Archives for 2014

Windjammer Promotes Matt Anderson to Principal

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Windjammer Capital Investors has promoted Matt Anderson to Principal.  Mr. Anderson’s responsibilities include deal sourcing, investment analysis, transaction execution, and investment management.

Prior to joining Windjammer in 2005, Mr. Anderson served in the Corporate Finance Group at GE Capital where he underwrote, closed and managed senior secured loans to middle market companies, totaling more than $3.0 billion of financing commitments. He received his Bachelors of Science degree from the University of Illinois and his MBA from the University of Southern California.  Mr. Anderson currently serves on the boards of JWC Environmental, Flinn Scientific and Infinite RF Holdings.

Windjammer Capital Investors makes control investments in middle market businesses with EBITDAs from $10 million to $40 million. Sectors of interest include advanced manufacturing, specialty distribution and business services.  Windjammer is currently investing out of its Windjammer Senior Equity Fund IV with capital commitments in excess of $725 million. The firm was founded in 1990 and is based in Newport Beach, CA and Waltham, MA (www.windjammercapital.com).

Mr. Anderson is based in Windjammer’s office in Newport Beach.

2014 PEPD • Private Equity’s Leading News Magazine • 12-16-14

Generation Growth Acquires Contrast Equipment

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Midway Industrial Supply, a portfolio company of Generation Growth Capital, has acquired Contrast Equipment Company.

Contrast Equipment Company is a finishing equipment system integrator and provides in-house paint system design and full service integrated systems utilizing their distributed product lines which include Nordson, Graco, Finishing Brands, Exel-Kremlin and Kayco Spray Booth systems. The company was founded in 1923 and is based in Kansas City, MO (www.contrastequipment.com).

Midway Industrial Supply, acquired by Generation Growth in January 2012, is a distributor and systems integrator of fluid handling and spray finishing equipment, accessories and consumables.  Midway serves a variety of customers in industrial and manufacturing verticals including: transportation, agricultural equipment, alternative energy, food and beverage and building products. The company distributes and integrates products from dozens of vendors, including: Graco, Binks, DeVilbiss, Ransburg, Nordson and Global Finishing Solutions. Midway Industrial Supply is based north of Minneapolis in Mounds View, MN (www.midwayis.com).

“Contrast’s reputation as a solutions-driven, liquid and powder coating system integrator, coupled with their excellent customer relationships, will enhance our company’s growth and allow us to expand into new markets,” said Patrick Hoolihan, President and CEO of Midway Industrial Supply.

Generation Growth Capital invests from $1 million to $10 million in manufacturing, service, and distribution businesses that have enterprise values of less than $30 million and sales ranging from $5 million to $50 million. Investments are primarily structured as equity but subordinated debt and warrant structures are also considered. The firm is headquartered in Milwaukee and has an additional office in Chicago (www.generationgrowth.com).

Contrast Equipment will operate as a wholly-owned subsidiary of Midway under the name Contrast Equipment, Incorporated.  Contrast’s employees and management team will continue to manage the operation while working with Midway in the integration of the two companies. Contrast will remain at its current Kansas City facility and Midway shall remain in its existing Mounds View, MN location.

Senior financing for the acquisition was provided by Anchor Bank.

2014 PEPD • Private Equity’s Leading News Magazine • 12-15-14

Grey Mountain Partners Acquires Honsador

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Grey Mountain Partners has acquired Honsador Holdings, a distributor of building products and electrical supplies.

Honsador is the largest independent distributor of building products and electrical supplies in the state of Hawaii, serving the residential, commercial, and military markets. The company operates out of two divisions: Honsador Lumber and Building Materials (LBM) and Alpha Electric (Alpha). LBM is the largest independent lumber and building materials distributor on the big island, and Alpha is the largest independent distributor of electrical products in the state of Hawaii.  Honsador was founded in 1935 and was originally known as Honolulu Sash and Door.   The company has seven locations in the Hawaiian Islands and is headquartered in Kapolei on the island of Oahu (www.honsador.com) (www.alphaelectricsupply.com), (www.hwthawaii.com) and (www.honsadorroofing.com).

“The company has developed a market leading position in the state of Hawaii due to the breadth and quality of its product offering, logistical mastery of moving products from the mainland to the islands, and unparalleled customer service,” said Beth Lesniak, Affiliate Manager at Grey Mountain.  “We are excited to work with the company as it grows the business by addressing additional contractor needs and serving new customers across the islands.  We believe the financial backing and operational support from Grey Mountain will allow the company to better serve its customers and pursue new opportunities in the market.”

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).

