Kingsway (KWY) Small-Cap Virtual Conference summary

Strategic overview and asset class

• Employs a public search fund model to acquire and grow asset-light, profitable B2B and B2C service businesses with recurring revenues and strong margins.

• Focuses on compounding long-term per-share value through a decentralized management model and tax-advantaged structure.

• Targets businesses with $1M–$3M EBITDA, acquiring at 4x–6x multiples, using a 50/50 debt-equity split.

• Benefits from a massive intergenerational wealth transfer, with over $4.8 trillion in net worth changing hands and 2 million small businesses expected to transition in the next decade.

• Offers public, liquid access to a traditionally illiquid, high-return asset class, avoiding double fee layers and providing daily liquidity.

Competitive advantages and operational model

• Maintains a selective operator recruitment process, with over 200 qualified applicants for Operator in Residence roles in the past year.

• Adheres to strict investment criteria: recurring revenue, low customer concentration, strong margins, capital-light, and consistent profitability.

• Supported by a world-class advisory board, including leaders with deep experience in capital allocation and operational excellence.

• Holds $620M in net operating loss carryforwards, sheltering future earnings and accelerating compounding.

• Strategy centers on acquiring, improving, and reinvesting in businesses, creating a compounding flywheel of talent and capital.

Recent performance and portfolio development

• Completed six acquisitions in 2025, exceeding the target of three to five, and achieved portfolio LTM EBITDA of $22M–$23M as of June 2026.

• All acquisitions met a 30%+ IRR hurdle and were acquired at mid-single digit EBITDA multiples.

• KSX, the search fund platform, now constitutes the majority of consolidated revenue and EBITDA, marking a successful pivot from legacy insurance.

• In 2026, delivered record quarterly revenue and EBITDA, executed disciplined M&A, and reiterated double-digit organic growth targets.

• Portfolio includes 15 businesses across B2B services, skilled trades, healthcare, IT, and extended warranty, all with high recurring revenue and low capital intensity.