Friday, February 19, 2016

Keller Capital by David Phillips – Venture Capital Profile

Keller Capital is the private investment arm of Gary Keller, co-founder of Keller Williams Real Estate International, and a few select partners.  As a family office, we are active in real estate community as well as growth capital for Texas based businesses.

What do you look for in potential investments?

Most important to us is to do business with founders and teams with a track record of integrity, intelligence and drive. Keller Capital looks for businesses in the basic industries with strong moats.  We evaluate investments primarily by looking at free cash flow, risk level and cash on cash returns.

How do you invest?

We provide growth capital for Texas based businesses with $2M to $50M in revenue.  We prefer to write $2M to $5M checks.  We don’t need control.  We don’t need a short-term liquidity event so we don’t push for a quick merger/acquisition.  We bring a long-term partner approach to the process. We do prioritize the return of capital and pursue deal structures with this in mind.

What sectors do you look at?

We are industry agnostic.  Our rule of thumb is that we need to be able to understand it. And if you can’t explain your business to a 10 yr old, it’s probably too complex for us. 

What else do you bring to the investment?

Three things: (1) a long term partner approach, (2) a hiring expertise and (3) Gary as a mentor or advisor. And obviously we have a real estate expertise that can be helpful from time to time.

How do you syndicate deals?

We will from time to time. We are open to syndicate deals with other groups—mostly family offices with whom we have a relationship.  

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