2014 PEPD • Private Equity’s Leading News Magazine • 12-15-14

Clearview Exits Battenfeld Technologies

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Clearview Capital has closed on the sale of its controlling interest in Battenfeld Technologies to Smith & Wesson for $130.5 million. Clearview first invested in Battenfeld in June 2012.

Battenfeld is a designer, importer and marketer of hunting and shooting accessories sold under the Caldwell, Wheeler, Tipton, Frankford Arsenal, Bog-Pod, Lockdown, GoldenRod and Non-Typical Wildlife Solutions brands. The company is based in Columbia, MO (www.battenfeldtechnologies.com).

“During the nearly three years of our ownership, Battenfeld’s terrific management team was able to almost double the size of the business with a combination of organic and acquisition growth,” said Calvin Neider, co-Managing Partner of Clearview Capital.  “We wish management and Smith & Wesson well as they continue to grow in the accessories segment.”

Clearview Capital was founded in 1999 by Jim Andersen and Cal Neider and is headquartered in Old Greenwich, CT with additional offices in Chicago and Los Angeles (www.ClearviewCap.com).

“Working with the team at Clearview has been a great experience; they gave us the support we needed while allowing us to operate the company in alignment with our management team’s vision,” said Battenfeld’s CEO Jim Gianladis. “Additionally, they were instrumental in helping us refine and execute our acquisition strategy which produced multiple successful add-on transactions.”

Clearview’s investment in Battenfeld was made through Clearview Capital Fund II, LP a 2006 vintage fund which is fully invested, and is the fifth complete exit the fund has achieved.  Robert W. Baird served as financial advisor to Clearview and Loeb & Loeb served as legal advisor to Battenfeld.

“Battenfeld is a great company,” said James Andersen, co-Managing Partner of Clearview. “When we acquired the company we were able to create an opportunity for management for the first time to own part of the enterprise they had helped to build while providing capital to augment the company’s organic growth with bolt-on acquisitions.”

Clearview’s other holdings include Northwest Cosmetic Laboratories, a formulator and manufacturer of cosmetic and skin care products; Novik, a manufacturer of polymer exterior siding and roofing products; St. Croix Hospice, a provider of palliative care for hospice patients; QC Supply, a wholesale distributor to the swine and poultry markets; GCR, a professional services firm delivering consulting and technology services to governmental and commercial clients; Child Health Holdings, dba Pediatric Health Choice, a provider of prescribed pediatric extended care centers for medically complex children; Pyramid Healthcare, a provider of substance abuse and mental health treatment programs for adults and adolescents; The Results Companies, a provider of customer relationship management solutions; QualSpec Group, a provider of mechanical integrity inspection and non-destructive examination services to the refining, petrochemical, power generation and other industries; and Senior Care/Active Day, the country’s largest operator of adult day care centers.

2014 PEPD • Private Equity’s Leading News Magazine • 12-15-14

Arsenal Sells Charter Brokerage to Berkshire

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Berkshire Hathaway is acquiring Charter Brokerage, a non-asset based third party logistics provider, from Arsenal Capital Partners which first invested in Charter in February 2008.

Charter Brokerage is a non-asset based third party logistics provider to the petroleum and petrochemical industries. Charter’s services include customs and export brokerage and compliance services, duty drawback consulting and processing, and administration of foreign-trade zone status jet fuel. The company was founded in 1994 and is based in Norwalk, CT (www.charterbrokerage.net).

“During our term of ownership we entered new markets and expanded into further service lines through organic initiatives and acquisitions.  Charter is a great fit with Berkshire Hathaway and we wish them further success,” said Jeffrey Kovach, co-founder and Partner of Arsenal.

Arsenal Capital Partners invests in middle-market specialty industrial and healthcare companies that have $50 million to $250 million in enterprise value.  Industries of specific interest include specialty & fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace & defense; and process industry components and services.  Arsenal has $1.7 billion of committed capital under management. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).

“Charter Brokerage is a high quality business with consistently strong financial performance that fits well within Berkshire Hathaway,” said Warren Buffett, Chairman and CEO of Berkshire Hathaway.

Berkshire Hathaway and its subsidiaries engage in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services. The company is headquartered in Omaha (www.berkshirehathaway.com).

Morgan Stanley & Co. served as financial advisor to Charter Brokerage.

2014 PEPD • Private Equity’s Leading News Magazine • 12-15-14

Gates Group Acquires Remprex

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Gates Group Capital Partners has made a substantial equity investment in Remprex, a service provider to intermodal rail facilities.

“We are very pleased not only to be part of an industry with enormous growth potential, but to partner with a company that is the clear segment leader,” said Mike de Windt, senior managing director and CEO for Gates Group. “Remprex’s success over its relatively short existence is a product of an extraordinarily talented management team coupled with revolutionary products and services. We are excited to partner with the management team to build upon their success going forward.”

