Archives for 2013

GTCR Acquires NewWave Communications

by

GTCR has completed its previously announced acquisition of NewWave Communications, a multiple system cable operator, from Pamlico Capital.

“GTCR has been evaluating numerous opportunities within the cable industry,” said Phil Canfield, Managing Director at GTCR. “We were very fortunate to have former FCC Chairman Reed Hundt working with us as we developed our investment thesis and sourced the team. The NewWave acquisition is an exciting opportunity and the ideal starting point from which to build our investment in the industry. We look to build a leading cable platform through increasing high-speed data penetration, growth in commercial services and accretive acquisitions.”

GTCR’s investment in NewWave was made from GTCR Fund X, a private equity fund with $3.25 billion of committed capital. SunTrust Robinson Humphrey and Goldman Sachs Bank USA provided the debt capital to support the transaction.

This acquisition was completed through GTCR’s platform portfolio company Rural Broadband Investments (RBI). GTCR and Phil Spencer, CEO of RBI, formed RBI in 2012 to acquire broadband infrastructure assets in small and mid-sized communities. The acquisition of NewWave Communications is the first in a series of acquisitions being pursued by RBI, which plans to acquire 300,000-400,000 cable subscribers in small-to-mid sized rural markets to deliver services to residential and commercial customers. RBI is headquartered in Overland Park, KS (www.ruralbroadbandinvestments.com).

NewWave is the 22nd largest multiple system operator (MSO) in the country passing approximately 250,000 homes and serving over 90,000 customers in rural Illinois, Indiana, Missouri and Arkansas. The company is based in Sikeston, MO (www.newwavecom.com).

“The acquisition of NewWave Communications is a great first step and provides us with an excellent platform to build upon,” said Mr. Spencer, CEO of Rural Broadband Investments. “NewWave has done an outstanding job upgrading its network, moving to DOCSIS 3.0 and constructing fiber to tie their markets together. These efforts give us an outstanding platform to roll out enhanced video, voice and high-speed internet services as well as advanced commercial services. In addition, NewWave has an outstanding employee base and we plan to continue to build on the great work they have done over the last several years.”

Waller Capital Partners served as an advisor to Rural Broadband Investments. Kirkland & Ellis served as legal counsel and PriceWaterhouseCoopers served as accounting advisor to GTCR. SunTrust Robinson Humphrey served as exclusive financial advisor to GTCR.

GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $7 billion in assets under management. Since its inception in 1980, GTCR has invested more than $10 billion in over 200 companies. GTCR is based in Chicago (www.gtcr.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-14-13

Odyssey Acquires Fischbein

by

Odyssey Investment Partners has acquired Fischbein, a supplier of packaging machinery and material handling equipment, from a group of investors led by MSouth Equity Partners. The Fischbein senior management team has invested in the transaction alongside Odyssey and will continue to lead the company. The investment in Fischbein marks Odyssey’s 10th portfolio investment in Odyssey Investment Partners Fund IV.

“Fischbein is a market leader within each of its niche product applications and serves a variety of attractive end markets. We believe Fischbein is an excellent platform for expansion through organic growth and strategic add-on acquisitions, and we are excited to partner with Fischbein’s outstanding management team to continue Fischbein’s strong track record of growth,” said Dennis Moore, Principal of Odyssey.

Fischbein supplies packaging equipment and material handling products to customers across multiple end markets. Fischbein’s Packaging Equipment division provides components, systems and aftermarket replacement parts that fill, close, weigh and handle open mouth bags. Products are used in the agriculture, food, pet food, minerals and chemicals end markets. The Material Handling Group is a manufacturer of flexible and rigid conveyors used to load and unload non-palletized items on and off trucks in retail stores and distribution centers. Products are used in the retail, distribution center, parcel/post and e-commerce sectors. The company has 11 manufacturing and sales/distribution facilities throughout the US, Europe and Singapore and is headquartered in Suwanee, GA (ww.fischbein.com).

“The Odyssey team’s deep understanding of our industry and end markets will be a valuable resource as we build on our considerable experience in the packaging and material handling equipment sectors. Together with our new strategic partner, we plan to expand our capabilities to better serve existing and future customers, and to strategically enhance our growth prospects in North America and around the world,” said Jeff Reed, CEO of Fischbein.

Fischbein was represented by Sagent Advisors, an investment bank with offices in New York, Charlotte, Chicago, San Francisco, and McLean, VA (www.sagentadvisors.com).

