July 26, 2012
Search

Private Equity Professional

Private Equity's News Leader

There is a right and a wrong in the universe, and that distinction is not hard to make.
Superman

You are here: Home / 2012 / July / Archives for 26th

Archives for July 26, 2012

Resilience Closes Third Fund Above Target

by

Resilience Capital Partners has completed the final close of its third fund, The Resilience Fund III, L.P., on May 31, 2012 with $222.5 million of committed capital. Fund III exceeded its target of $200 million. Fund III’s capital comes from a variety of sources including pension funds, insurance companies, foundations and endowments, fund of funds, wealth managers and investment consultants. Approximately 60 percent of the fund’s capital was provided by investors domiciled in the U.S., with the remainder from investors domiciled in Europe and the Caribbean.

“We are very pleased to complete our fundraising for Fund III and receive commitments from some of the world’s most respected private equity investors. The confidence they have placed in us is a testament to the results we have generated since founding the firm in 2001,” said Bassem Mansour, Co-CEO of Resilience. “We believe businesses will survive and thrive if they are properly capitalized with both human and performance-improvement capital.”

Griffin Financial Group served as placement agent to Resilience for Fund III. “We are delighted that Resilience was able to exceed their target in a very challenging fundraising environment”, said Paul Delaney, a Senior Managing Director at Griffin Financial Group. “We appreciate the strong support new institutional limited partners placed in the Resilience team and their focused investment strategy.” Resilience Capital Partners specializes in investing in lower middle market companies within a range of industries. Resilience’s value oriented investment strategy is to acquire companies in a variety of special situations including underperformers, corporate divestitures, turnarounds, and orphan public companies. Since its inception in 2001, Resilience has acquired 24 companies under 17 platforms with over $2 billion in revenue. The firm is based in Cleveland, OH (www.resiliencecapital.com).

Fund III currently has three platforms in place including North Coast Minerals (industrial minerals and silica sands); WT Hardwoods Group (hardwood lumber and flooring); and Thermal Solutions Manufacturing (heavy-duty heat exchange components). Resilience expects to build a portfolio of 10 to 12 platform companies in Fund III that participate in a range of manufacturing, business services and distribution industries.

“Our team generates results through a roll-up-the-sleeves approach that transforms good companies into more profitable and successful enterprises,” said Steve Rosen, Co-CEO of Resilience. “We invest in what we know – the lower middle-market in the heartland of America – and draw on a deep bench of operating expertise to enhance a company’s cash flow, competitive positioning and prospects.”

Livingstone Adds Four Bankers to Chicago Team

by

Livingstone has added four new bankers to its team with the hiring of Thomas Geen, Colin O’Callaghan, Adam Lucas and Colin Monasterio. “We are thrilled to welcome these well-qualified individuals to the Livingstone team at a significant time in our history. Livingstone is experiencing record activity since opening our doors in 2007 and our ability to attract and retain top flight individuals such as these is a testament to our continued success,” said Steve Miles, a partner at Livingstone.

Tom Geen and Colin O’Callaghan join Livingstone’s team as Associates, supporting the firm’s M&A and capital raising activities across multiple sectors. Mr. Geen brings over five years of investment banking and capital markets experience to the firm. He most recently worked in the Investment Banking division at J.P. Morgan advising middle market companies and private equity sponsors. He graduated with his BBA from the University of Iowa and will earn his MBA from the University of Chicago in March 2013.

Mr. O’Callaghan brings over five years of capital markets experience to Livingstone. He previously held Associate positions at The Chicago Corporation and Bank of America Merrill Lynch. He earned his MBA from Indiana University, his MSC from University of Southampton and AB from College of the Holy Cross.

Adam Lucas and Colin Monasterio join Livingstone as Research and Financial Analysts. Mr. Lucas graduated with a BBA from Notre Dame and completed finance-focused internships at NetApp and Fluor Corporation. Mr. Monasterio earned his BBA from the University of Wisconsin and completed a corporate finance internship at Nestle.

