Investor Relations

Investment Strategy

Investment Strategy

KRM22 IS A SPECIALIST SOFTWARE INVESTMENT BUSINESS LED BY INDUSTRY EXPERTS, WITH AN INVESTMENT FOCUS ON RISK MANAGEMENT SOFTWARE AND TECHNOLOGY PREDOMINANTLY FOR CAPITAL MARKETS.

KRM22 envisions a world in which capital market organisations operate at an optimal threshold of risk to improve alpha and drive increasing profits.  It is our mission to deliver a Global Risk Platform that brings increased visibility of risks to CEOs and senior executives while simultaneously lowering the cost of risk management systems to capital market organisations.

THE KRM22 GLOBAL RISK PLATFORM (‘GRP’)

The GRP combines multiple software applications in one place for the customer, allowing single-sign-on and integration of multiple operational risk tools.

The KRM22 GRP will be delivered as a SaaS offering and will generate recurring revenue.

STRATEGY

To deliver the GRP, we will:

  • Invest in businesses with specialised risk management software and subject matter expertise that deliver SaaS and recurring revenue (or those that we can quickly convert to our model);
  • Develop the underlying technology of the GRP and add to that our own Enterprise Risk applications; and
  • Establish partnerships with third-party applications to distribute those products on a revenue-share model.

SPECIALISED RISK MANAGEMENT BUSINESSES

In capital markets, there are a multitude of software products provided by small businesses who have deep subject matter expertise but face challenges to scale up to a large market presence.

By bringing such businesses into the KRM22 group:

  • KRM22’s customers will gain access to quality products, often with more flexible technology versus customers’ incumbent applications;
  • The acquired businesses themselves will solve their scaling challenges and gain cross-selling opportunities within the KRM22 customer-base; and
  • KRM22 will accelerate its GRP product offering and the breadth of its customer base, thereby accelerating the potential generation of investor returns.

The functionality acquired from the applications we invest in will be integrated on to the GRP in progressive steps.  In parallel, we will continue to generate new sales in each acquired business and leverage the cross-selling opportunities that we will generate.

INVESTING POLICY

KRM22 seeks to invest in businesses with some, or all, of the following features:

  • are revenue generating and have a customer base;
  • have or are developing a desirable technology or software offering, principally within risk management;
  • have management with particular skills or sector expertise; and
  • where we believe that there are good growth opportunities through strategic and operational guidance and providing a platform to scale.

ENTERPRISE RISK APPLICATIONS

The KRM22 Enterprise Risk Applications include a Risk Cockpit that will deliver a dashboard to customers that shows them “red-amber-green” risk traffic lights across their business in real-time.  The best analogy is that of an airplane cockpit, allowing the pilot to see the status of all flight functions at all times in flight.

The Risk Cockpit is one native application that KRM22 is developing internally for the GRP.  It will be configurable by each customer and relevant to all our customer base, whether acquired through investment or organically.

DISTRIBUTION OF THIRD-PARTY APPLICATIONS

On the GRP, KRM22 will also make available third-party specialised risk management applications so that a customer can access additional solutions from our single platform.  This simplifies real-time risk management for the customer and offers a route to market for those application-providers. KRM22 will generate revenue through these partnerships on a revenue-share basis.