTEMBER 6-8, 2023

Women’s Summit

Topics included: Cultivating executive empowerment, navigating the C-suite & building radical candor. Listen to a highlight from Erika James’s keynote here.

H2 Offsite with Dr. Benjamin Hardy
SEPTEMBER 14-15, 2023

H2 Offsite with Dr. Benjamin Hardy

K1’s H2 Offsite featured organizational psychologist and author Dr. Benjamin Hardy, who spoke about how achieving 10x growth is easier than 2x growth.

Customer Experience Summit
OCTOBER 11-13, 2023

Customer Experience Summit

Topics included: Doing more with less, driving customer expansion & AI implementation.

CXO Summit
DECEMBER 6-8, 2023

CXO Summit

Topics included: Maximizing profitability while accelerating growth, optimizing the team for peak performance & attracting and developing exceptional talent.

H1 Summit
February 26-29, 2024

H1 Summit

In February, our Sales, Marketing and Customer Experience Summit will focus on how net new acquisition while driving incremental revenue from your customer base will result in meaningful and sustainable growth.

H2 Summit
October 21-25, 2024

H2 Summit

In the second half of the year, our Product, Engineering, Finance and HCM Summit will focus on meeting evolving customer needs while maintaining a strong culture and profitable growth.

EMF
April 16th 2024

EMF

In April, the K1 Investor Relations team will host LPs in Zurich for our annual European Manager Forum.

NYCID
May 2024

NYCID

In May, the K1 Investor Relations team will host our 4th annual New York City Investor Day.

Sustainability

0
kilowatt hours generated from solar
0
trees planted to reforest 97.21 acres of land
Our Planet
Logo
LEED Gold certified office
0 %
of all eligible employees
drive electric vehicles
0
metric tons of carbon offset by sponsoring wind and biogas projects
Logo
LEED Gold certified office
0
students mentored via Youth Business Alliance & K1 Diversity Symposium
0 %
of 2023 hires were women
Our Community
0 %
of 2023 hires were minorities
0 %
of K1 employees are first-generation college students
Resilience

All K1 buyouts track their sustainability metrics

73% of our portfolio companies had a sustainability champion who handles sustainability

Community Involvement

Giving spirit

Giving Spirit on Giving Tuesday

With over 70,000 people experiencing homelessness in Los Angeles, we’ve rolled up our sleeves to directly partner with The Giving Spirit to assemble and distribute kits of essential resources and meals to those most in need. The Giving Spirit is an organization focused on providing immediate aid to people experiencing homelessness in LA.

Pea Patch Community Garden Association Partnership

K1 has committed to protect the environment and make a positive impact on local communities by partnering up with Pea Patch Community Garden Association to promote food security. By means of organic gardening through urban farms, PPGCA donates all the crops and fresh produce harvested from the K1 plots to the LAX Food Pantry in Inglewood.
Pea Patch Community Garden

YBA Field Trip

K1 hosted an office field trip and workshop for 15 bright students from Youth Business Alliance in an effort to bridge the equity gap between under-served students and careers within finance and tech. Youth Business Alliance is a dynamic organization that empowers young minds and fosters entrepreneurship by connecting classroom learning to real-world business experience.

Press & Media

Award

GrowthCap Top Women Leaders in Growth Investing 2023

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Award

LABJ Leaders of Influence: Private Equity, Investors & Advisors

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Award

Private Equity Wire ESG AAA US Awards

READ MORE
FRAMEWORK

The Art of B2B Selling

READ MORE
FRAMEWORK

Curves, Caps and Swaps: Strategies to Thrive in a Rising Interest Rate Market

READ MORE
Portfolio News

K1 Investment Management Exits Portfolio Company Webexpenses

READ MORE
Portfolio News

Rentredi Acquires eRentPayment and PaymentReport

READ MORE
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From the K1 Team

Disclosure
& Disclaimer

This update (the “Update”) does not constitute an offer to sell or the solicitation of an offer to purchase any security, and is not presented with a view to providing investment advice with respect to any security or making any claim as to the past, current or future performance thereof. K1 Investment Management, LLC (together with its affiliates, “K1”) expressly disclaims the use of this Update for such purposes. This Update is solely intended to provide general information regarding K1’s operational activities, financing capabilities and general business experience.

Portfolio companies presented herein are for informational purposes only and are intended to illustrate such historical activities. The portfolio companies included herein should not be assumed to have been profitable. Past performance is not necessarily indicative of future results. There can be no assurance historical trends will continue. K1 does not warrant the accuracy, completeness or usefulness of any information herein. Any reliance you place on such information is strictly at your own risk. K1 disclaims all liability and responsibility arising from any reliance placed on this Update or anyone who may be informed of its contents. The Inc.

Top Founder-Friendly Investors List (the “List”) is determined and maintained by Inc. Magazine. An application and a fee are required to be named on the List. The number of private equity firms that applied for the 2022 award is not known to K1. The List is not based on investment advisory activity, does not reflect the experience of any investment advisory client of K1 and is not indicative of future performance. Please note that portfolio company revenue represents a selection of ARR, Run-rate or LTM revenue based on the most recently available information and availability of the data.