Livingstone is an independent, international investment banking firm focused on M&A and private capital transactions with values between $30 and $300 million. Across its principal offices in the US and Europe, Livingstone’s corporate finance professionals specialize in five key sectors: business services; consumer; healthcare; industrial; and media & technology. The firm has offices in Chicago, London and Madrid (www.livingstonepartners.com).

GE Antares Backs Latest Leonard Green Acquisition

by

GE Antares served as administrative agent on a $405 million senior credit facility to support the acquisition of Tank Holdings, a designer and manufacturer of rotationally-molded polyethylene and steel containers and a portfolio company of Olympus Partners, by Leonard Green & Partners. “GE Antares has a deep understanding of Tank’s business,” said Usama Cortas, principal at Leonard Green & Partners “They have grown with the company, delivering tailored financial solutions that meet the needs of the business today and in the future. Their insight and industry knowledge was vital to the success of this acquisition.”

Olympus and management created Tank in September 2008 through the combination of Snyder Industries and Norwesco. Since 2008, the company has integrated seven tuck-in acquisitions, which have enhanced Tank’s product lines and geographic reach.

Norwesco is a manufacturer of polyethylene tanks primarily for agricultural, water, and below-ground septic applications. Founded in 1939, the company has 17 facilities in North America. Norwesco is based in St. Bonifacius, MN (www.norwesco.com).

Snyder Industries is a polyethylene and steel tank manufacturer serving the agricultural, industrial, oil and gas, and septic markets in North America. The company operates six facilities across the U.S and is based in Lincoln, NE (www.snydernet.com).

“We have developed a strong relationship with Leonard Green over many years and our history with Tank Holdings goes back to the late eighties,” said James Kenefick, senior managing director of GE Antares. “We are pleased to have these long-standing relationships and look forward to continuing to grow with both Tank Holdings and Leonard Green & Partners in the future.”

GE Antares is a unit of GE Capital with offices in Atlanta, Chicago, Los Angeles, New York, and San Francisco. Specializing in the middle market, GE Antares is a “one-stop” source for GE’s lending and other services to middle market private equity sponsors (www.geantares.com).

Leonard Green & Partners’ invests in middle-market companies with market-leading franchises and defensible competitive positions, attractive growth prospects and proven management teams. The firm’s investments are in the form of traditional buyouts, going-private transactions, recapitalizations, growth capital investments, corporate carve-outs and selective public equity and debt positions. Sectors of interest include retail, distribution, healthcare, aerospace/defense and consumer/business services. Leonard Green & Partners was established in 1989 and manages approximately $15 billion of equity capital. The firm is located in Los Angeles, CA (www.leonardgreen.com).

Oppenheimer Names New Investment Banking Co-Heads

by

Oppenheimer & Co. has announced that Bruce McCarthy and Marc Thompson have been named as co-heads of the firm’s investment banking group. They replace Marshall Heinberg who is leaving Oppenheimer after 25 years of service. “We are very pleased that Bruce and Marc have accepted this expanded role at Oppenheimer. Investment Banking, which is a core competency at our firm, will greatly benefit from the experience and expertise that they bring,” said Albert Lowenthal, Chairman of Oppenheimer & Co.

“I want to thank Marshall Heinberg, the former head of Investment Banking, for his years of service. He leaves Oppenheimer with our affection and respect. Marshall has decided to step down at the end of the month to pursue other interests. Marshall started his career with Oppenheimer over 25 years ago, and I am profoundly grateful to him for helping build a world-class middle market Investment Banking group,” said Mr. Lowenthal.

“I have been extremely fortunate to be able to have a 25 year career at Oppenheimer and its predecessor companies and I am delighted to pass the baton to two very talented professionals and leaders. I know they will continue to build on the success of our Firm. It has been a pleasure to be associated with so many gifted and dedicated colleagues,” said Mr. Heinberg.

Bruce McCarthy, who has over 20 years of investment banking experience, has worked at Oppenheimer and its predecessor companies since 1998. As Head of Global Mergers & Acquisitions, he has completed over 250 mergers, acquisitions, joint ventures and hostile defenses in a variety of sectors, including Industrial, Telecom, Chemical, Consumer Products and Technology. Mr. McCarthy will continue in his role as Head of Mergers & Acquisitions in addition to his new responsibilities. Before joining Oppenheimer, he worked for nine years in the mergers & acquisition groups at Salomon Smith Barney. He earned a BA in Economics from Boston College and an MBA from the Columbia Business School.

