Koch Industries is one of the largest private companies in the US, with diversified businesses in energy, commodities trading, finance, and consumer products. However, given its private ownership structure, investing directly in Koch Industries stock is impossible for regular investors. This article provides an overview of Koch Industries’ ownership, business operations, and future outlook, as well as alternative ways for investors to gain exposure to the company and its growth prospects.
Koch Industries is a private conglomerate fully owned by the Koch family, making direct investment unavailable
As one of the largest private companies in America, Koch Industries is fully owned by Chairman and CEO Charles Koch and the Koch family. The company does not trade shares publicly on the stock market and is not beholden to public shareholders. Since Charles Koch owns the majority of Koch Industries equity, there is no avenue for external or minority shareholders to directly invest in the company.
Koch Industries continues to expand its energy, commodity trading and consumer brands holdings
Despite being private, Koch Industries remains highly ambitious in expanding its businesses which span oil refining, commodity trading, finance, consumer brands, fertilizers and more. Key recent growth areas have been its investment in renewables, new commodity trading offices in Asia, as well as acquisitions of consumer brands like Infor.
Investors can get indirect exposure by investing in public companies that supply to Koch Industries
Since directly owning equity in Koch Industries is not possible, an alternative for investors is to identify and invest in publicly traded companies within Koch’s huge supply chain. These would range from publicly traded oil field services firms, pipeline operators, commodity traders, IT vendors, industrial manufacturers, packaging companies amongst others that directly supply goods and services to various Koch Industries subsidiaries.
Publicly traded competitors to Koch Industries also allow indirect investment exposure
Investing in public competitors of Koch Industries across energy, industrials and consumer staples sectors also offers an avenue for financial exposure. Leading competitors would include oil & gas majors like ExxonMobil and Chevron that compete with Koch’s refining business, industrial gas companies like Air Products and Chemicals competing with Koch fertilizers as well commodity giants like Cargill and Archer Daniels Midland that compete with Koch trading.
While Koch Industries’ private ownership structure makes direct investment impossible, investors still have ample options to gain exposure to the company’s growth trajectory. This includes investing in its publicly traded suppliers and competitors across energy, commodities trading and consumer brands categories.