Archives for November 6, 2013

Northleaf Secondary Partners Closes Fund 2 Above Target

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Northleaf Capital Partners has held a closing of its latest fund, Northleaf Secondary Partners, with $206 million of commitments, surpassing its initial $200 million target. The new fund anticipates having a final closing in December 2013.

“Northleaf Secondary Partners has a global strategy focused on smaller transactions across geographies, fund sizes, strategies and sectors,” said Michael Flood, Managing Director of Northleaf and co-head of the firm’s secondaries program. “Through our established and growing primary investment program, we benefit from existing investment relationships with more than 90 private equity fund managers in 14 countries that provide deal referrals and proprietary informational advantages. We appreciate the value investors have placed on our demonstrated ability to deliver strong returns and early cash distributions.”

Northleaf Capital Partners has $5 billion in commitments under management through six private equity funds, a specialist private equity secondary fund, and an infrastructure co-investment fund. The firm has 60 investment professionals and maintains offices in Toronto, London, and Menlo Park (www.northleafcapital.com).

“Our deal sourcing efforts will remain focused on transactions that take place outside of the competitive auctions of broad portfolios that are typically pursued by the multi-billion dollar secondary funds and large institutional investors,” said Daniel Dupont, Managing Director of Northleaf’s London, UK office and co-head of the firm’s secondaries program. “We will continue to identify and pursue opportunities that feature cash flow positive businesses and portfolios with the potential for near-term liquidity, and properly incentivized and aligned management teams.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-6-13

Avante Mezzanine Supports Latest Inverness Graham Add-on

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Avante Mezzanine Partners has provided unitranche debt and an equity co-investment in a refinancing transaction for TechDevice Holdings, an Inverness Graham portfolio company. Proceeds from this transaction were used to support TechDevice’s add-on acquisition of AdvancedCath Technologies.

“We are very appreciative of the flexibility and responsiveness that Avante demonstrated throughout the process,” said Scott Kehoe, Managing Principal of Inverness Graham Investments. “We are happy to have them as our partner as we invest in the company to facilitate its next stage of growth.”

Inverness Graham first invested in TechDevice in January 2011. TechDevice develops and manufactures catheters and components, including balloons, coils, ground cores, and finished guidewires used in interventional and endosurgical procedures. The company is headquartered in Watertown, MA (www.techdevice.com).

AdvancedCath Technologies is a designer, developer and manufacturer of advanced catheters and related components. The company is based in San Jose, CA (www.advancedcath.com).

“We have built a strong relationship with the Inverness Graham team and are excited to partner with them once again,” said Jeri Harman, Founder and Partner of Avante. “TechDevice is an outstanding platform for advanced medical device manufacturing and is led by an impressive management team. We look forward to supporting Inverness Graham and management as they grow the business.”

Avante Mezzanine Partners provides unitranche/one-stop debt, mezzanine, and minority equity investments of $5 million to $20 million to sponsored and non-sponsored companies with EBITDAs from $3 million to $15 million. Sectors of interest include aerospace & defense; business services; consumer products; distribution; education; healthcare & life sciences; industrial manufacturing; security products & services; software & IT services; and specialty chemicals & coatings. Avante Mezzanine Partners has offices in Los Angeles and Boston (www.avantemezzanine.com).

“TechDevice is an excellent addition to the Avante portfolio,” said Ivelisse Simon, Principal of Avante. “The company has a long history as a preferred supplier to blue-chip medical device OEMs and the acquisition of AdvancedCath expands the company’s core competencies and customer base.”

Inverness Graham invests in lower middle market value-added manufacturing and service companies with EBITDA’s between $3 million and $10 million and enterprise values of less than $75 million. Inverness Graham manages $250 million in capital commitments and was formed by senior executives of the Graham Group, an industrial and investment concern with global interests in plastics, packaging, recycling, building products and outsourced manufacturing. The firm is based in Philadelphia, PA (www.invernessgraham.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-6-13

Abacus Backs Baird’s Buy of Kason

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Abacus Finance Group served as Administrative Agent and Sole Lead Arranger for $18 million in senior secured credit facilities to support the recent acquisition of Kason Corporation by Baird Capital.

Kason Corporation manufactures equipment such as circular vibratory screeners and centrifugal screeners designed to separate bulk solids materials from solids and slurries, as well as a line of fluid-bed processors for drying, cooling, or moisturizing of bulk solids. The company serves a variety of end-markets, primarily food and dairy, chemical and plastic manufacturers. Kason is based in Millburn, NJ (www.kason.com).