Marc Thompson, who has over 25 years of investment banking, private equity and operational experience and has worked at Oppenheimer and its predecessor companies since 1987, has completed a range of public and private equity and debt financings and mergers & acquisition assignments for clients, primarily in the technology and industrial sectors. In 2000, he formed the Software and Services practice, a team that has executed over 140 transactions worth more than $20 billion. He has also been a Managing Director at CIBC Capital Partners, where he served on the boards of several companies and assisted CIBC portfolio companies in completing acquisitions and debt financings. He holds an AB from Dartmouth College. Mr. Thompson will continue to head Software & Services and oversee the Technology Practice in addition to his new responsibilities.

Oppenheimer & Co. provides wealth management, securities brokerage and investment banking services to high-net-worth individuals, families, corporate executives, local governments, businesses and institutions. The firm is based in New York (www.opco.com).

Spencer Allen Joins Windjammer as an Associate

by

Windjammer Capital Investors has hired Spencer Allen as a new associate. He will be responsible for sourcing and evaluating investment opportunities, performing due diligence, participating in the structuring, negotiating and closing of transactions, and assisting in the management of portfolio companies. Mr. Allen will be based in the firm’s Waltham, MA office.

Mr. Allen comes to Windjammer from Barclays Capital where he was an investment banking analyst focused on executing M&A and debt transactions in the consumer sector. Prior to joining Barclays, he was an investment banking analyst at Lazard Middle Market. Mr. Allen received his BBA from the University of Michigan.

Windjammer Capital Investors makes control and non-control investments in middle market businesses in partnership with management. Windjammer manages institutional funds totaling over $1.8 billion of capital and is currently investing its latest fund, Windjammer Senior Equity Fund IV, which it raised in 2012. The firm was founded in 1990 and is based in Newport Beach, CA and Waltham, MA (www.windjammercapital.com).

Monroe Capital Backs Latest Seaport Capital Acquisition

by

Monroe Capital has provided a $16.5 million unitranche facility to support the acquisition of FTJ FundChoice by Seaport Capital Partners.

FTJ FundChoice provides technology enabled mutual fund trading platforms to investment advisors nationwide. The company was founded in 2001 and is based in Hebron, KT (www.ftjfundchoice.com).

“We were extremely pleased to have Monroe Capital as a financing partner in our acquisition of FTJ. Monroe Capital was able to provide a flexible capital structure and close our transaction in a timely manner. We appreciate the relationship we have developed with the Monroe Capital team,” said Bill Luby, a founding Partner of Seaport Capital Partners.

Seaport Capital invests from $5 million to $20 million of mezzanine debt and equity in US based companies with $3 million to $15 million of EBITDA. Industries of interest include online advertising, education services, co-location and managed services, communication towers, business process outsourcing, event & sponsorship marketing, late stage software, and fiber networks. The firm is based in New York (www.seaportcapital.com).

“We were pleased that Seaport Capital Partners had the confidence in Monroe to provide a financing solution to support the acquisition of this unique service business. We look forward to working with the team as they execute on their growth objectives,” said Theodore Koenig, President and Chief Executive Officer of Monroe Capital.

Monroe Capital is a specialty finance company providing senior and junior debt to middle-market companies. Monroe Capital specializes in originating, structuring and providing one-stop financings. Investment types include senior and junior secured debt as well as bridge loans, acquisition facilities, mezzanine or last-out secured loans and equity co-investments. The firm is based in Chicago, IL (www.monroecap.com).

Blum Capital Adds New Partner and Associate

by

Blum Capital Partners today announced that Peter Westley and Carol Fu have joined Blum Capital’s investment team as partner and associate, respectively. “We are fortunate to have professionals as accomplished as Peter and Carol join our team,” said Jane Su, Co-Managing Partner at Blum Capital. Blum Capital plans to continue to enhance its team of senior investment professionals in the coming months to serve both the firm’s existing investors and to expand the Blum franchise.

