Archives for 2014

LLR Continues to Add Government Operating Partners

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LLR Partners, continuing its strategy of adding senior government officials to its staff, has hired former Assistant Secretary of State, the Honorable Dr. John Hillen, as an operating partner. This hiring follows the November 2013 addition of Ira (Gus) Hunt, former Chief Technology Officer of the Central Intelligence Agency, as an operating partner.  In his new role at LLR, Dr. Hillen will evaluate investment opportunities in the Security, Defense & Government Services sectors, as well as support the leadership and strategy development of LLR’s existing portfolio companies.

Dr. Hillen was most recently President and CEO of Sotera Defense Solutions, formerly Global Defense Technology & Systems. At Sotera he led the company’s diversification and acquisition strategy, followed by its IPO in 2009, and ultimately took the company private in 2012. Dr. Hillen also served as the 2012-2013 Chairman of the Professional Services Council, the government contracting industry’s largest trade organization.

“John is a thought leader within the government contracting industry and a deeply experienced executive. He has executed the same growth strategies and led businesses through the same challenges that our companies face today,” said Dave Stienes, partner at LLR. “John built a sub-$100 million business into a $300 million business, while dramatically diversifying the company and placing it in areas of importance within its government client community. The depth of his operational and industry experience will make John an invaluable advisor, board member and mentor to our portfolio company CEOs.”

From 2005 to 2007, Dr. Hillen served as Assistant Secretary of State for Political-Military Affairs, responsible for coordinating America’s diplomatic strategy with its military operations. He also oversaw the State Department’s policies for international security, security assistance, military operations, weapons removal and abatement and defense trade.

“I am excited for the opportunity to work with LLR and help more government contractors grow by drawing from my own lessons learned as a CEO and federal official,” said Dr. Hillen. “There are few private equity firms as knowledgeable about this sector and as committed to putting capital towards its growth. Teaming up with LLR makes the most of my experiences and industry network.”

Prior to his business career, Dr. Hillen worked as a military policy expert and served for 12 years as an Army officer. He is the author or editor of several books on international security and has been published in dozens of leading journals and newspapers, including the New York Times and the Wall Street Journal. A veteran of several think tanks including the Council on Foreign Relations, he was for many years a contributing editor at National Review and an ABC News commentator. He currently serves on the Chief of Naval Operations Executive Panel, the federal advisory committee supporting the head of the U.S. Navy.

Dr. Hillen graduated from Duke University, holds a Master’s Degree from King’s College London, a doctorate from Oxford and received his MBA from the Johnson School of Management at Cornell.

LLR Partners invests in technology and service businesses that have annual revenues of $25 million to $250 million. The firm’s target companies include those that serve commercial and government clients in the physical and cyber security markets, as well as government contractors to the US homeland security, defense, intelligence and healthcare agencies. LLR is currently investing out of its fourth fund with $930 million of capital commitments. The firm has offices in Philadelphia, PA and Arlington, VA (www.llrpartners.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-8-14

Swander Pace Invests in aden + anais

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Swander Pace Capital has made an investment in aden + anais, a provider of infant and juvenile products.

“We are excited to partner with the aden + anais management team and help them continue to create high-quality products for parents and their children,” said Swander Pace Capital Managing Director Corby Reese. “We strongly believe in the aden + anais brand and look forward to supporting the business in its next phase of growth.”

Aden + anais is a provider of infant and juvenile products including multi-purpose swaddles, bibs, security blankets, sleeping bags, nursery bedding, and other bath & body products. The company was founded in 2006 by working-mother-of-four, Raegan Moya-Jones, and is based in Brooklyn, NY (www.adenandanais.com).

“This partnership with Swander Pace Capital will provide us the tools we need to build upon the strong growth that we have seen in the last several years,” said Ms. Moya-Jones. “I look forward to working with Swander Pace Capital, an experienced partner in the consumer goods space, to build on our success and reach even more parents and caregivers.”

Swander Pace Capital invests in middle-market consumer products companies including branded and non-branded, manufacturers, marketers, and distributors that sell through a range of retail and institutional channels. The firm generally targets companies that have up to $300 million in revenues. Swander Pace was founded in 1996 and has offices in San Francisco, CA, Bedminster, NJ, and Oakville, ON (www.spcap.com).

“Our investment in aden + anais represents an opportunity to expand our consumer products-focused portfolio with a leading infant and juvenile products brand,” said Swander Pace Capital Director Heather Smith Thorne. “We see great potential for the brand and look forward to working closely with Raegan and her team to achieve new levels of success.”

