Overview
Watermill Management Company, LLC (hereinafter “WMC” or “firm”) is a SEC-
registered investment adviser with its principal place of business in Boston,
Massachusetts. The firm has been investing under the name Watermill Management
Company since 2002. Prior to 2002, investments in industrial businesses were made
through HMK Enterprises Inc., a Karol family holding company started in 1978, which
continues to be an active investor in the firm’s Fund investments.
The principal owners of WMC (25% or more ownership) are as follows:
Steven E. Karol
Julia D. Karol
WMC provides investment management services to private equity funds and certain
parallel co-investors (hereinafter collectively, "the Funds"). The Funds invest generally,
but not exclusively, in private, illiquid securities. Most of the time, each Fund invests in
a specific portfolio company or a group of portfolio companies. WMC does not offer or
provide securities brokerage services.
WMC manages Fund investments in various companies offering a wide spectrum of
services. For each Fund, WMC generally identifies prospective portfolio company(ies)
(and possible add-on acquisitions to portfolio companies) and then performs due
diligence and considers structures and pricing, works closely with portfolio companies to
provide strategic, operating, marketing and financial advice and identifies opportunities
to realize the value of such investments. The investment objective of the Funds is to seek
long-term capital appreciation.
The Funds invest primarily in the equity securities or interests of private companies and
typically seek majority control positions, in some cases with other co-investors. The
Funds acquire investments directly and in transactions involving third parties, including
traditional investment banks and brokers.
The Funds are not required to register under the Securities Act of 1933 or the Investment
Company Act of 1940 in reliance upon certain exemptions available to issuers whose
securities are not publicly offered. WMC manages the Funds on a discretionary basis in
accordance with the terms and conditions of each Fund's offering and organizational
documents.
ASSETS: As of December 31, 2023, WMC’s regulatory assets under management is
$212,874,753, all of which is managed on a discretionary basis. WMC does not manage
any assets on a non-discretionary basis.
IMPORTANT ADDITIONAL CONSIDERATIONS: The information provided herein
merely summarizes the detailed information provided in each Fund’s offering and
organizational documents. Certain of the Funds are closed and are not admitting new
investors. Current Fund investors and prospective investors in any new Fund launched
by WMC should be aware of the substantial risks associated with investment as well as
the terms applicable to such investment. This and other detailed information is provided
in the appropriate Fund offering and organizational documents.