Archives for January 30, 2013

Clairvest Hits 40% IRR on Sale of PEER 1 Network Enterprises

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The Clairvest Group has sold its fund 3 portfolio company PEER 1 Network Enterprises to Cogeco Cable. Under terms of the sale, Clairvest received sale proceeds of $79.5 million which took Clairvest’s total proceeds over the investment’s life to $81 million, which equates to 3.2 times invested capital and an internal rate of return of 40%.  Clairvest invested $25.2 million in PEER 1 in August 2009.

“When we were looking to invest in the IT infrastructure industry, PEER 1 was by far our first choice based on its financial metrics, scale, profitability and management,” said Ken Rotman, Co-CEO of Clairvest. “The financial return achieved on this investment is a tribute to the company’s management team who has done an outstanding job at strategically growing PEER 1 to become one of the leading companies in its market.”

PEER 1 is a global online IT infrastructure provider that offers managed hosting, dedicated hosting, and co-location services.  The company is based in Vancouver (www.peer1.com).

Upon its acquisition by Clairvest in 2009, PEER 1 began an aggressive capital investment program. Over the past two years, the company completed the construction of two data centers in Toronto and the UK.  Significant investment in human capital and physical infrastructure in the UK improved PEER 1’s market position and enabled it to purchase a UK competitor in July 2012. This add-on acquisition made PEER 1 a market leader in the UK.

“We appreciate the support provided by Clairvest over the past three and a half years,” said Fabio Banducci, CEO of PEER 1. “The addition of Clairvest to our shareholder base and board of directors was an important part of the overall upgrade to our organization.”

The Clairvest Group invests in mid-market companies, principally in North America, across a range of industries.  Clairvest looks to invest from $15 million to $50 million in equity capital in companies with EBITDAs from $5 million to $40 million. Desired ownership percentages range from 20% to 80%.  The firm is based in Toronto, ON (www.clairvest.com).

“PEER 1 is a great example of an internet infrastructure provider that continues to innovate and move upmarket, thereby reaping the benefits of a high quality customer base,” said Mitch Green, Principal and IT Services domain lead for Clairvest   “PEER 1’s management does a terrific job of investing resources into projects that enhance the service offering and produce sound economic results, which make it an attractive strategic acquisition for Cogeco Cable.  We wish this outstanding group continued success in the years to come,” added Mr. Green.

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-30-13

ORIX Leveraged Finance Increases Debt Facility at Event Photography Group

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ORIX Leveraged Finance announced today the closing of an increased senior debt facility to Event Photography Group, a portfolio company of Friend Skoler & Co., Raymond James Capital, ORIX Leveraged Finance, and management. 

Event Photography Group is a photographer and marketer of images to consumers, including graduation, endurance race, and mall-based holiday photos.  The company is based in Chesterfield, MO (www.eventphotographygroup.com).

“We are pleased to continue our long-standing relationship with Event Photography Group and support the very unique, growing business with a flexible credit facility that accommodates the needs of the company,” said Ted Thorp, director and co-head of ORIX Leveraged Finance.

Proceeds were used to fund acquisitions of complementary photography businesses and to provide liquidity to support the company’s expected growth.  ORIX Leveraged Finance served as lead arranger and administrative agent, partnering with Carlyle GMS Finance, who also participated in the upsized credit facility.

“ORIX and Carlyle GMS Finance have been constructive business partners who have steadfastly supported our consolidation and growth initiatives for the past six years with creative and flexible financing solutions,” said Paul Rasmussen, president of Event Photography Group.

ORIX Leveraged Finance, a business unit of ORIX USA Corporation, provides from $5 million to $50 million of debt and equity capital to small and mid-sized businesses that have from $5 million to $30 million of EBITDA.  ORIX Leveraged Finance is based in Dallas (www.orixleveragedfinance.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-30-13

Standish Management Expands to Seattle

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Standish Management, a provider of consulting services to managers of private equity, venture capital, real estate and fund of funds, has opened a new office in Seattle.  Trent Dawson, a former Vice President at Voyager Capital, has joined Standish Management as a Director to lead the firm’s expansion effort in Seattle.  Mr. Dawson will be responsible for building and managing the Seattle-based team and growing the firm’s client base in the Pacific Northwest market.  

“As a Standish client, Voyager has seen first-hand the tremendous value they bring to the table.  They offer a level of experience and sophistication that most funds simply can’t leverage internally, in terms of both people and technology. Trent has a deep understanding of the intricacies and challenges associated with managing funds, and added to his experience working with Standish from the client side, he is a perfect fit for representing their brand in this market,” said Erik Benson, managing director at Voyager Capital.

Before joining Standish, Mr. Dawson was Vice President, Finance for Voyager Capital, a Seattle-based venture capital firm.  Prior to Voyager, he was part of the fund administration team at Schroders on the island of Bermuda where he managed the accounting and tax functions of private equity and venture capital funds located around the world. Mr. Dawson started his career with the audit group at Ernst & Young in Dallas and continued his work with E&Y in Bermuda, where he focused on audit and tax of various alternative investment funds and their management companies. He earned a BA from the University of Texas.

“Standish has created the right model at the right time for private equity firms who require additional staff and more sophisticated systems and processes to meet the needs of institutional LPs,” said Bill Hughlett, Chief Financial Officer at Voyager.

