For over 17 years Kormendi \ Gardner Partners (“KGP”) has advised clients on complex financial matters and has designed and implemented sophisticated transactional structures based on Aligned Economic Incentives (“AEI”). While the identification and alignment of economic incentives has been at the core of all transactions designed by KGP principals throughout their 25-year history together, they first formally defined the AEI transaction model in 1993 when its principals were retained by the Resolution Trust Corporation (“RTC”) to help solve issues related to the Savings and Loan Crisis.
At that time KGP principals structured multiple innovative RTC transactions, including the only two Asset Management and Disposition Agreement (“AMDA”) Partnerships: Mountain AMD L.P. and Brazos Partners LP, which together were responsible for the disposition of approximately $3.7 billion book value of assets and resulted in unlevered IRRs to the U.S. government of 27% and 25% respectively. KGP also designed, structured and executed the Nonperforming Loan (“NP”) Series transactions which were responsible for the disposition of approximately $537 million book value of assets and resulted in an unlevered IRR to the U.S. Government of 25%.
KGP has since advised many public and private sector clients on complex financial issues and transactions and has designed and negotiated sophisticated transactional structures based on the principles of the AEI model. Types of transactions that KGP have closed include:
ASSET DISPOSITION / PIPELINE SALES
KGP has designed innovative transactional structures for asset sales by governmental agencies and private corporations, in some instances taking equity stakes in transaction performance, while providing advisory services throughout implementation of the transaction. Representative engagements include Department of Defense transactions Commercial Venture I, Commercial Venture II and Scrap Venture.
KGP has designed and closed pioneering privatization initiatives including the privatization of Military Family Housing at Kirtland Air Force Base, and continues to support these privatization efforts as noted under Representative Engagements. KGP is also currently advising the Department of Veterans Affairs (“VA”) on the Enhanced Use Lease (“EUL”) transactions of VA assets to private developers.
PARTNERSHIPS AND JOINT VENTURES
KGP has designed, using the AEI model, many successful partnerships including the AMDA Partnerships and NP Series transactions mentioned above, which created an incentive aligned partnership between public entities and private investors.
In addition to transactional services, KGP draws on years of academic and transactional experience using sophisticated financial analysis to provide the following investment banking services:
FAIRNESS & VALUATION OPINIONS FOR THIRD-PARTY TRANSACTIONS
KGP implements the principles of modern scientific finance to provide fairness and valuation opinions of both tangible and intangible assets for a variety of transactions, including:
- Mergers and acquisitions
- Shareholder buyouts
- Goodwill and intangible asset impairment
- Estate issues