Odyssey Investment Partners is a middle-market private equity firm with more than $3 billion under management. Odyssey makes control investments primarily in established middle-market companies in a variety of industries, including industrial manufacturing; business, financial and healthcare services; aerospace products; and localized and route-based service businesses. The firm has offices in New York and Woodland Hills, CA (www.odysseyinvestment.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-13-13

TowerBrook Acquires True Religion Apparel

by

True Religion Apparel has entered into an agreement to be acquired by TowerBrook Capital Partners in a transaction valued at approximately $835 million. Deutsche Bank, Jefferies, UBS Investment Bank and Macquarie Capital have provided committed financing to TowerBrook in support of this transaction. The transaction is expected to close in the third quarter of 2013.

True Religion Apparel designs, markets, sells and distributes denim jeans and sportswear under the brand name True Religion Brand Jeans to consumers in six continents, including North America, Europe, Asia, Australia, Africa and South America. The company sells directly to consumers in the United States through full-price retail stores, outlet stores and through its retail Internet site. True Religion was founded in December 2002 by Jeff Lubell and is headquartered in Los Angeles (www.truereligionbrandjeans.com).

“TowerBrook’s investment is an important endorsement of the True Religion brand, its prospects and the hard work and commitment of our team. At this critical inflection point in our business, global growth and product development effort, TowerBrook’s support and experience will be a true differentiator,” said Lynne Koplin, Interim Chief Executive Officer and President of True Religion. “TowerBrook’s long-term approach toward investment and brand stewardship will best enable True Religion to maintain its leadership position in the marketplace. We are confident the next chapter for True Religion will be a successful one for our employees, customers and all other stakeholders.”

TowerBrook Capital Partners makes control investments in large and middle market companies across and array of industries that are located in North America and Europe. TowerBrook has experience in the consumer retail and luxury space and has made control-oriented investments in companies such as Jimmy Choo, Odlo, BevMo! and Phase Eight. In February 2013, the firm held a first and final close of its fourth fund, TowerBrook Investors IV, L.P., at its hard cap of $3.5 billion. TowerBrook has offices in New York, London, and San Francisco (www.towerbrook.com).

“True Religion is an established, high-end brand with a strong retail network and a loyal following. We are excited to combine our retail and apparel expertise with Lynne Koplin and the True Religion team to help the company with brand building and international opportunities,” said Andrew Rolfe, Managing Director of TowerBrook.

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-13-13

HarbourVest Invests in CIFC to Pursue Investments in the US Senior Debt Market

by

HarbourVest Partners will make a minority investment in CIFC Asset Management in order to expand its presence in the US senior debt market. This relationship is a natural extension of HarbourVest’s strategy in the private credit markets. The firm began investing into credit funds in 1995, has provided mezzanine loans to private companies since 2003, and has been active in the European senior loan market since 2010.

“Private debt strategies have many of the same qualities as private equity investing – i.e. reliance on similar networks and information for deal sourcing and evaluation, medium-term investment horizons, structuring for downside protection and the potential to outperform the public markets. CIFC’s focus on U.S. senior secured corporate loans is a complement to our existing expertise across mezzanine debt, European senior loans, and private equity,” said Rob Wadsworth, managing director of HarbourVest.

HarbourVest provides investment programs for institutional investors to invest venture capital, buyout, mezzanine debt, distressed debt, and real estate. In over 25 years of investing in private equity, HarbourVest has committed more than $21.3 billion to newly formed funds, representing relationships with 200 private equity managers. The firm has also completed over $5.8 billion in secondary purchases and invested $3.6 billion directly in operating companies. HarbourVest and its subsidiaries have 230 employees, including 80 investment professionals in Boston, London, and Hong Kong (www.harbourvest.com).

“We are excited to be teaming up with HarbourVest and see significant opportunity to jointly deliver investment solutions focused on private debt. This relationship will have great synergy between our complementary organizations, and many of the private companies within our portfolios are backed by the same general partners with whom HarbourVest has long-standing relationships,” said Peter Gleysteen, Chief Executive Officer of CIFC.

CIFC Asset Management (NASDAQ:CIFC) has $11.8 billion in assets under management from senior secured corporate loan based products as of December 31, 2012. The firm was founded in 2005 and has 60 employees. CIFC is headquartered in New York (www.cifc.com).