“Abacus was an outstanding partner for the Kason transaction,” said C. Andrew Brickman, a partner with Baird Capital. “We were impressed with their responsiveness and willingness to roll up their sleeves and dig into the business. They asked the right questions and were quick to grasp the Kason business model, enabling them to commit early and deliver a flexible and comprehensive financing package. We look forward to working with Abacus again in the future.”

Abacus targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $25 million. The companies that Abacus finances generally have EBITDAs between $3 million and $15 million. Abacus was formed in June 2011 and is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank, founded in 1850, the largest privately held bank in America with approximately $10 billion in assets. Abacus is based in New York (www.abacusfinance.com).

“We are delighted to begin a relationship with Baird Capital,” said Tim Clifford, President and CEO of Abacus. “We worked hand-in-hand with their team, and we were impressed by their openness and transparency during the due diligence process as well as by the quality of resources they brought to the transaction. They were particularly pleased by the level of service we were able to provide in terms of speed and flexibility in transaction structuring.”

Abacus team members involved in the transaction included Sean McKeever and Eric Petersen. Abacus was joined in the financing by mezzanine partner Fifth Street Finance (www.fifthstreetfinance.com).

Baird Capital, the direct private investment arm of Robert W. Baird & Co., invests in lower middle-market companies in the manufactured products, healthcare and business services sectors. The firm invests from $15 million to $35 million in companies with enterprise values of $25 million to $125 million and EBITDAs greater than $5 million. Baird Capital was founded in 1989 and is based in Chicago (www.bairdcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-6-13

Grey Mountain Promotes Jason Urband to Vice President

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Grey Mountain Partners has promoted Jason Urband to Vice President. Mr. Urband joined Grey Mountain in 2009. He is involved in all areas of the firm but primarily focuses on deal sourcing, transaction execution and the firm’s Executive Sponsorship Program.

Prior to Grey Mountain, Mr. Urband was an investment professional with an affiliate of Fortress Investment Group and an investment banker, most recently with RBC Capital Markets, where he focused on mergers & acquisitions. He graduated from the University of Denver where he earned a BS in Business Administration with a focus in Finance.

Grey Mountain Partners invests up to $75 million in control acquisitions of companies with enterprise values between $30 million and $150 million. Sectors of interest include aerospace & defense, building products & materials, business process outsourcing, diversified manufacturing, energy & power, financial services, food & beverage, healthcare services & technology, industrial services, packaging, professional services, specialty chemicals, technology, transportation & logistics, wholesale and distribution. Grey Mountain was founded in 2003 by Managing Partners Rob Wright and Jeff Kuo and is based in Boulder with an additional office in Minneapolis (www.greymountain.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-6-13

Centerview Invests in Ole Smoky Tennessee Moonshine

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Centerview Capital has made an equity investment in Ole Smoky Tennessee Moonshine, a distiller of corn whiskey.

Ole Smoky’s products include a traditional corn whiskey, a six times distilled “White Lightning,” Moonshine Cherries, Apple Pie, peach, blackberry, and seasonal flavors such as blueberry, grape, hunch punch, pink lemonade, strawberry, and lemon drop.  The company’s products, originally sold only to visitors of its Tennessee distillery, are available in 49 states and Canada. Earlier this year Ole Smoky quadrupled its bottling capacity to keep up with rising demand with the addition of a nearby 20,000-sq. ft. facility.

Ole Smoky uses a 100-year-old family recipe, which was perfected with the help of Dave Pickerell, who served as the Master Distiller for Maker’s Mark for over 15 years. The ingredients are locally sourced. The company was founded in 2010 by Joe Baker, Cory Cottongim and Tony Breeden and is based in Gatlinburg, TN (www.olesmokymoonshine.com).

“The story of moonshine embodies the American spirit and is a fundamental part of our heritage here in East Tennessee. Rebellious, resourceful and fiercely independent, our families honed the craft of making fine whiskey more than a century ago in the Smoky Mountains,” said Joe Baker, Chairman of Ole Smoky. “Tony, Cory and I are excited about this investment and the opportunity to work with Centerview to introduce even more folks to an authentic, Appalachian spirit that my family has enjoyed for generations.”

