Who Is KV Capital

[Rossue]

After reading comments about Inventory Units as well as learning the lead times for new orders have dramatically shortened I wondered who KV Capital- the owner of Escape Trailers is and found some interesting facts.

The original company was formed in 2006 and engaged in Mortgage Lending. their name back then was The Mortgage Corner. In 2010 they rebranded as KV Capital.
This was their business until 2017 when they started KV Private Equity Fund I.

In May 2017 they bought Northern Lite.
In October 2017 they bought Off Grid Trailers.
In July 2018 they bought Escape Trailer.
In October 2018 they bought Campion Boats.

In August 2022 they shut down Campion Boats and liquidated all the equipment and supplies and listed the land and 104,000 sq.ft. building for 14.9 Million. KV Capital says they have plans to re-locate the business and resume building boats under the Campion nameplate through a contract manufacturing arrangement with an as-yet undetermined partner.

In September 2022 KV Capital divests Northern Lite & Off Grid Trailers to Tri-West Capital-founded in 1998 and has a much larger portfolio of Funds with some 28 different companies across a wide range of industries.
https://triwest.ca/portfolio/

So what about Escape Trailer's prospects? Seems like the Mortgage Lending Business is falling significantly- From PR Newswire:
"Lenders issued a total of 1,518,933 residential mortgages in the fourth quarter of 2022 - the lowest number since the first quarter of 2014. The latest figure was down 24.5 percent from 2,010,609 in the third quarter of 2022 and down 55.2 percent from 3,390,801 in the fourth quarter of 2021.Mar 2, 2023."

I see KV Capital re-launched their Residential Mortgage Brokering in 2021 and in 2022 divested 3 of the 4 Recreational products mfg's they purchased in 2017/2018.
https://www.kvcapital.ca/about

Thoughts?

[John in Santa Cruz]

What happens is what happens, nothing we can do about it. Glad I got my trailer from before they changed hands, Escape going away won't have any impact on my experience.

[Escape_19]

If they do sell off...maybe Reace and Tammy will purchase it back.....hmmm

[Ron in BC]

Originally Posted by Escape_19

If they do sell off...maybe Reace and Tammy will purchase it back.....hmmm

They might have nightmares just thinking about that.

Nothing ever stays the same and as the saying goes, you can't go home again.

Ron

[WillyB]

Began working for a company in the Private Equity's portfolio about 1 year after their purchase for $75M. 4 years later after cutting all costs by 25% across the board and raising prices 25% they sold the company for $125M.

$50M profit turn is 5 years is just what they do.

[Mike G]

One never knows. Here's a tale for you. I'm self employed for the last 30 years, but my 'merchandise supplier' hired me and treated me in some ways like an employee (just not in the ways that would make them have to re-classify their reps and pay benefits). They were a fledgling company when I joined, less than a year old, and they grew rapidly. After about a decade the founders sold the business to Readers Digest for $350M. RD management wasn't too swift (to say the least) and their warehoused inventory got way out of hand while sales declined. As a result, less than a decade later one of the founders bought the company back from RD for $17.5M, or 5 cents on the dollar! Such are the fortunes of some holding companies when they don't understand the business they buy. Not saying this applies to the situation at hand... just thought you might be entertained by the story.

[oldwave]

Very interesting. The one certainty in life is change.

[escape artist]

Hi: All... There are Trailers and then there are Trailers!!! Alf
escape artist N.S. of Lake Erie

[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.

[Rockhead]

Does Canada have taxes A tax right off some how just guessing

[Ron in BC]

Originally Posted by Rockhead

Does Canada have taxes A tax right off some how just guessing

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

[hugh]

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.

Yeah, makes you wonder what the Escape balance sheet is looking like these days.

[Selkirk]

Originally Posted by Rossue

It is curious however that Tri-West didn't acquire Escape Trailer along with Northern Lite & Off Grid Trailers.

Probably because KV believes there is still growth potential for ETI. My guess is that Northern Lite and Off Grid Trailers target more niche markets that limit their ultimate size/profitability. Mainstream "premium" towable RVs represent a much bigger market for ETI to expand into.

