Adam Patinkin

I'll still give you a good exit where you can retire and be happy and all of that. But you get all of these other things where your legacy is preserved and your friends still have their jobs. And it really works because then these young, hungry, talented, oftentimes post-MBA individuals come in. And they professionalize the business. Maybe they replace pen and paper with technology.

I'll still give you a good exit where you can retire and be happy and all of that. But you get all of these other things where your legacy is preserved and your friends still have their jobs. And it really works because then these young, hungry, talented, oftentimes post-MBA individuals come in. And they professionalize the business. Maybe they replace pen and paper with technology.

They go from founder-led sales to a professional business development team. And they grow the EBITDA over time. And the multiple tends to go up as well as the business gets to scale. And so the model really, really works. And that's exactly what Kingsway is doing. Kingsway has – they get 100 applicants for every seat that they have.

They go from founder-led sales to a professional business development team. And they grow the EBITDA over time. And the multiple tends to go up as well as the business gets to scale. And so the model really, really works. And that's exactly what Kingsway is doing. Kingsway has – they get 100 applicants for every seat that they have.

And then they have all the infrastructure to support these searchers as they go out, find a wonderful business to buy, and then help them grow the business. And so now over time, Kingsway has built this wonderful collection of these high quality asset light recurring revenue services businesses.

And then they have all the infrastructure to support these searchers as they go out, find a wonderful business to buy, and then help them grow the business. And so now over time, Kingsway has built this wonderful collection of these high quality asset light recurring revenue services businesses.

they keep buying them and they keep adding them to the portfolio and the EBITDA keeps going up and over time you know our view is that this can be a much more profitable and much larger company following this wonderful search fund model and and just to add one final kind of coda to a final point to it for some historical reasons the the structure of Kingsways the Kingsways corporate structure

they keep buying them and they keep adding them to the portfolio and the EBITDA keeps going up and over time you know our view is that this can be a much more profitable and much larger company following this wonderful search fund model and and just to add one final kind of coda to a final point to it for some historical reasons the the structure of Kingsways the Kingsways corporate structure

It was formerly an insurance company that almost went bankrupt and it generated almost a billion dollars in tax losses. And as a result, they have these net operating loss carry forwards that essentially mean that Kingsway can keep buying these businesses and growing its profitability and compounding at a high rate.

It was formerly an insurance company that almost went bankrupt and it generated almost a billion dollars in tax losses. And as a result, they have these net operating loss carry forwards that essentially mean that Kingsway can keep buying these businesses and growing its profitability and compounding at a high rate.

And they don't have to pay taxes for a while because they've got these net operating loss carry forwards. And so for me, what was attractive was I get to join this company that I think has a wonderful model that's the only way to invest behind search in the public markets is in Kingsway KFS. And it also has this tax advantage structure and a really wonderful management team and a great board.

And they don't have to pay taxes for a while because they've got these net operating loss carry forwards. And so for me, what was attractive was I get to join this company that I think has a wonderful model that's the only way to invest behind search in the public markets is in Kingsway KFS. And it also has this tax advantage structure and a really wonderful management team and a great board.

I mean, it's the people that matter most. And it's a great set of people. And as the flywheel is really kicking in here, I'm excited to be a part of it.

I mean, it's the people that matter most. And it's a great set of people. And as the flywheel is really kicking in here, I'm excited to be a part of it.

Yeah, so I think that our approach is bottom up. So we're looking at individual companies doing heavy amounts of due diligence, really understanding them inside and out and kind of the rifle approach where we're finding these great undervalued businesses and then buying them for the long term. But every now and then, It's not the micro that matters. It's the macro that matters.

Yeah, so I think that our approach is bottom up. So we're looking at individual companies doing heavy amounts of due diligence, really understanding them inside and out and kind of the rifle approach where we're finding these great undervalued businesses and then buying them for the long term. But every now and then, It's not the micro that matters. It's the macro that matters.

And one of those times was in inflation in 2022. I mean, if you remember that, the market was in full meltdown. It was pretty scary. CNN has a fear and greed index, and it literally registered zero on a zero to 100 scale. In other words, maximum fear. And it was all around whether inflation was out of control.

And one of those times was in inflation in 2022. I mean, if you remember that, the market was in full meltdown. It was pretty scary. CNN has a fear and greed index, and it literally registered zero on a zero to 100 scale. In other words, maximum fear. And it was all around whether inflation was out of control.

And so we did our homework right in these moments when the macro is all that matters, we will do our work around the macro and really try to understand it in a deep way. And we did our homework, built a model of, of CPI of, of inflation, uh, the main gauge used by the federal reserve. And we came to the conclusion that inflation was not out of control.

And so we did our homework right in these moments when the macro is all that matters, we will do our work around the macro and really try to understand it in a deep way. And we did our homework, built a model of, of CPI of, of inflation, uh, the main gauge used by the federal reserve. And we came to the conclusion that inflation was not out of control.