Kingsway (KWY) investor relations material

Asset class and market opportunity

• Search funds have delivered a 35% annualized return over four decades, filling a structural gap for small business succession and offering a long runway due to demographic trends and a $4.8 trillion wealth transfer over 20 years.

• Over 2 million small businesses are expected to transition leadership in the next decade, with limited buyers and a supply-demand imbalance favoring search funds.

• The model enables talented operators to transform lifestyle businesses into growth businesses, driving outsized returns.

Unique value proposition and strategy

• Provides public, liquid access to a diversified portfolio of search fund acquisitions, avoiding double fees and illiquidity of traditional models.

• Competitive advantages include a selective operator pipeline, disciplined investment criteria, a world-class advisory board, and a tax-advantaged structure with $628 million in NOLs.

• Focuses on acquiring capital-light, recurring revenue businesses in large, fragmented industries with strong margins and low customer concentration.

Execution and results

• Completed six acquisitions in 2025, exceeding the target of three to five, and achieved over 20% EBITDA growth, with KSX now the majority of consolidated revenue and EBITDA.

• Demonstrated a successful flywheel: acquire, grow, reinvest, and repeat, with a 10x return on a prior platform and ongoing momentum in 2026.

• Targets double-digit organic growth and three to five disciplined acquisitions annually, maintaining a 30%+ IRR hurdle.