I just hope that when ETI does eventually get sold off, that it:
- Remains a Canadian-based business delivering a Canadian-produced product. I can see this being a big challenge considering the costs to run a manufacturing plant in the BC lower mainland....and the location of most end-customers.
- Is not acquired by one of the "Big 3" RV conglomerates.

[JohnK]

I don't remember RVtravel.com ever paying much attention to molded fiberglass trailers. However in today's edition they feature the 21C/21NE comparison video starring ETI "employees" Karl and Samuel. Any speculation as to how RVtravel.com may have learned about the video?


https://www.rvtravel.com/review-fibe...us-e21ne-2097/

[peter]

We have been dealing with a capital gain tax as well. All I can do is advise is get a good accountant He was able to work his magic and reduced out taxes owed by half. Good luck We too live in BC.

[Ron in BC]

Originally Posted by JohnK

Any speculation as to how RVtravel.com may have learned about the video?

https://www.rvtravel.com/review-fibe...us-e21ne-2097/

Most companies send out PR releases hoping publications will use them. More publicity is always good for the bottom line.

Ron

[escape artist]

Originally Posted by JohnK

I don't remember RVtravel.com ever paying much attention to molded fiberglass trailers. However in today's edition they feature the 21C/21NE comparison video starring ETI "employees" Karl and Samuel. Any speculation as to how RVtravel.com may have learned about the video?


https://www.rvtravel.com/review-fibe...us-e21ne-2097/

Hi: JohnK... Maybe it's Karl's way of warding off the inevitable. Private Equity Partners want returns... Lots of 'em!!! Alf
escape artist N.S. of Lake Erie

[Patandlinda]

Originally Posted by Rossue

After reading comments about Inventory Units as well as learning the lead times for new orders have dramatically shortened I wondered who KV Capital- the owner of Escape Trailers is and found some interesting facts.

The original company was formed in 2006 and engaged in Mortgage Lending. their name back then was The Mortgage Corner. In 2010 they rebranded as KV Capital.
This was their business until 2017 when they started KV Private Equity Fund I.

In May 2017 they bought Northern Lite.
In October 2017 they bought Off Grid Trailers.
In July 2018 they bought Escape Trailer.
In October 2018 they bought Campion Boats.

In August 2022 they shut down Campion Boats and liquidated all the equipment and supplies and listed the land and 104,000 sq.ft. building for 14.9 Million. KV Capital says they have plans to re-locate the business and resume building boats under the Campion nameplate through a contract manufacturing arrangement with an as-yet undetermined partner.

In September 2022 KV Capital divests Northern Lite & Off Grid Trailers to Tri-West Capital-founded in 1998 and has a much larger portfolio of Funds with some 28 different companies across a wide range of industries.
https://triwest.ca/portfolio/

So what about Escape Trailer's prospects? Seems like the Mortgage Lending Business is falling significantly- From PR Newswire:
"Lenders issued a total of 1,518,933 residential mortgages in the fourth quarter of 2022 - the lowest number since the first quarter of 2014. The latest figure was down 24.5 percent from 2,010,609 in the third quarter of 2022 and down 55.2 percent from 3,390,801 in the fourth quarter of 2021.Mar 2, 2023."

I see KV Capital re-launched their Residential Mortgage Brokering in 2021 and in 2022 divested 3 of the 4 Recreational products mfg's they purchased in 2017/2018.
https://www.kvcapital.ca/about

Thoughts?

Hi Ross ! Really not surprised though . Glad we purchased with original company . After all the rv’s we have owned this one is the last one for us . Pat

[Mark James]

Excellent research. With private companies like this change is inevitable. Let’s just hope that the original manufacturing. concepts continue to apply.

[Mike G]

Originally Posted by Patandlinda

Hi Ross ! Really not surprised though . Glad we purchased with original company . After all the rv’s we have owned this one is the last one for us . Pat

Exactly. In 2011 I bought a new KZ trailer with the idea that it was a cheap rv that wouldn't last long. I sold it in 2014 for about 2/3 of what I'd paid. The window valances kept falling off because they only screwed into a super-thin layer of wood and behind that some foam. And shortly after I sold it, the new owner reported that the roof had started leaking at a side seam.

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.