KPE Finds Investor, CEO Steps Down

KPE has found a new investor, one that has restructured the troubled i-shop in the hope of an 11th-hour turnaround.

Second Frontier Capital, the VC arm of The Recognition Group, has bought out two of KPE’s investors, Clarion Capital and Wasserstein Ventures. The New York-based venture capital firm now owns a third of the company, while Grey and KPE’s employee shareholders each own a third, said Kaleil Isaza Tuzman, partner at the Recognition Group.

“With a mixed shareholder base, it was difficult to get a long-term strategy in place,” Tuzman said, referring to Clarion and Wasserstein’s past involvement.