Remprex provides managed technology, terminal operations, engineering and security services for intermodal transportation facilities. This includes the development of new terminals, facility retrofits and project management for railways throughout North America.  Remprex was founded in 2006 and serves many of the largest railways in North America. The company is based in Chicago (www.remprex.com).

With the closing of the transaction, James Shondel, the Remprex’s co-founder, has been elected chairman of the board and Emory Plitt III, the company’s current COO, has been elected president and CEO.  “We’re excited about having found a partner that brings the right amount of financial, operational and transportation experience to the table, said James Shondel. Together with Gates Group, Remprex will be better positioned to support our clients’ dynamic needs.

Gates Group Capital Partners invests in lower middle market operating businesses throughout North America that provide basic services within segments of the transportation industry. Typical targets will have EBITDAs from $3 million to $10 million.  The firm was founded in 2002 and is based in Cleveland (www.gatesgroupcp.com).

“Gates Group will support Remprex in its continuing effort to be the premier service provider to the intermodal industry,” said Mr. de Windt.  “Now more than ever, the Class 1 rails need the safest and most efficient terminal operations available in order to meet the increasing demand for intermodal services.”

2014 PEPD • Private Equity’s Leading News Magazine • 12-15-14

Tailwater Closes Third Fund Above Target

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Tailwater Capital, an energy-focused private equity firm, has closed its third fund, Tailwater Energy Fund II LP at $650 million.  Launched in early 2014 with a target of $400 million, Fund II had its final close on December 5, 2014 at its hard cap.

“We’re grateful to have the opportunity to continue investing on behalf of our supportive investor base, and we look forward to working with our new limited partners,” said Edward Herring, Managing Partner of Tailwater Capital. “We believe our deep sector expertise will enable us to capitalize on the attractive fundamentals of the domestic energy market utilizing our disciplined, solutions-oriented investment approach.”

Tailwater Capital was founded in 2013 and is led by founding partners Edward Herring and Jason Downie, who have worked together for 16 years and executed 35 transactions representing $11 billion of transaction value. Tailwater has raised more than $1.4 billion across three funds, Tailwater Energy Fund I, Tailwater E&P Opportunity Fund and the recently closed Fund II.  The firm is headquartered in Dallas (www.tailwatercapital.com).

“We will continue partnering with talented management teams to pursue platform investments in this dynamic sector,” said Mr. Downie.  “The Tailwater team continues to grow, and we are excited to be making new investments at a time in which midstream infrastructure is in such acute need.”

Capstone Partners (www.csplp.com) served as the placement agent for Fund II and Weil, Gotshal & Manges provided legal counsel.

2014 PEPD • Private Equity’s Leading News Magazine • 12-15-14

New Co-Heads of Investment Banking at Janney

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Investment bank Janney Montgomery Scott has promoted Cliff Booth and Joseph Culley, Jr. to Co-Heads of Investment Banking.

“We are very excited to promote two of our top bankers who are also long-standing members of the Investment Banking division and are well respected within the industry,” said Jordie Maine, Executive Vice President and Head of Capital Markets. “Both Cliff and Joe have proven themselves to be excellent leaders, able to effectively capitalize on changing market trends.”

Mr. Booth joined Janney’s Investment Banking team in 2008, and, in addition to his new responsibilities, he will continue to play an active role in managing the Financial Institutions and Real Estate Groups. Prior to joining Janney, he was Head of the Financial Institutions Investment Banking Group at Ferris, Baker Watts, and in the Real Estate Investment Banking Group of First Union Securities.  He received a BS in finance from Syracuse University, and an MS in finance from The George Washington University.

Mr. Culley joined Janney in 2000 and will also continue to play an active role in managing the Infrastructure Group while expanding his oversight of the Investment Banking division. He is currently serving on the Board of Managers of Janney Montgomery Scott and on the Board of Directors of the Mann Center for the Performing Arts. Mr. Culley previously served on the Board of Governors of the Philadelphia Securities Association. Mr. Culley received a BA in Economics from Swarthmore College.

Janney Montgomery Scott is a wealth management, financial services and investment banking firm headquartered in Philadelphia (www.janney.com).

2014 PEPD • Private Equity’s Leading News Magazine • 12-15-14

Lovell Minnick Acquires Unclaimed Property Recovery & Reporting

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Keane, an unclaimed property services provider and a portfolio company of Lovell Minnick Partners, has acquired Unclaimed Property Recovery & Reporting and its subsidiary, UPRR Securities.  Lovell Minnick acquired Keane from DFW Capital Partners and Maranon Capital in February 2014.

