Michael Psaros - The Buy and Build Machine at KPS Capital Partners

Michael Psaros didn't learn about the power of capital in a textbook; he saw it firsthand in the 1980s as the steel industry collapse threatened to extinguish his hometown of Weirton, West Virginia, which ultimately led him on to a career in private equity.  Michael Psaros is the Co-Founder and Managing Partner of KPS Capital Partners, a private equity firm that invests in manufacturing and industrial companies worldwide. Most of Michael's deals involve the surgical extraction of non-core businesses from global giants. We break down the mechanics of the corporate carve-out, why KPS runs a highly concentrated portfolio of only ten platform companies per fund, and their buy and build strategy that has transformed failing industrial divisions into global leaders. Michael Psaros is the Co-Founder and Managing Partner of KPS Capital Partners, LP, a private equity firm focused on making controlling equity investments in manufacturing and industrial companies worldwide. He serves on the firm's Investment Committee and Management Committee. Through its affiliated management entities, KPS manages the KPS Special Situations Funds, a family of private equity funds with approximately $19.5 billion in assets under management.  KPS portfolio companies collectively generate approximately $21.2 billion in annual revenue, operate 202 manufacturing facilities in 21 countries, and employ about 55,000 people worldwide. Michael Psaros previously worked as an investment banker at Bear, Stearns & Co., Inc. He earned a B.S.B.A. in Finance from Georgetown University and studied at Sophia University in Tokyo, Japan. He currently serves as Vice Chair of Georgetown University's McDonough School of Business and on the Advisory Board of the University's Endowment, and formed the Psaros Center for Financial Market s and Policy there. Please enjoy my conversation with Michael Psaros. KPS website:  https://www.kpsfund.com/ If you like these discussions, please subscribe or leave a review. NOTE: This podcast is for educational and entertainment purposes only. Anything said by the guests or host should not be construed as legal or investment advice. Thanks for listening. Joe Reilly is the head of Circulus Group, a family office network, and the host of The Inheritance Podcast. FOLLOW JOE: https://twitter.com/joereillyjr WEBSITE: https://circulus.substack.com/ INHERITANCE PODCAST:   https://podcasts.apple.com/us/podcast/the-inheritance-podcast/id1644964 If you like this show, leave us a rating or review.  I appreciate it.   S5E5 ©2026 Joe Reilly