One of the newest investment divisions of Koch Industries Inc. is off to a billion-dollar start — with no plans to slow its capital deployment anytime soon.
Koch Strategic Platforms (KSP) has been operating since September as one of the divisions under the internal umbrella of Koch Investments, which was itself launched last year and is run by former company CFO Steve Feilmeier.
And, says KSP President David Park, there has been no waiting around to get available investment dollars behind companies Wichita-based Koch believe hold promise.
Having already deployed more than $1 billion, Park says KSP hopes to invest up to $3 billion by the end of the year.
But, as the name “strategic platforms” would suggest, KSP’s activities are targeted.
“KSP is a thematically driven, growth-equity investor,” Park says.
Whereas another investment division at the company — Koch Disruptive Technologies — would be more akin to venture capital, KSP is coming in at a later stage of a company’s growth.
Park says the division is looking at four primary sectors for its investment activity.
Those are computing and connectivity, health care, industrial automation and industrial transformation — as highlighted by its recent backing of EVBox, which makes charging stations for electric vehicles.
The broad marching orders, Park says, is to find “newer-economy companies in industries with growth tailwinds.”
But there also needs to be more than just financial opportunity, he says, as KSP is looking for businesses that can benefit Koch with its services or technology and that Koch can also benefit with its own existing expertise.
For example, as part of the deal with EVBox, Koch will examine installing the charging stations at its locations while also leveraging its own capabilities and connections to help the business expand with other new customers around the globe.
As for how KSP works with the five other divisions under Koch Investments, Park says it might be best visualized by picturing the Olympic rings.
While each has their own domain, he says, they also each have a point where they overlap and connect. All are working to the same ultimate goal: To bring mutually beneficial ideas, businesses and leaders into the fold at Koch.
Park, who has been with Koch for 26 years, says KSP — which has offices in Wichita and Atlanta — will leverage the company’s long-standing relationships in the capital market to continue to identify the businesses and founders that fit the bill for its investment activity.
And while that will mean leaning on its braintrust in Wichita, it could also mean future direct investment locally.
“There may be opportunities in Wichita,” Park says. “This presents a great opportunity for businesses in Wichita to impact businesses around the globe.”