Mr. Westley was previously a Managing Director at Salomon Smith Barney and a Partner at ThinkEquity Partners. Most recently, he was a Partner at North Point Advisors, an investment banking firm specializing in mergers and acquisitions. Mr. Westley has been both an investor and financial advisor during his career, raising more than $10 billion in equity and debt capital, and advising on more than $2 billion of transactions for his clients in a variety of industries. Mr. Westley received his MBA from the Graduate School of Business at Stanford University and BA from Dartmouth College.

“It is a privilege to be joining the firm,” said Mr. Westley. “Richard Blum’s long-term track record as a strategic financial investor is outstanding. His work as a philanthropist is equally impressive. I am also pleased to be joining Jane Su, who I have known and respected as an investor for more than 20 years. I look forward to working with Richard, Jane, and the rest of the team at Blum Capital, to take advantage of future investment opportunities on behalf of the firm’s investors.”

Ms. Fu was previously a senior analyst at Maverick Capital in New York and San Francisco where she identified investment opportunities and conducted research within the industrial and energy sectors. Her experience also includes positions at Blackstone Group, Merrill Lynch and HSBC Securities, all based in Hong Kong, and at UBS in London. Ms. Fu holds a BS degree from the Imperial College in London, a Masters degree in Statistical Sciences from the University of Cambridge, and an MBA from the Wharton School at the University of Pennsylvania.

Blum Capital Partners has $1.6 billion of capital under management and has invested in a wide variety of businesses through multiple going-private transactions. The firm was founded in 1975 and is based in San Francisco, CA (www.blumcapital.com).

Bertram Capital Exits Author Solutions

by

Bertram Capital announced today the sale of Author Solutions, a provider of professional self-publishing services, to Pearson plc, the parent of Penguin Books Ltd, one of the largest traditional book publishers in the world, for $116 million in cash. The sale of Author Solutions marks Bertram Capital’s third portfolio company exit in the last nine months.

Since Bertram Capital’s investment in 2007, Author Solutions (“ASI”) has grown to be the world’s leading provider of professional self-publishing services. Bertram Capital acquired ASI in April 2007 and acquired iUniverse as its first add-on acquisition in October of 2007. After integrating iUniverse, the company then completed the acquisitions of Xlibris and Trafford in 2009. Beginning with a platform investment in a business with approximately $25 million in trailing revenue, these strategic acquisitions, aggressive business development and internal operational improvements expanded the business more than 4x over the ownership period. Author Solutions is based in Bloomington, IN (www.authorsolutions.com).

“ASI’s extraordinary growth and its impact on the self-publishing industry clearly demonstrate the capability our buy and build approach has to create market leaders that are attractive acquisitions for strategic buyers,” said Jeff Drazan, Managing Partner at Bertram Capital. “We successfully executed three add-on acquisitions for the ASI platform and grew the business more than 4x in just over five years, ultimately creating the world’s largest self-publishing business.”

Bertram Capital invests in middle-market business services, consumer, healthcare, industrial and technology companies. Bertram is currently investing out of its $500 million second fund and typically allocates $25 million to $100 million to each investment. Since the firm’s inception, Bertram has managed in excess of $850 million in committed capital and has completed 8 platform investments and 14 follow-on acquisitions. The firm is located in San Mateo, CA (www.bertramcapital.com).

“Working in partnership Kevin Weiss and his team at ASI for the past five years has been a great experience for the Bertram team,” said Jared Ruger, a Partner at Bertram. “Together, we transformed a slow growing, breakeven business into a fast-growing, consistently profitable innovator in its market that ultimately attracted the attention of a major strategic player. We achieved our goal of building a business that was both relevant and attractive to a strategic buyer. We wish Pearson well as they take the reins and lead ASI into the future.”

Propel Equity Partners Invests in POOF-Slinky

by

POOF-Slinky, a maker of toys under the Slinky, POOF, Ideal, Cadaco, Scientific Explorer and Fuzzoodles brands, has received a significant investment from Propel Equity Partners.