Unclaimed Property Recovery & Reporting (UPRR) provides outsourced unclaimed property services to corporations to minimize the liability and risk associated with unclaimed property. The company was founded in 1996 and is headquartered in New York (www.uprrinc.com).

Keane is a provider of outsourced unclaimed property services.  Keane provides corporations, mutual funds, banks, brokerages, insurance companies and transfer agents with a suite of outsourced services, including locating account owners or beneficiaries, risk mitigation, customer communication programs, recovery of escheated assets, consulting, reporting and other unclaimed property compliance-related services.  Keane has approximately 200 employees and is headquartered in New York. The company has an operating facility in King of Prussia, PA, and other satellite offices across the country (www.KeaneUP.com).

With the acquisition of UPRR, Keane now provides unclaimed property services to more than 2,000 public corporations, banks, broker-dealers, mutual funds, insurance carriers, and transfer agents.

“This acquisition is ideal for the industry, as the services offered by both Keane and UPRR complement each other perfectly,” said Keane Chief Executive Officer, Michael O’Donnell. “Through the combination of each of our advanced owner location service platforms, clients of both Keane and UPRR will now have access to an even greater suite of services to assist their shareholders, customers, and investors.”

Lovell Minnick Partners provides buyout and growth capital to companies in the financial services industry. Lovell Minnick manages private equity partnerships with committed capital totaling over $850 million. The firm is the successor to the private equity affiliate of Putnam Lovell Securities which was established in 1999 by Jeffrey Lovell and James Minnick. Lovell Minnick has offices in Philadelphia and Los Angeles (www.lovellminnick.com).

2014 PEPD • Private Equity’s Leading News Magazine • 12-12-14

Gores Group Acquires Origin Healthcare Solutions

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Meridian Medical Management, a provider of revenue cycle management services and a portfolio company of The Gores Group, has acquired Origin Healthcare Solutions.

“With a clear vision for the future of healthcare, we are excited to continue to invest in Meridian as they provide the right solutions for healthcare providers’ long-term business success,” said Victor Otley, Managing Director for The Gores Group.

Origin Healthcare Solutions is a provider of revenue cycle management (RCM) services and analytics to tens of thousands of physicians and healthcare providers nationwide.  Origin’s services are used to increase financial and clinical performance and improve workflow efficiency.  The company, founded in 1991, has more than 400 employees and is headquartered in Chicago (www.originhs.com).

Meridian Medical Management provides revenue cycle management, electronic medical records & IT programming and support services to large, multi-specialty physician groups and academic practice plans.  The company was formed by Gores through the March 2013 acquisition of GE Healthcare Strategic Sourcing. Meridian Medical is headquartered in Wilbraham, MA (www.m3meridian.com).

On a combined basis, Meridian and Origin now service over 40,000 healthcare providers nationwide.

“Origin is a critical addition to the Meridian portfolio, providing a comprehensive range of revenue cycle and analytics services to our clients through more strategic clinical and financial reporting and business insights,” said Rob Gontarek, CEO of Meridian. “This enables our combined client base to not only reap the expertise of proven RCM technology but also better manage population health and make use of big data – both of which are critical to business and financial success as healthcare continues to evolve.”

The Gores Group makes control investments in non-core, underperforming or undervalued businesses in the United States and Europe. The firm maintains an in-house team of over 60 M&A and operations professionals in the US and Europe. The Gores Group was founded in 1987 and is headquartered in Los Angeles with additional offices in Boulder, CO and London, UK (www.gores.com).

2014 PEPD • Private Equity’s Leading News Magazine • 12-12-14

Inverness Graham Exits RacoWireless

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Inverness Graham has sold its portfolio company RacoWireless to strategic acquirer KORE Wireless Group in an all-cash transaction. Inverness Graham acquired RacoWireless in September 2012.

RacoWireless is a provider of a cloud-based, machine-to-machine (M2M), wireless connectivity platform that is used by businesses to build, deploy, visualize, analyze and manage their “Internet of Things” and M2M systems.  The company is headquartered north of Cincinnati in Blue Ash, OH (www.racowireless.com).

During Inverness Graham’s two-year term of ownership, RacoWireless executed an organic and acquisitive growth strategy that more than doubled revenue and increased EBITDA by over five times.  Inverness Graham and management transformed the company from a pure-play Mobile Virtual Network Operator providing cellular connectivity services to a global Platform-as-a-Service provider, offering a suite of end market and hardware agnostic services for the Internet-of-Things.

