A Koch company acquired a substantial municipal leasing portfolio in 1992, marking an opportunistic investment into a new industry. Since then, Koch Financial Corporation and its affiliates have expanded their knowledge and capabilities to build a portfolio in municipal finance and trading, financial guaranty reinsurance, and collateralized debt obligations. 

MUNICIPAL FINANCE
Koch Financial enables states, counties, municipalities, school districts and other government entities to purchase assets such as computer hardware and software, telecommunications, energy management systems, and emergency vehicles. Tax-exempt leasing offers government entities an efficient and cost-effective solution to meet ever-changing financing needs.

Koch Financial and its affiliates have provided more than $4.8 billion in financing to customers throughout the United States. Part of Koch Financial's innovative approach is to connect with companies that provide equipment or services to government entities. In this way, companies can pair their equipment packages or services with the company's customer financing solutions.

IDENTIFYING AND MANAGING OPPORTUNITIES
Koch Financial is focused on growing its capabilities internally as well as searching for opportunities via investments and acquisitions. The company uses diverse origination channels and risk management capabilities to identify investment opportunities. Koch Financial and its affiliates actively manage a multibillion-dollar portfolio of municipal securities, including high-grade municipal bonds, tax-exempt notes, structured tax-exempt securities, and fixed income derivatives.

NEW INVESTMENTS
Building on its municipal and financial product strategies, Koch Financial Re, an affiliate of Koch Financial, has invested in a financial guaranty reinsurance business. Channel Reinsurance Ltd. was formed by Koch Financial Re, Ltd., Renaissance Re Holdings Ltd., Partner Re Ltd. and MBIA to provide risk transfer and capital relief to primary insurers. The new company assumed a $27 billion portfolio from MBIA, and has total claims-paying resources of about $700 million.

The group of companies, based in Scottsdale, Ariz., with offices in Chicago and New York City, include Koch Financial Corporation, Koch Global Capital, LLC and Koch Financial Products, LLC. Koch Global Capital, LLC, a Koch Financial affiliate, operates as an asset manager of collateralized debt obligations, while another affiliate, Koch Financial Products, LLC, provides credit protection to qualified buyers in the form of single-name credit default swaps, focused on investment grade corporate reference obligations.