The Comvest Group, through its debt fund, Comvest Capital II L.P., has provided a $19 million term loan to Karmaloop, an online retailer of men’s and women’s apparel, shoes and accessories and a portfolio company of Insight Venture Partners. The proceeds of the term loan were used to refinance existing debt and provide approximately $10 million in growth capital.
Karmaloop is an online retailer of men’s and women’s apparel, shoes and accessories centered on “Verge Culture” and streetwear. The company was founded by Greg Selkoe in 1999 and is based in Boston, MA (www.karmaloop.com).
“Greg Selkoe has built a tremendous platform in Karmaloop and is supported by an excellent team,” said Managing Director Dan Lee of Comvest Capital. “We moved mountains together to get this done quickly, and in that process we got a sense for the great partnership we’ll have with Karmaloop.”
The Comvest Group provides debt and equity to middle-market companies. For debt investments the firm will invest from $2 million to $20 million per transaction in companies with $10 million to $200 million of revenue that have positive or negative EBITDA. For equity investments the firm will invest from $10 million to $50 million per transaction in companies with $15 million to $500 million of revenue that have positive or negative EBITDA. Since 2000, Comvest has invested more than $1.6 billion of capital in over 110 public and private companies worldwide. The firm is based in West Palm Beach, FL (www.comvest.com).
“Comvest was an extremely responsive partner,” said Karmaloop founder and CEO Greg Selkoe. “The teams at Karmaloop and Comvest worked diligently to close in a very tight timeframe that provided us the capital needed to continue our growth through the busy fourth quarter holiday season. We asked a lot of Comvest, and they delivered.”
Insight Venture Partners makes expansion and late stage investments in the software, e-commerce, Internet and data-services industries. Founded in 1995, Insight has raised more than $5 billion and made more than 150 investments. The firm is located in New York, NY (www.insightpartners.com).
“Insight has been a supportive partner to Karmaloop since 2008 and we are pleased Comvest has provided this capital to support the company’s continued expansion,” said Managing Director Jeff Lieberman of Insight Venture Partners.
© 2012 PEPD • Private Equity’s Leading News Magazine • 9-5-12
