KSC Ventures has recently announced the formation of a new fund entitled KSC Holdings, LLC. (KSCH)
KSCH is building a multi-discipline service organization that serves residential, commercial and industrial customers in Central Kentucky.
The five areas of focus are installation and service for HVAC, electric, plumbing and garage doors that will be supported by the fifth area, distribution.
KSCH currently owns 4 independent companies in the industrial distribution, garage door, plumbing and electrical space and is the process of acquiring an additional electrical business and multiple HVAC companies.
The current assets are strategically located in Danville and Louisville with expansion planned for Lexington in 2025 and additional Kentucky markets in 2026 and beyond.
With a long-term investment horizon, the strategy is to offer these services and operate these businesses in 5-6 growing markets in Central Kentucky. Via acquisition, organic growth, and de novo market entry, leveraging existing relationships, customers, and infrastructure, these businesses will piggyback and support one another in each market and across markets. Specifically, the wholesale distribution assets will be utilized to acquire and expand offerings to support the four areas of installation and service.
Together these companies will provide synergistic value in these markets – crossing selling work, sharing equipment for larger jobs, and combining operations under one roof. These interdisciplinary benefits are a key part of the overall thesis.
The bundle of assets under the KSCH fund are currently being restructured to one common ownership. This alignment will not only benefit the entire equity ownership across the assets, but it will benefit credit utilization and the potential of future branding. It would also allow for a clean exit in the future, should that opportunity present itself.
The acquired and targeted businesses produce 10%-20% of net cash flow annually, in defensible disciplines. The company will continue to grow the top line while maintaining and improving, where possible, the bottom line.
KSCH has engaged previous investors and will bring on a handful of strategic, accredited investors to help execute the long-term strategy. Potential investors would provide growth capital for the company, demand for the bundle of services or various other key benefits to the fund or leadership team.
Potential investors should reach out directly to either Todd or Jamie if interested.
The KSCH Management Team is rounding out and currently consists of Jamie Durham, Travis Cox, Jonathan Sawtelle, William Crenshaw and Todd Clark.
Brief Story of the Team
In early 2014, Clark and Durham formed their first holding company and purchased a central KY outpatient addiction treatment company. The initial strategy was to streamline the operations and grow the business. To strengthen the balance sheet, they brought on early investors. Through a combination of acquisitions and de novo developments, they grew the company and by the end of 2015, they were operating 20 locations in 3 states. In 2016, they began to accept insurance, which radically changed the operating model and subsequent cash flow. They took on an investment from a wealthy family office and hired a new CEO to lead the next phase of growth and development. By 2017, they began to receive interest from the private equity markets and in 2018, they sold the company to Heritage Group out of Nashville, TN. This provided an exit for the early investors along with Clark and Durham. Since the exit, the new Healthcare Company has grown to roughly 80 locations in 6 states.
In 2019, Clark and Durham formed KY Seed Capital (KSC), with a strategy of purchasing small businesses and real estate assets in the central Kentucky area. One of their first acquisitions was Danville Industrial Distributors, a 50-year-old distribution business based in Danville, KY. They completed that purchase at the end of 2019 and brought on Jonathan Sawtelle as the General Manager and Operating Partner. At the end of 2023, DID purchased G&H Rubber Supply. With this acquisition and internal growth, over the past 5 years, Sawtelle has more than tripled the size of the company. DID is well positioned to continue that growth in the future and will be part of the new KSCH platform that will supply all the trade service companies going forward.
In late 2023, KSC was rebranded as KSC Ventures (kscventure.com) and is the primary holding company for the other commercial real estate and business investments that fall outside of the KSCH investment strategy. KSC has exited many other business and real estate ventures in the past including the hotel, professional office, medical, industrial, retail, insurance and various other niche industries.
The Team
Jamie Durham, CEO, began working for a college campus ministry directly after graduating from Transylvania University. While doing full-time ministry work, he started investing in residential rental properties. By 2005 he had built a multi-million-dollar portfolio of single family and duplex properties. At that time, he left the full-time ministry to further develop his real estate holdings. In 2009, he placed his real estate holdings under professional management and transitioned to CEO of a startup healthcare company. Together Durham and Clark helped grow this company from 6 to 21 locations and more than $20 million in annual revenue.
Todd Clark, CCIM, Board Member, developed and honed his entrepreneurial business skills after graduating from Transylvania University. He was an integral part of a rapidly growing hotel company that went public. He then helped lead and grow a shared office services company that was later sold to an international strategic, publicly traded company. During this time, he obtained his KY Real Estate Broker's License, his CCIM designation, and invested periodically in commercial real estate and business ventures. In 2014 he partnered with Durham and purchased a healthcare company which scaled to 21 locations in 3 states and later sold to a private equity company in 2018.
Travis Cox, COO, built a strong work ethic and a love for problem-solving on a dairy farm in Kentucky. After earning degrees in Mathematics, Economics/Management, and Computer Science from Centre College, he spent time at Liberty National Bank, Louisville Gas and Electric, and Koinonia Computing in acquisition, sales, and IT, among other roles. He then spent nearly 24 years at Tarter Farm and Ranch Equipment, ultimately as Vice President of Operations, where he optimized manufacturing and shipping across multiple plants. Most recently, as Director of Operations at Congleton-Hacker Construction, he managed back-office and support operations, helping ensure projects are delivered on time and within budget.
Jonathan Sawtelle, General Manager and Operating Partner of Danville Industrial Distributors, a position he has held since the purchase of the business in November 2019. After graduating from Berry College in 2003, Jonathan served for five years as the Campus Director for Campus Outreach at Samford University. He then transitioned into retail management with Target, leading stores in Birmingham, AL, Denver, CO, and Lexington, KY. Following a brief role as Director of Business Development for Disruptive Nutrition, Jonathan connected with local entrepreneur Jamie Durham, expressing a desire to manage a small business that would enable him to build a strong team and serve his community. The opportunity to purchase Danville Industrial Distributors arose shortly thereafter, and under Jonathan’s leadership, the company has grown by 3x over the last five years, serving manufacturers throughout Central Kentucky.
William Crenshaw, CFO, is a seasoned finance professional, CPA, adviser, and strategist. He is a graduate of Transylvania University and Belmont University. Since 2010, he has worked in private industry and professional services – public accounting and investment banking. His focus these days is M&A execution, finance support, and strategic advisory. Having worked in detail with 400+ privately held entities of all shapes and sizes, across a multitude of industries, he draws from years of experience and a dynamic tool kit to problem-solve and add value to all his endeavors and clients. William is the Principal of Grow Solutions (advisory) and is also the President of Greener Roots (indoor farming).
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