Centerview Capital invests in consumer and technology companies. The firm has approximately $500 million in committed capital and has offices in Greenwich, CT and San Francisco, CA (www.centerviewcapital.com).

“Ole Smoky’s products have broad adult appeal and benefit from important long-term spirits trends, such as increased consumer interest in craft distilling and flavored spirits, and also from a strong interest in products with deep American heritage. When you consider this in conjunction with the chance to work closely with the company’s founders and a truly talented management team, the merits of this investment speak for themselves,” said Jim Kilts and David Hooper, Centerview Capital’s co-founders, in a released statement.

Demeter Group, an investment bank specializing in the wine, spirits, craft beer, food, and beauty sectors, acted as the exclusive financial advisor to Ole Smoky. Demeter Group is headquartered in San Francisco (www.demetergroup.net).

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-6-13

Stone-Goff Invests in Learner’s Edge

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Stone-Goff Partners has made an investment in Learner’s Edge, a provider of graduate-level, distance learning courses for Pre K-12 teachers.

Learner’s Edge is a developer and marketer of continuing education and professional development graduate courses for Pre K-12 teachers. The company offers a range of print based, online and on-site courses across an array of teaching topics. Teachers use the company’s products to satisfy their teacher certification requirements or to move up their salary scale within their school district through additional education. Learner’s Edge was founded in 2002 by two middle-school teachers, Joe Cotter (CEO) and Kyle Pederson. Learner’s Edge partners with academic institutions such as Augustana College, Colorado State University-Pueblo, North Dakota State University, Marygrove College, Pacific-Lutheran University and Lourdes University to provide degree-eligible credits to teachers. In addition, Learner’s Edge has partnered with Augustana College to provide an online masters of education degree program. Learner’s Edge currently offers 80 courses through its continuing education and affiliated masters programs. The company is based near Minneapolis in Lakeville, MN (www.learnersedgeinc.com).

Stone-Goff Partners invests in lower middle market companies in the consumer, leisure, information, service, media and retail sectors. The firm is based in New York (www.stonegoff.com).

Greene Holcomb Fisher (GHF) served as the exclusive financial advisor to Learner’s Edge in the transaction. The recapitalization of Learner’s Edge marks the sixth transaction by GHF in the K-12 education market in the past two years.

“We are thrilled with the transaction outcome and appreciative of the extraordinary efforts of GHF and the management team at Learner’s Edge. This was a very smooth transaction process, and GHF helped facilitate every step along the way,” said Hannah Craven, Founding Partner of Stone-Goff Partners. “We look forward to working with the team at Learner’s Edge to continue to grow the business and pursue new opportunities in the education space.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-6-13

Clarion Capital Acquires SQAD

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Clarion Capital Partners has completed the acquisition of SQAD, a provider of TV, radio and digital advertising cost analysis. The existing shareholders of SQAD, including CEO, Neil Klar, will maintain an ownership stake in SQAD.

“SQAD has an exceptional management team and is highly respected within the media industry,” said David Ragins, Managing Director with Clarion Capital Partners. “We are in a media landscape where the value of timely and accurate data to make critical advertising decisions is unprecedented, and SQAD is uniquely positioned to capitalize on this revolution thanks to its exceptional data-focused products and industry leadership position.”

SQAD is a provider of TV, radio and digital advertising cost analysis. SQAD provides media data to advertising agencies, buying services, advertisers, television and radio stations, cable operators, program syndicators and Internet publishers. SQAD is headquartered in Tarrytown, NY (www.sqad.com).

Neil Klar will remain CEO of SQAD and continue to lead and oversee the operations of the business. Joining the leadership team, and as part of Clarion’s investment, SQAD has hired industry veteran Stephen Baker as its CFO.

“SQAD is a tremendous platform for organic growth and add-on acquisitions,” said Mr. Ragins. “Clarion will provide SQAD with added resources and experience to evaluate potential partnerships and acquisitions that offer additional value for SQAD’s customers.”

Clarion Capital Partners is a middle market private equity firm that invests from $15 million to $50 million in companies that have EBITDAs greater than $10 million. Sectors of interest include: business services; healthcare services; specialty financial services; consumer products; specialty retail; and media & entertainment. Clarion is based in New York (www.clarion-capital.com).

Debt financing for this transaction consisted of a senior credit facility provided by Abacus Finance Group and a subordinated note provided by BB&T Capital Partners and Stellus Capital Management.

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-6-13