“Our success with the RacoWireless investment highlights our focus on partnering with great management teams who lead companies in growing, attractive markets where focused organic and acquisitive growth can transform their business,” said Michael Morrissey, Managing Principal of Inverness Graham.  “The strategic acquisition of Position Logic in July 2013 moved RacoWireless up the software stack and transformed its capabilities in the marketplace.   Over our short hold, the company made key strategic investments in its networks, software development capability and team, building out a group of over fifty software engineers. This all occurred while delivering high double-digit top and bottom line growth, making it a very attractive target for strategic acquisition.”

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. The firm 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. Inverness Graham is based near Philadelphia in Newtown Square, PA (www.invernessgraham.com).

“The partnership with Inverness Graham worked extremely well,” said Rob Adams, CEO of RacoWireless.  “The Internet-of-Things is a fragmented and complex industry. We wanted a partner who could support us as we executed a focused strategy in a dynamic and growing marketplace.  Inverness provided more than just the capital to grow and make acquisitions, they were our partners every step of the way.”

Inverness Graham was represented by attorneys Paul Hastings and investment bank William Blair in the sale process.

2014 PEPD • Private Equity’s Leading News Magazine • 12-12-14

Azalea and Argosy Partner Up with Ranger Aerospace

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Azalea Capital, Argosy Private Equity, and Ranger Aerospace have formed Ranger AeroSystems to pursue investments and acquisitions in the aerospace industry.  This marks the third time that Ranger and Argosy have affiliated in the past dozen years.

“It’s a privilege to have major investors like Argosy join us multiple times—that speaks volumes. Azalea and Argosy are great teammates with Ranger,” said Steve Townes, Ranger Aerospace CEO and founder.  “This consortium of proven experts aims to create a large and lasting enterprise. With two substantial institutional co-investors, we now have plenty of capital and plenty of time for building a strong platform. We’ve done this before—we’re doing it again.” Argosy was a major investor in Ranger’s previous successful investments with both Keystone Helicopter and Ranger International.

Ranger AeroSystems will look to acquire aerospace companies with at least $10 million in revenues or EBITDA above $2 million. The firm has specific interest in (a) Precision Manufacturing – sole source and limited source highly engineered flight critical parts on long life airborne platforms, both fixed wing and rotary wing; (b) Component Overhaul – value-added services for components, rotables, and sub-assemblies on any airborne system, with special emphasis on actuating systems; (c) Specialty “Niche” MRO (maintenance, repair, and overhaul) – technical services companies with unique value propositions in supporting commercial or military aircraft.  Investing in other aerospace segments will be considered if there is a sound consolidation strategy that can be carried out.

Ranger AeroSystems’ first investment closed in November 2014 with the buy of a components overhaul and retrofit company serving the commercial airlines fleets.

Ranger Aerospace is a private equity consolidator specializing in aerospace operations and aviation services.  Ranger adds value to its investments by focusing on operational improvements and accelerated growth. Previous successful investments include Aircraft Service International Group, Keystone Helicopter, and Ranger International. Ranger’s ventures have employed up to 4,250 employees, with operations at as many as 56 airfields and operating sites in North America, Latin America, Europe, Middle East, and Pacific.  The firm was founded in March 1997 and is based in Greenville, SC (www.rangeraerospace.com).

Azalea Capital, the lead investment group in Ranger AeroSystems, invests in middle market companies that have minimum annual revenues of $10 million and EBITDAs of $2 million to $10 million.  Industries of interest include manufacturing, business services, and value-added distribution with a special interest in aerospace, consumer packaged goods, healthcare and energy and industrial services.  Azalea Capital was founded in 1996 and is headquartered in Greenville, SC (www.azaleacapital.com).

Argosy Private Equity invests from $4 million to $10 million in lower middle market companies with revenues of $15 million to $100 million and EBITDA margins of 10% or greater.  Sectors of interest include manufacturing, business services, value-added distribution and aerospace.  The firm has approximately $750 million in assets under management.  The affiliation with Ranger Aerospace is through Argosy’s latest SBIC-supported private equity fund, which was capitalized with a target of $250 million.  Argosy Private Equity was founded in 1990 and is headquartered in the Philadelphia suburb of Wayne, PA (www.argosycapital.com).

2014 PEPD • Private Equity’s Leading News Magazine • 12-12-14

Turnspire Adds New Operating Partners

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Turnspire Capital Partners has added four new operating partners to its team with the additions of Joseph Bondi, Mark Borseth, Neil Minihane and Val Shtraks.  The new partners bring extensive operational and sector expertise that will be used by Turnspire as it invests in special situations in the broader manufacturing space.

