Berkshire Hathaway alums’ shop Kanbrick nabs most of Fund I’s target

Kanbrick, led by former Berkshire Hathaway executives Tracy Britt Cool and Brian Humphrey, secured almost $200 million for a debut long-term buyout fund.

The commitments, disclosed last month in Form D documents, amount to nearly 80 percent of Kanbrick I’s $250 million target, sources told Buyouts.

Even when times are good, emerging managers face obstacles to getting the attention of LPs. In today’s fundraising market, the challenges have multiplied. Cash-constrained LPs have been reserving most of their limited allocation capital for incumbent GPs, typically at the expense of new relationships.

Kanbrick perhaps has an edge in this environment due to the pedigrees of its founders.

Britt Cool was previously the financial assistant to Berkshire Hathaway chairman Warren Buffett. Joining the business in 2009, she served on the boards of several Berkshire companies and was CEO of another, kitchenware brand Pampered Chef, according to Kanbrick’s website.

Humphrey worked with Britt Cool at Pampered Chef starting in 2015 and rose to become CFO. Before, he was an investment professional with Audax Private Equity.

Britt Cool and Humphrey launched Kanbrick in 2020 to acquire mid-market companies with more than $5 million of pre-tax profit and operating in consumer, business services and manufacturing/distribution sectors. Targets are North American family and founder-owned establishments in growing markets.

A key aspect of the strategy is its horizon, which is expected to go beyond private equity’s traditional hold period of three to five years.

In an annual letter, Britt Cool and Humphrey said, “We believe the world doesn’t need another private equity firm.” Instead, mid-market companies require “a long-term partner focused on helping them fulfill their potential.”

“Unfortunately,” they added, “many of the owners we know well have had regrets after selling their companies to a strategic partner or a private equity firm, where the primary focus is realizing synergies (ie, cost cuts) and maximizing short-term returns.”

In contrast, Kanbrick thinks “in decades, not quarters,” Britt Cool and Humphrey said. It will concentrate on backing one or two quality companies each year. When they enter the portfolio, the firm will zero-in on growth acceleration using the tools and resources of the Kanbrick Business System, a value-creation playbook.

Kanbrick already has investments under its belt. They include Marine Concepts, a designer and maker of custom boat cover systems, acquired last year, and JM Test Systems, a provider of test and measurement equipment and services, bought in February.

Along with investing, Kanbrick sponsors a free, three-month business-building program for mid-market CEOs. The next Build with Kanbrick cohort will assemble in the fall of this year.

Kanbrick did not respond to a request for comment on this story.

(This story was updated to correct Kanbrick I’s target according to new information provided by sources.)