Who Is KV Capital

[kavm]

The reason for dramatic reduction in the lead time to a new Escape is the slowdown in demand for the new camper. The Covid-fueled spurt in demand is now history . A lot of buyers who got into a camper/RV purchase without thinking it through are selling - further adding to the softening of demand due to the pull back and rising interest rates.

Mortgage brokers don't really own the mortgages (I am sure you know that). In the US, most mortgages are either sold to Fannie Mae and Freddie Mac or sliced and sold as securities like CDOs, CMOs. Not totally sure how the mortgage broker business is doing these days.

So, I am not sure how you get to the conclusion that KV Capital might be looking to sell Escape. Escape is, I guess, a business seeing softening demand and lower value than when they bought it. So, they would be selling an asset that's not exactly on a high growth path in the short to medium term.

Unless KVC is under-capitalized, it doesn't directly follow that they should be looking to sell Escape.

Like everyone said, Escape's future isn't of critical importance to the owners - particularly as post-purchase services offered by the company are minimal at best.

[HABBERDABBER]

Originally Posted by Mike G

In contrast, this spring I bought an 11 year old 19' with the idea that it would be my 'forever' trailer. It looks and feels like new.

I've had 20 year old fiberglass sailboats and a Casita that old. With some effort, both were in tip-top operating condition. Same with a nubbie 7 year old Escape.
11 years old ain't nothing.

[Jim Bennett]

Hopefully time to go camping soon, it seems folks here are becoming RV business experts.

Sorry, I just miss the old days when this forum was a fun place to share stuff about our Escape trailers.

[Ron in BC]

Originally Posted by Jim Bennett

Hopefully time to go camping soon, it seems folks here are becoming RV business experts.

Sorry, I just miss the old days when this forum was a fun place to share stuff about our Escape trailers.

And renos.

I'm with you on that. The world is what it is and getting worked up about ETI ownership etc. seems pointless. Every company has the right to operate in a way that gives them a return on their investment. If they operate in a way that turns away customers their bottom line suffers. It's up to them to operate how they see fit and if a large number of folks then don't like it they'll vote with their feet.

Ron

[WillyB]

Originally Posted by YakRV

Hi, Willy. We have a plastic folding step like this one (think we got it at Camping World or some other camp supply store):

Attachment 67834

I like the step Donna suggested better though. Might have to upgrade to that one, or a similar step from GarfatolRV that has two glow in the dark tape strips on the tread. That one is on Amazon too ($48usd for small/$64usd for large).

We have a small fold up step like that but it's still too tall for my aching knees. Had way too much fun as a kid I suppose..

[Glens]

It’s interesting to me from the perspective of how much more profitable did ETI get from huge price increases over such a short period of time. Those of us who bought pre Covid and now see a 50% plus jump in prices make it very uncertain I would even consider replacing or upgrading. I might even consider a Big Foot or air stream for the price of a new Escape.

The private equity firm is making money on ETI and when they do sell they will get a lot of money for the business.

[suncoastdancers]

With the exception of Champion Boats, Northern Lite & Off Grid Trailers are still around and producing units. Dealers for Northern Lite show a significant number of units on order but not much inventory in stock. So they are moving product. Plant is in Kelowna BC. In business over 40 years. Off-Grid I can't say but they look small volume made-to-order. Plant in Edmonton AB.

Northern Lite campers commanded a premium over a comparably outfited Escape despite not having any running gear. Put another way, the $32K CND I paid for by 2017 17B looked like a real bargain compared to a Northern Lite Camper ranging $50K CND plus. Today my 17B would cost me $50K with all my options included. That Northern Lite camper is now over $80K CND Even at these prices, there are still waiting lists.

We don't know the full capital structure and ownership of any of these companies. KV may have only part equity interest and also extend working capital for operations through another arm.

[Rossue]

Originally Posted by Rossue

My guess is they're trying to sell it. These guys have already sold 3 of the four RV companies they bought all around the same time in 2017 & 2018. They are Capitalists & that's fine with me. It is curious however that Tri-West didn't acquire Escape Trailer along with Northern Lite & Off Grid Trailers.

Another guess: Tri-West didn't acquire Escape last September when they bought Northern Lite & Off Grid Trailers because KV Capital wanted too much money for the brand they clearly hit a home run with.

From KV's help-wanted ad: "President will lead ETI in preparing the business for sale to its next owner via developing and executing sales growth strategies, de-risking the business to ensure its attractive to the largest prospective buyer pool as possible."

Hmmm- executing sales growth strategies & de-risking the business. Aren't those a bit mutually exclusive?

Tri-West could of course still become the next owner of Escape and would probably do a better job with it. Time will tell.

[MarkinVan]

Originally Posted by Ron in BC

Hang on, I'll ask my friend who today got told that his capital gains tax for selling a rental property for more than he paid for it is $600,000 and change.

Yup, we've got taxes.

Ron

Capital Gains tax in Canada works out to about 20%.

It would seem your friend sold it for over a $3 million gain?

A fair gain for him.

Happy Canada Day, a Wonderful Country!

[Ron in BC]

Originally Posted by MarkinVan

Capital Gains tax in Canada works out to about 20%.

It would seem your friend sold it for over a $3 million gain?

A fair gain for him.

Happy Canada Day, a Wonderful Country!

Not all that hard to do for those who bought rental or holding property in the late 80s or early 90s. Properties that sold for $1-200,000 then now sell for much, much more if high density can be built on them.

Yup, happy Canada Day to all. My Canadian flag is flying high.

Ron

[Jim Bennett]

Originally Posted by MarkinVan

Capital Gains tax in Canada works out to about 20%.

It would seem your friend sold it for over a $3 million gain?

A fair gain for him.
:

We have sold a few of these, the last one last year. Other than some rec land I own with my brothers, my own house is the only real estate I own. No more Mr Landlord.

The capitol gains are 50% of the difference in purchasing and selling costs. What you pay as a percentage of that in taxes is totally dependent upon your income level. Last year I took little other income putting it all off to my wife to keep in a lower tax bracket. All in all, a decent tax to have to pay on good income.

[h2owmn]

Rossue, do you know the date of that help wanted ad? IE, is it recent? Thanks.

[Rossue]

Someone posted a link to a LinkedIn job posting 6/28 on the Karl thread.

[Mike G]

Originally Posted by Rossue

Hmmm- executing sales growth strategies & de-risking the business. Aren't those a bit mutually exclusive?

Maybe that's why Karl bailed. When the higher-ups set impossible-to-meet goals, it's a good time to move on!

[escape artist]

Originally Posted by Mike G

Maybe that's why Karl bailed. When the higher-ups set impossible-to-meet goals, it's a good time to move on!

Hi: Mike G... I always thought the Captain was to go down with the ship!!! Alf
escape artist N.S. of Lake Erie

[sofmerc]

Originally Posted by escape artist

Hi: Mike G... I always thought the Captain was to go down with the ship!!! Alf
escape artist N.S. of Lake Erie

I don't think that ship is going down,,
I'm a ship Captain...

[Rossue]

Originally Posted by escape artist

Hi: Mike G... I always thought the Captain was to go down with the ship!!! Alf
escape artist N.S. of Lake Erie

Hey Alf- sink or swim!!

[h2owmn]

Rossue, thanks. I've been in the wilderness for a week, so didn't see it.
Appreciate your help.