The operating partners will be involved in many parts of the investment lifecycle, ranging from due diligence, to working with portfolio companies to identify and implement operational enhancements, to advising on strategic growth initiatives.  “Working with experienced and savvy executives is a core element of our hands-on, operationally focused strategy designed to drive sustainable improvements in controllable costs, margins and cash flow,” said Ilya Koffman, a Managing Partner of Turnspire.  “We are excited to formalize our relationships with Joe, Mark, Neil and Val, each of whom brings invaluable experience and perspectives to Turnspire.”

Turnspire Capital Partners invests up to $30 million in companies with revenues between $25 million and $300 million. The firm prefers companies that are underperformers and/or in need of an operational turnaround.  Sectors of interest include aerospace and defense; automotive; capital equipment; chemicals; consumer; construction and building materials; engineered products; food and beverage; industrial equipment; logistics (asset heavy); metals and metal fabrication; paper and packaging; and plastics and synthetic materials.  Turnspire is led by its founders Michael Khutorsky and Ilya Koffman and is based in New York (www.turnspirecap.com).

Here are the backgrounds on the four new operating partners:

  • Joseph Bondi has extensive experience in turnarounds, restructurings and interim management.  He spent more than 25 years at Alvarez & Marsal, a professional services firm that delivers performance improvement, turnaround management and business advisory services, where he was a Managing Director and co-head of the United States turnaround and restructuring practice.  Mr. Bondi has served in a number of executive positions, including CEO, CRO and Chairman, of companies requiring strategic, financial and operational change.
  • Mark Borseth has over 30 years of executive, financial, operational and turnaround experience in the manufacturing space.  He was most recently Chief Financial Officer of Constar International, a manufacturer of plastic bottles for the food and beverage industry.  Prior to Constar, he was Chief Financial Officer of Eclipse Aviation, a privately held manufacturer of jet aircraft for the general aviation market.  Prior to Eclipse Aviation, he spent over 20 years in functional and operational leadership roles at 3M.
  • Neil Minihane has nearly 20 years of experience as an operations focused executive.  He is the Principal and founder of Turn Works LLC, where he has spent more than 15 years implementing operational changes to increase the profitability and efficiency of companies that are mature and/or underperforming. Prior to forming Turn Works, he served as a Vice President of Operations with The Heico Companies, which was a turnaround private equity firm.
  • Val Shtraks has over 30 years of executive, financial, operational and engineering experience.  He is a co-founder and Managing Partner of Bath Authority LLC (DBA DreamLine), a designer, manufacturer and marketer of branded shower doors, tub doors and shower-related products.  He is also the President of Zhongshan DomuStar Shower Company Limited, Bath Authority’s wholly foreign-owned enterprise affiliate in China.

“We look forward to working with our operating partners as we execute our strategy of acquiring high-quality companies, both healthy and distressed, with significant opportunities to create value through operational improvements,” said Turnspire Managing Partner Michael Khutorsky.  “We will continue expanding our relationship network with like-minded executives to work with Turnspire to drive best-in-class practices for our businesses and deliver value to our stakeholders.”

2014 PEPD • Private Equity’s Leading News Magazine • 12-12-14

Vector Promotes Two to Managing Director

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Vector Capital has promoted Alex Beregovsky and Andy Fishman to Managing Director.  The firm invests in spinouts, buyouts and recapitalizations of private or public technology businesses.

“We are extremely proud of what Alex and Andy have accomplished,” said Alex Slusky, Vector Capital’s Chief Investment Officer. “After joining us shortly after business school, they have grown into management roles at Vector, delivering both thought leadership and investment returns to the firm.  Their success further validates Vector’s commitment to advancing its performers and promoting from within.”

Andy Fishman joined Vector in 2008. He leads Vector’s applications software team and currently serves on the board of Allegro Development. Mr. Fishman was previously a Director of RAE Systems (acquired by Honeywell), Teletrac (acquired by Danaher), and Aladdin Knowledge Systems (merged with SafeNet).  Prior to joining Vector, he was an investment professional at Silver Lake Partners and an investment banker at Goldman Sachs. Mr. Fishman also worked at the Massachusetts Institute of Technology Artificial Intelligence Lab and at Sun Microsystems as a software engineer. He received his MBA from the Stanford Graduate School of Business and his BA in computer science from Dartmouth College.

Alex Beregovsky joined Vector in 2010. He leads Vector’s team focused on internet services, financial technology, and security. He currently serves on the boards of WatchGuard Technologies and Tidel Engineering. Prior to joining Vector, he was an investment professional at Viking Global Investors and Francisco Partners, an investment banker at Banc of America, and a quantitative strategies consultant at Goldman Sachs. Mr. Beregovsky received his MBA from the Stanford Graduate School of Business and his BA in mathematics, economics, and computer science from New York University.

