KDI Capital Partners’ name comes from its three core operating principles: Knowledge, Discipline, and Integrity. Below we highlight some of the key tenets of each of these founding beliefs.
Invest in business models and companies where the investment team has considerable experience and coverage.
Employ proprietary Leveraged Buyout (LBO) valuation model to assist in forecasting and comprehensive financial statement review.
Confer with industry experts to enhance due diligence efforts in conducting primary research.
Focus on great businesses, which incorporate the following characteristics – growth, predictability, barriers to entry, high returns on capital, strong management teams, and efficient capital allocation.
Invest in a limited number of outstanding opportunities – generally 15 – 25 companies.
Adhere to a strict buy-sell price discipline, which is based on a private market valuation derived from our proprietary LBO model.
Evaluate opportunities through the perspective of the private business owner with a long term view.
Mitigate the risk of capital impairment with a willingness to hold significant amounts of cash and write call options against positions to create downside protection when risk/reward dynamics are unfavorable.
Align client and principal interests through significant co-investment by principals.
Seek to invest in management teams that exhibit a history of prioritizing strong corporate values.
Commit to the highest standards and transparency in client relationships.
KDI is committed to reducing the risk associated with equity investing. To achieve this objective and to differentiate KDI as the manager of choice, the firm has been guided by an investment philosophy and has utilized an investment process characterized by:
Commitment to value investing principles
Superior knowledge of focus market sectors and potential portfolio companies through extensive due diligence
Disciplined adherence to buy and sell parameters developed through comprehensive financial and qualitative analysis
One of the key philosophies of KDI is a belief that the principals should invest side by side with the clients.
The history of KDI dates to 1991 when Managing Partner John Day formed a partnership with Investors Management Corporation (IMC), the parent company of Golden Corral Corporation, to invest in publicly traded companies. Over time, the partnership achieved impressive returns and attracted interest from outside investors.
In 1996, Maynard Capital Partners, LLC (MCP) was formed to invest in public equities for investors outside of the IMC organization. The MCP name reflected the founding involvement of James Maynard, then Chairman and CEO of IMC and Golden Corral.
As MCP continued to enjoy attractive investment results, the firm grew in terms of its client base, assets under management and market coverage. In 2004, Sheldon Fox joined the firm and became a partner in 2007. Also, in 2007, MCP changed its name to KDI Capital Partners, LLC to highlight the firm’s core operating principles: Knowledge, Discipline and Integrity.
Today, John Day and Sheldon Fox are the majority owners of KDI with IMC retaining a minority share.
Meet Our Team
KDI is a registered investment advisor based in Raleigh, North Carolina. The firm’s history dates back to 1991 and is predominately employee-owned. Learn more about our team below.
THE PARTNERS at KDI
John M. Day, CFA
John has over 25 years of professional investment experience. He joined Investors Management Corporation (IMC) in 1990. Since 1990, he has had overall responsibility for IMC’s partnership investments in publicly traded securities, along with the formation and development of KDI. John graduated from Eastern Illinois University in 1976 and began his professional career in 1976 as a CPA with KPMG, LLP. In 1980, he received an MBA from the University of North Carolina and then joined Carolina Securities Corporation in Raleigh, where he worked for 10 years. In 1984, John earned the designation of Chartered Financial Analyst.
Sheldon M. Fox
Sheldon joined KDI Capital Partners in 2004, after serving almost five years as chief financial officer of two bank holding companies, CCB Financial Corporation and its’ successor by merger National Commerce Financial. Sheldon is a CPA and spent the first 16 years of his professional career with KPMG, LLP in Raleigh. He specialized in serving companies in the financial services industry and was admitted to the firm’s partnership as a tax partner in 1993. Sheldon earned an undergraduate degree from Duke University in 1981.
THE TEAM at KDI
Client Services and Trading Coordinator
Shannon joined KDI Capital Partners in 2001 and has performed several administrative and financial positions within the firm. Shannon currently serves as client services and trading coordinator for the firm and completes all trading activity for all KDI client accounts. Shannon graduated magna cum laude from East Carolina University and is currently an MBA candidate at East Carolina University’s College of Business.
Chief Compliance Officer
Prior to joining KDI Capital Partners in 2004, Beth worked with HBO and Company as the Director of Investor Relations and in various finance positions for six years. Beth graduated from the University of North Carolina in 1989 and earned an MBA from Georgia State University in 1993.
Colin M. Kelly
Prior to joining KDI Capital Partners in 2012, Colin was an associate in Square 1 Bank’s Structured Finance group where he focused on providing debt capital to software and business services companies. During his tenure at Square 1, Colin underwrote over 60 approved transactions representing approximately $350 million of total potential liability. Colin’s professional experience also includes time as a proprietary equities trader at Schonfeld Group where he specialized in short term, event driven investments across a variety of industries. Colin graduated from the University of North Carolina in 2007 and received his MBA from Cornell University’s Johnson Graduate School of Management in 2015 where he was a Roy H. Park Fellow.
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