“This strategic relationship with CIFC allows HarbourVest to continue to provide our clients with best of breed opportunities across the private markets including U.S. senior secured corporate loans exclusively with CIFC,” said Mr. Wadsworth. “With historically low interest rates expected to prevail for the foreseeable future, many institutional investors are interested in strategies that can provide higher current yields and the potential for strong returns over the long term.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-13-13

Oak Hill Promotes Tyler Wolfram to Managing Partner

by

Oak Hill Capital Management has promoted Tyler Wolfram from Partner to Managing Partner of the firm. Since joining Oak Hill Capital in 2001, Mr. Wolfram has led the investment activities in the firm’s Consumer, Retail & Distribution vertical, and he has been an active member of the Executive Committee and the Investment Committee.

“We are delighted to announce Tyler’s appointment to Managing Partner,” said J. Taylor Crandall, a Managing Partner of Oak Hill Capital. “Tyler has contributed significantly to Oak Hill Capital’s success over the past twelve years, sourcing and leading several highly successful transactions while establishing himself as a leader in the firm’s management, and we expect him to assume an even greater role leading the Oak Hill Capital franchise going forward.”

Mr. Wolfram has more than 20 years of private equity and leveraged finance experience. While at Oak Hill Capital, he has managed private equity investments in a number of companies, including Earth Fare, Dave & Buster’s, The Hillman Group, Duane Reade, NSA International, The Container Store, Caribbean Restaurants Holdings, and Oreck Corporation.

Prior to joining Oak Hill Capital, Mr. Wolfram served as a Managing Director at Cornerstone Equity Investors and as a Vice President in the high yield group of Donaldson, Lufkin & Jenrette. He earned an A.B. degree in Business Economics from Brown University and an M.B.A. from The Wharton School of the University of Pennsylvania.

Oak Hill Capital Partners has $8 billion of committed capital and invests in the following sectors: basic industries; business and financial services; consumer, retail & distribution; healthcare; media & telecom; and technology. Over the past 25 years, the professionals at Oak Hill Capital Partners and its predecessors have invested in more than 70 private equity transactions. The firm is located in Stamford, CT (www.oakhillcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-13-13

Warburg Pincus Closes Fund 11

by

Warburg Pincus has closed is 11th fund, Warburg Pincus Private Equity XI, L.P., with $11.2 billion of committed capital.

“We are pleased to announce our final close,” said Charles Kaye, Co-President of Warburg Pincus. “This successful fundraise, in a challenging environment, was driven by strong support from both existing and new investors. We see this success as a clear endorsement by our investors of our global growth investing model.”

The new fund’s limited partners include public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations and high net worth individuals. A significant number of the new investors in the fund are from outside of the United States. The firm held the final close of the fund within one year of the first close, as planned.

WP XI will continue to pursue a strategy the firm has followed for more than 40 years — partnering with management teams to build world-class companies. Warburg Pincus invests in businesses at all stages of development from start-ups and growth capital to special situations and buyouts. Sectors of interest include energy; financial services; healthcare; technology, media and telecommunications; and consumer and industrial services.

The final close of WP XI follows an active 2012 in which Warburg Pincus invested over $2.3 billion in 28 new companies and made follow-on investments into existing portfolio companies. Several of these new investments were made by WP XI including Venari Resources, a start-up company focused on deepwater exploration and production in the Gulf of Mexico; China Auto Rental, a car rental company in China; and InComm, a global prepaid product, services and transaction technologies company.

The firm has also been active in distributing capital back to investors in prior funds. Warburg Pincus’ funds distributed $6.2 billion to investors in 2012 and another $3 billion in the first quarter of 2013. Some of the companies contributing to this flow of distributions included Targa Resources, a midstream energy company; Ziggo, a cable TV company in the Netherlands; InTime, a department store chain in China; CAMP Systems, a software provider for business aircraft; and Kotak Mahindra, a financial institution in India.

“Our strong track record and continuing ability to both make and exit investments that generate attractive rates of return, regardless of economic cycle, is a testament to the firm’s focus on building durable businesses that deliver value over the long-term,” said Joseph Landy, Co-President of Warburg Pincus.

Warburg Pincus has more than $40 billion in assets under management and has raised 13 private equity funds which have invested more than $45 billion in approximately 675 companies in 35 countries. The firm was founded in 1966 and is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Port Louis, Mumbai, San Francisco, Sao Paulo and Shanghai (www.warburgpincus.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-10-13