Vector Capital is based in San Francisco (www.vectorcapital.com).

2014 PEPD • Private Equity’s Leading News Magazine • 12-12-14

Genstar Capital Acquires Tri-Delta Plastics

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Pretium Packaging, a supplier of custom blow molded packaging and a portfolio company of Genstar Capital since June 2014, has acquired Tri-Delta Plastics.

“We are excited to be supporting Pretium in its first acquisition under Genstar’s ownership. Funding growth initiatives is a key aspect of Genstar’s investment philosophy, and we will continue to work closely with Pretium management to aggressively pursue future growth opportunities, both organic and through strategic acquisitions,” said David Golde, who leads Genstar Capital’s packaging investing efforts.

Tri-Delta is a manufacturer of rigid packaging products used in the food, healthcare, and household chemicals end markets. Products include containers, bottles, and closures that are used primarily within the spice and seasonings end market. Tri-Delta is based in Hillsborough, NJ (www.trideltaplastics.com).

“Very early in our sale process it became clear to me that Pretium Packaging would be the best home for our company as both organizations share a commitment to serving our customers in every way possible,” said Thomas Dolan, Owner and President of Tri-Delta.  “Importantly from my perspective, Pretium completed its due diligence expeditiously and understood how to work with a family-run business in terms of what to ask and how to complete the process.”

Upon completion of the transaction, Mr. Dolan plans to retire following more than two decades of building the company and will continue as an advisor during its transition to Pretium.

Pretium Packaging is one of the nation’s largest manufacturers of customized, high performance rigid plastic bottles and containers. The company has capabilities in all major resin types and manufacturing processes and is primarily focused on customers with small-to-medium volume requirements. Pretium sells its products to a customer base of over 600 companies, ranging from Fortune 500 companies to smaller privately-owned businesses in the food & specialty beverage, private label, pharmaceutical, personal care and household & industrial sectors.  Pretium is headquartered near St. Louis in Chesterfield, MO (www.pretiumpkg.com).

“This transaction is in-line with our strategy to build Pretium both organically and through selective acquisitions that expand our markets, technologies and geographic reach to allow us to better serve our customers.  We are very pleased with the strong pipeline of potential transactions of independent manufacturers from which we continue to identify new strategic growth opportunities,” said George Abd, President and CEO of Pretium.

Genstar Capital invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million.  Genstar manages approximately $3 billion of committed capital and targets investments in the industrial technology, financial services, software, and healthcare industries.  The firm was founded in 1988 and is based in San Francisco (www.gencap.com).

P&M Corporate Finance served as financial advisor to Tri-Delta and Mr. Dolan.

2014 PEPD • Private Equity’s Leading News Magazine • 12-11-14

Corinthian Capital Invests in MetroGistics

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Corinthian Capital Group has made an investment in MetroGistics, an asset-light automotive logistics company. MetroGistics will partner with Corinthian Capital’s current automotive logistics portfolio companies – Precision Motor Transport Group (PMTG) and McNutt Automotive Logistics – to offer a full range of automotive logistics and transportation services.

“MetroGistics has revolutionized the asset-light automotive logistics industry with its unparalleled technology platform,” said Jim McNair, Senior Managing Director of Corinthian Capital. “We’re excited to have the company’s impressive management team join PMTG’s and McNutt’s leadership and improve eacsh entity’s client offerings.”

MetroGistics is an asset-light automotive logistics technology company specializing in long-haul brokerage services for original equipment manufacturers, rental car companies, major dealer groups, fleet lease companies, and automotive auction houses. The company is headquartered in St. Louis.  Bill Billiter and Scott Naz, the existing management at MetroGistics, will continue to lead the company (www.metrogistics.com).

PMTG is an asset-heavy car haul company based near Lansing in Okemos, MI, which provides automotive delivery services to OEMs through a fleet of 300 enclosed and open company-owned trucks (www.pmtghome.com). Corinthian acquired PMTG in October 2008.

McNutt is an asset-light automotive logistics provider that specializes in less-than-truckload brokerage services. The company is based south of Kansas City in Lowry, MO (www.mcnuttlogistics.com).

Corinthian Capital invests in niche manufacturing, distribution, and service businesses with EBITDAs between $10 million and $30 million located primarily in North America.  Corinthian Capital is based in New York with additional offices in Chicago and Boston (www.corinthiancap.com).

Patriot Capital (www.patriot-capital.com) made a subordinated debt and equity investment in MetroGistics to support the transaction. Patriot Capital invests senior and subordinated debt and equity in small and medium-sized privately-held companies that have annual revenues of $10 million to $200 million. Investment sizes range from $3 million and $20 million.

