Investment Criteria

Koa Capital Partners invests in Hawai‘i companies with great potential and strives to create long-term value for shareholders, managers, employees and customers. Our goal with each investment is to help management grow revenue and earnings by: expanding sales channels, improving operations, identifying and recruiting talent and providing hands on, real-world strategic insights along with capital for add-on investments.

Investment Types

We can invest in both equity and debt but our focus is mainly on equity investments. We tend to like simple transactions and try to keep the debt component to any deal at a minimum.

Investment Parameters

Koa targets companies in the state of Hawai‘i with some or all of these characteristics:

  • Revenue of $3-$30 million
  • EBITDA (profits) of $500k - $5 million
  • A history of profitability
  • A competitive advantage in their industry
  • Recurring revenue
  • Net profit margins greater than 10%

Industry

We are focused on business services, commercial services, health-related and light-industrial.

We do not invest in start-ups, real estate, most retail, restaurants or manufacturing.

Financial Position

We focus on companies that are cash flow positive with a history of revenue and cash flow growth. We will invest in turn-around situations as long as the company’s current problems are identifiable and the company’s business fundamentals are sound.

Investment Size

We target equity investments of $3-$10 million. For investments that require larger equity commitments we have an extensive network of capital resources at our disposal.

Control

Koa invests primarily in majority, control positions. We can and will invest in a minority position if we see a clear path in the future to a majority position.

Management

Koa offers company management an opportunity to share in increases in equity value through stock options or other forms of equity incentives. We also encourage management to participate in an equity position and make their option to invest a priority.