Raquel Palmer, managing partner, KPS Capital Partners, is one of 36 dealmakers named in Mergers & Acquisitions’ 2019 Most Influential Women in Mid-Market M&A. Click here for the full list. This year, we asked the dealmakers to tell their stories in their own voices through Q&As.
How did you get into dealmaking?
I met my partners in 1994, prior to our firm being known as KPS Capital Partners. We were employing our current same strategy of operational improvement at manufacturing and industrial businesses, without a dedicated pool of capital. Three years later we raised our first institutional fund.
How has a mentor helped your career?
When I started my career in 1994, there were unfortunately not many women to turn to as mentors. I have a strong work ethic that I attribute to the hardworking women in my family, but in terms of professional mentors, there have been no women. I have always relied on my current partners, Michael Psaros and David Shapiro, for guidance and advice. We grew up in the industry together and their support has always been key to my growth and development. They have always treated me as an equal even when I was much younger, and have always been willing to brainstorm on any investment idea and give advice without feeling the need to step in or intervene. They continued showing their support by promoting me to Chairman of the Investment Committee and most recently in making me a Managing Partner alongside them.
What is your current role?
I am Co-Managing Partner of KPS Capital Partners and Chairperson of its Investment Committee. I serve on the Board of Directors of the following KPS portfolio companies: DexKo Global (Chairman), International Equipment Solutions (Chairman), C&D Technologies, Chassis Brakes International Group, TaylorMade Golf and Winoa. I have served on the Board of Directors of 23 former KPS portfolio companies.
Describe your influence on the middle market.
KPS Capital Partners’ reputation and ability to see value where others do not provides a critical and unique strategy to the middle market. We have acquired many companies and transformed them through operational improvements, strategic acquisitions, market repositioning, management improvement and investment in manufacturing footprint. We have created significant value for our investors through this strategy, which is evident in the four exits KPS announced in 2018, three of which I led: Electrical Components International (Palmer), American & Efrid, Expera Specialty Solutions (Palmer), International Equipment Solutions Attachment business (Palmer).
How do you support women?
An important focus of our recruitment efforts is to try to bring more women into the firm. I personally meet with every woman who makes it through our initial interviewing process and highlight what makes our firm unique. It absoluely helps that I am a Managing Partner of KPS Capital Partners and have balanced this career with also having three children. We are very proud that we have several other women in senior positions at our firm: a Vice President on the investment team, our Chief Financial Officer, and our Head of Investor Relations & Marketing. I host a firm wide barbeque at my home every summer, inviting significant others and children, so that all of our employees see the importance of family and balance at KPS. And I take the women in our firm out to lunch once a quarter to keep the less formal lines of communication open and to let them know I appreciate them and their contributions.
What is your advice for women?
First, find a firm where you will fit in culturally. You will spend more waking hours with these people than your family so make sure they are people that you respect and like. Second, work hard. Gender becomes irrelevant if you are working harder than your peers and delivering great analysis, above and beyond what is being asked of you. Lastly, act like an owner from day one. Even in a junior role, treat every dollar that you considering investing as if it were your own.
When you’re not making deals, what is your favorite thing to do?
My favorite thing to do when I am not working is spending time with my husband and kids. We have two teenage daughters and an eleven year-old son. My daughters are at a great stage of life, and I love seeing them navigate these teenage years, although I am sure they are getting tired of the “wisdom” I try to impart. In addition, my husband Jeremy is in the travel industry so we have had many amazing adventures together as a family, most recently in Thailand and Africa.
What other career path might you have chosen?
I truly love working with companies to make them better. I believe that if I didn’t do exactly what I do now, I would have found my way to a career that allowed me to directly impact a company and help improve it.