Standish Management is an employee owned company that provides consulting and administration services to private equity, venture capital, real estate and fund of funds firms.  The firm provides a range of services including web-based financial reporting to investors, partnership accounting, capital call and distribution management and performance return calculations. The firm currently serves over 200 funds.  Founded in 2006, Standish is based in San Francisco with offices in Los Angeles, Palo Alto, Boston and Seattle (www.standishmanagement.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-30-13

Graham Partners Acquires Brenner Aerostructures

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The Atlas Group, a portfolio company of Graham Partners, has acquired Brenner Aerostructures, a manufacturer of aerospace components. 

Brenner Aerostructures is a value-added manufacturer of aerospace components and sub assemblies primarily serving the commercial aerospace industry.  The company specializes in designing, assembling and manufacturing parts and sub assemblies primarily for the commercial aircraft industry and other related markets. The company is based in Bensalem, PA (www.brenneraero.com). 

The Atlas Group is a manufacturer of high precision machine parts, assemblies, and replacement parts to aerospace original equipment manufacturers and Tier 1 suppliers. The company focuses on the production of structural and flight control components and assemblies that are highly complex and often flight critical, installed from the cockpit to the tail of the aircraft. The Atlas Group is headquartered in Wichita, KS (www.theatlasgroup.biz). 

SSG Capital Advisors, a mid-market investment bank, acted as the exclusive investment banker to Brenner Aerostructures. SSG Capital Advisors has offices in New York and Philadelphia (www.ssgca.com). 

Graham Partners seeks to acquire industrial companies with revenues between $30 million and $500 million that participate in manufacturing niches where it can leverage its combination of operating resources and financial expertise.  The firm is sponsored by the Graham Group, an industrial and investment concern with interests in plastics, packaging, machinery, building products and outsource manufacturing.  Graham Partners is headquartered in Philadelphia (www.grahampartners.net). 

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-30-13

JLL Partners to Acquire BioClinica and CoreLab Partners

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BioClinica, a provider of clinical trial management services, has entered into an agreement to be acquired by JLL Partners.  Simultaneously, JLL Partners has also reached an agreement to acquire CoreLab Partners, a provider of medical imaging services.  The proposed acquisition of CoreLab Partners is contingent on the closing of the BioClinica transaction. Both acquisitions are expected to close concurrently.

Following the proposed acquisitions, BioClinica and CoreLab Partners will be merged to create a single provider of medical imaging services and eClinical solutions for clinical trials.  Ampersand Capital Partners, which is the majority owner of CoreLab Partners, will also be a significant investor in the combined company.  Mark Weinstein, currently President and CEO of BioClinica, will lead the combined company.

“We are excited about the tremendous promise of this business combination given the strong fundamentals of each company and the overall industry. We will conservatively capitalize the combined business and look forward to supporting its continued growth,” said Dan Agroskin, Managing Director of JLL Partners. 

CoreLab Partners’ services include medical image management, interpretation, and response assessment for clinical trials, with a particular focus on the oncology therapeutic area. CoreLab Partners provides regulatory support and digital image submission, as well as cardiac safety assessments for development programs, support for clinical studies, and equipment rental. The company also offers worldwide ambulatory blood pressure monitoring services, digital ECG services, and cardiac safety services. CoreLab Partners is based in Princeton, NJ (www.corelabpartners.com).

BioClinica is a provider of integrated, technology-enhanced clinical trial management solutions. BioClinica supports pharmaceutical and medical device innovation with imaging core lab, internet image transport, electronic data capture, interactive voice and web response, clinical trial management, and clinical supply chain forecasting and optimization solutions.  The company operates state-of-the-art, regulatory body-compliant imaging core labs on two continents, and supports worldwide eClinical and data management services from offices in the United States, Europe and Asia. The company is based in Newtown, PA (www.bioclinica.com).

JLL Partners invests in manufacturing and service industries with a particular interest in healthcare services, financial services and business services.  The firm has approximately $4 billion of capital under management and is based in New York (www.jllpartners.com).

Ampersand Capital Partners is a private equity firm that focuses on middle market growth equity investments in the healthcare sector. The firm is based in Boston (www.ampersandcapital.com). 

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-30-13

General Catalyst Partners Acquires Oceans Healthcare

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General Catalyst Partners has acquired Oceans Healthcare, a provider of behavioral health services. 

Oceans Healthcare is currently the largest behavioral health provider in Louisiana. The company focuses on providing gero-psychiatric treatment services to patients age 55 and older, and is focused on treating dementia-related or other progressive mental illness.  Oceans currently owns and operates 10 inpatient behavioral health hospitals in Louisiana as well as 10 intensive outpatient programs. The company was founded in 2004 and is based in Lake Charles, LA (www.ohcg.info). 

MCG Capital Corporation supported the acquisition of Oceans Healthcare by providing a $23.7 million senior secured unitranche credit facility and revolving line of credit.  MCG Capital is a commercial finance company providing capital and advisory services to middle-market companies throughout the United States. The firm typically invests in companies with $20 million to $200 million in revenue and $3 million to $25 million in EBITDA. MCG Capital is based in Arlington, VA (www.mcgcapital.com). 

General Catalyst Partners makes growth equity investments of $10 million to $50 million in companies that have from $3 million to $30 million of EBITDA.  Sectors of interest include clean energy; new media and internet; software, systems and services; consumer products; healthcare; and financial & business services. General Catalyst Partners has offices in Cambridge, MA and Palo Alto, CA (www.generalcatalyst.com). 

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-30-13