2014 PEPD • Private Equity’s Leading News Magazine • 12-11-14

Strategic Value Partners Closes Fund III Above Target

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Distressed and deep value investor Strategic Value Partners (SVP) has held a final close of Strategic Value Special Situations Fund III (SVSS III), raising a total of $1.31 billion in commitments.

The final closing brings the total for the strategy to $1.56 billion, including $250 million of reserved capacity for a “fund-of-one” limited partner relationship. This is well above the $1 billion original target and is higher than SVP Global’s Fund II, which had $918 million in commitments.

The investor base for SVSS III is diverse and international, including investors from the US, Europe, Australia, the Middle East and Japan. Investors representing nearly 90% of the capital in the predecessor fund, SVSS II, have re-upped into SVSS III.

Fund II’s investment criteria and strategy will be the same as that of its predecessors, Special Situations Funds I and II, and will invest in the distressed debt of middle-market companies and assets where SVP can exert influence in both financial restructurings and operational improvements.

SVSS III is already 42% called. The fund has capitalized on the increasing sales by European banks of distressed assets and loans on both sides of the Atlantic. While SVSS III has a global mandate, its investments are expected to be more focused on Europe than previous funds.

“We are delighted to be announcing the successful close of SVSS III and are extremely grateful for the trust and support that we have received from investors, both existing and new,” said Victor Khosla, Founder and Chief Investment Officer of SVP Global.  “With more than 10 years of experience in Europe, we are well positioned to seize the opportunities being generated by increasing European bank disposals.”

SVP Global is focused on distressed and deep value investments and creates value in these investments through its substantial industry, restructuring and operating experience. The firm employs more than 100 individuals, including an investment team of 34 professionals, over half of whom are based in Europe. SVP Global was founded in 2001 by Victor Khosla and has offices in Greenwich (CT), London, Frankfurt and Tokyo (www.svpglobal.com). 

2014 PEPD • Private Equity’s Leading News Magazine • 12-11-14

Guardian Adds 2 Senior Managing Directors to Manage PE

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The Guardian Life Insurance Company of America has strengthened its investment operation by creating two new management positions.  Doug Dupont joins as the Senior Managing Director of Asset Allocation and Fixed Income Portfolio Management and Doug Niemann joins the company as the Senior Managing Director of Asset Liability and Equity Portfolio Management.

Both will report to Thomas Sorell, Executive Vice President and Chief Investment Officer, and they will be responsible for the firm’s investment policy and strategies for more than $65 billion in assets including investments in both public and private equity, fixed income, and commercial real estate. “We are thrilled to welcome Doug Dupont and Doug Niemann to Guardian’s investment management team,” said Mr. Sorell. “Their unique combination of experiences in asset management and investment strategy will strengthen our operations and they will continue to apply a prudent investment philosophy that keeps our clients’ best interests in mind.”

Doug Dupont most recently served as Managing Director and Head of Portfolio Management at Allstate Investments where he was responsible for investment strategies to support products, communicating investment results and maintaining relationships with risk, finance and business groups to provide economic projections.  As the Senior Managing Director of Asset Allocation and Fixed Income Portfolio Management at Guardian, Mr. Dupont will have oversight of asset allocation, public fixed income, convertibles securities, private placements, credit research, and quantitative risk management. He received his Bachelor of Science in Actuarial Science and Mathematics from the University of Wisconsin.

Doug Niemann most recently served as Managing Director, Chief Investment Strategist, Global Insurance Solutions at JPMorgan Asset Management, where he developed investment products and vehicles to improve balance sheet management, enhance operating income and reduce portfolio risk profiles. Prior to joining JPMorgan he was the Managing Director and Head of Asset Liability Management at AIG Asset Management. Prior to AIG, Mr. Niemann was Head of Asset Liability Risk for Zurich Financial Services in Switzerland.  As the Senior Managing Director, Asset Liability and Equity Portfolio Management at Guardian, Mr. Niemann will have oversight of investments asset liability management, derivatives risk management, equity portfolio management, investment technology, and compliance.  He received his Master in Business Administration in Risk, Insurance and Investments from the University of Wisconsin and a Bachelor of Arts in Economics from Northwestern University.

The Guardian Life Insurance Company of America serves individuals, business owners and their employees with life, disability income and dental insurance products, and offer funding vehicles for 401(k) plans, annuities and other financial products.  The company has approximately 5,000 employees in the United States and a network of over 3,200 financial representatives in more than 80 agencies nationwide.  Guardian Life was founded in 1860 and is headquartered in New York (www.GuardianLife.com). 

2014 PEPD • Private Equity’s Leading News Magazine • 12-11-14