POOF-Slinky manages a portfolio of recognizable branded toys, sports balls, educational activity kits, table top and board games and novelty products. Best known for its classic metal Slinky and Slinky Dog products and POOF foam balls, POOF-Slinky products are sold in more than 35,000 retail outlets. The company operates two manufacturing plants in Michigan and Pennsylvania and has over 125 employees. The company is managed by CEO Ray Dallavecchia Jr. and COO Doug Ferner. POOF-Slinky was founded more than 65 years ago and is based in Plymouth, MI (www.poof-slinky.com).

“In what is a fragmented industry, POOF-Slinky has consistently excelled as a leader,” says Michael Cornell, Partner, Propel Equity Partners. “Ray and Doug have put together an impressive stable of authentic toy brands that we believe have tremendous additional opportunities for growth at retail in the $20 billion plus toy market. We are looking forward to applying our expertise in the consumer products category to help POOF-Slinky accelerate organic growth, maximize brand potential, expand U.S. production capacity and make strategic acquisitions.”

Propel Equity Partners (formerly MCC Capital Partners) is a private equity firm focused on investments in branded consumer products businesses. Propel Equity Partners provides its portfolio companies with strategic and operational support to enable more efficient operations and accelerated sales growth. The firm is based in Greenwich, CT (www.propelequity.com).

“Propel Equity Partners has a strong track record of partnering with management teams of consumer products companies and providing the capital and expertise needed to help those companies reach new levels of growth and profitability,” says Ray Dallavecchia. “Propel showed particular knowledge and interest in the toy category, and we are looking forward to leveraging the additional resources and building upon our strong existing business.”

The “slinky” was developed in 1943 by naval engineer Richard James as an outgrowth of his work developing cushioning devices for warships; it was his wife, Betty who gave it the “slinky” name. The toy debuted at Gimbel’s Department Store in Philadelphia in 1945. Since then, more than 300 million Slinky’s have been sold. The Slinky is still manufactured in Hollidaysburg, PA, with the original equipment Richard James built.

BC Partners and The Carlyle Group Acquire Hamilton Sundstrand Industrial

by

BC Partners and The Carlyle Group today announced an agreement to acquire Hamilton Sundstrand Industrial, a manufacturer of pumps and compressors used in the industrial, infrastructure and energy markets, from United Technologies Corporation for $3.46 billion.

“Hamilton Sundstrand Industrial is a world-class platform and we are excited about the company’s significant growth prospects, including in key emerging markets,” said Raymond Svider, Co-Chairman and Managing Partner of BC Partners.

The transaction is expected to close in the fourth quarter of 2012.The investment in Hamilton Sundstrand will be funded in an equal partnership with equity from BC Partners and The Carlyle Group as well as third-party debt provided by a banking consortium. External debt financing commitments have been provided by Citigroup, Credit Suisse, Deutsche Bank, Morgan Stanley, RBC Capital Markets and UBS.

Hamilton Sundstrand comprises three businesses as follows: Sundyne is a manufacturer of high-speed pumps and compressors used principally for mission-critical, down-stream oil and gas and chemical/industrial infrastructure; Milton Roy is a provider of metering pumps used in chemical, oil and gas and water treatment applications; and Sullair is a global manufacturer of rotary screw air compressors used to power air-driven industrial equipment and tools used in the industrial manufacturing and the energy, mining and chemicals industries. Hamilton Sundstrand operates 19 manufacturing facilities in the U.S., France, China, Australia, the U.K., Spain and India and is headquartered in Windsor Locks, CT (www.hamiltonsundstrand.com).

BC Partners has $16.4 billion of capital under management and invests in companies in a variety of sectors that have significant European operations. The firm has offices in London, Hamburg, Milan, New York and Paris (www.bcpartners.com).

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. The firm is based in Washington, DC (www.carlyle.com).

Carlyle and BC Partners have a history of successful industrial investments including Carlyle’s ownership of Allison Transmission, Rexnord Corporation and AxleTech International and BC Partners’ investments in Brenntag, SGB-SMIT Group and Interpump.

To search in site, type your keyword and hit enter