Harris Williams served as the exclusive advisor for aden + anais, while O’Melveny & Myers served as legal counsel. Kirkland & Ellis provided legal counsel to Swander Pace Capital.

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-7-14

Rotunda Capital Acquires Discount Ramps

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Rotunda Capital Partners has acquired a majority stake in Discount Ramps in partnership with Rotunda’s operating executive, Larry Marmon, and Discount Ramps’ founder, Joel Lederhause.

Discount Ramps is an online retailer of loading, hauling and transportation products. The company has more than 11,000 products and primarily services the powersport, medical, recreational, commercial, transportation, military and industrial markets. Discount Ramps is based in West Bend, WI (www.discountramps.com).

Rotunda’s operating executive Larry Marmon will become the CEO of Discount Ramps and will work with Bob Krolski, who will stay on as chief operating officer. Joel Lederhause, the company’s founder, will serve on the board of directors and will remain as a consultant to the company and retain a significant ownership stake. Pat Davidson, formerly the senior vice president of sales, marketing and e-business for W.W. Grainger, will join the board as an independent director.

“Rotunda is an ideal partner for Discount Ramps given the firm’s deep knowledge of e-commerce, catalog and distribution businesses; its extensive operating executive network; and its successful history of working with family businesses. Partnering with Rotunda strongly positions us to continue executing our expansion plan,” said Joel Lederhause.

Rotunda Capital invests in businesses with enterprise values of $5 million to $100 million. Sectors of interest include specialty finance, logistics and distribution, government and business services. Since founding in 2009, Rotunda Capital has completed six platform investments and realized two exits. The firm has offices in Washington, DC and Chicago (www.rotundacapital.com).

“Discount Ramps has been successful by providing innovative products at factory-direct prices with outstanding customer service and support. We believe that Discount Ramps has a terrific management team, an extraordinary growth trajectory and a tremendous opportunity to expand its platform,” said Corey Whisner, a partner at Rotunda. “We believe the addition of Larry Marmon to the management team will be a catalyst to further accelerate Discount Ramps’ growth.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-7-14

Falconhead Exits NYDJ Apparel

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Falconhead Capital has sold its portfolio company NYDJ Apparel, a women’s denim apparel brand, to Crestview Partners and Maybrook Capital Partners. The sale of NYDJ is Falconhead’s third recent exit following the sale of Escort in October 2013 and Competitor Group in December 2012.

NYDJ Apparel offers a range of on-trend and figure-flattering products to sophisticated, style-conscious women. The company is headquartered near Los Angeles in Vernon, CA (www.nydj.com).

During the course of ownership, Falconhead expanded NYDJ Apparel’s sales in both domestic and international markets, and successfully entered the market for tops (shirts, blouses and other items) and began to sell merchandise through its website.

“We invested in NYDJ five years ago because we saw a compelling opportunity to build a leading apparel company for a clearly underserved market. Together with the NYDJ management team we assembled, we executed a range of growth initiatives such as expanding the company’s product line, deepening relationships with retail partners and diversifying distribution channels,” said David Moross, chairman and chief executive officer of Falconhead Capital. “I am delighted that we have been able to realize our vision for NYDJ and that the company now enjoys a strong leadership position in the women’s apparel industry. We are proud of our investment in NYDJ and wish the company continued success.”

Falconhead Capital invests in consumer-oriented companies in the sport, leisure, lifestyle, and media categories that have revenues between $20 million and $150 million and EBITDA between $5 million and $30 million. Typical equity investments range from $10 million to $50 million per transaction and up to $100 million with co-investors. Falconhead Capital was founded in 1988 and is based in New York (www.falconheadcapital.com).

Morgan Stanley & Co. acted as financial advisor to NYDJ Apparel. Weil, Gotshal & Manges acted as legal counsel to Falconhead and NYDJ.

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-7-14

TA Associates Acquires Majority Interest in Towne Park

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TA Associates has made a majority investment in Towne Park, a provider of outsourced parking management services. As part of the transaction, Towne Park management maintained a significant stake in the company. In addition, existing investor Camden Partners sold its stake in Towne Park and HarbourVest Partners, also a current shareholder, re-invested in the company.

Towne Park is a provider of outsourced parking management and other specialized hospitality services to the hotel and healthcare industries. Towne Park’s services include valet parking, self-parking, door service, bell service, patient transportation, employee support, concierge, shuttle transport and event services. The company has 8,500 employees serving more than 530 customers in 50 markets across the United States. Major hospitality clients include Four Seasons Hotels & Resorts, Hilton Worldwide, Hyatt Corporation, Loews Hotels & Resorts, Marriott International, Omni Hotels and Resorts, The Ritz-Carlton Hotel Company and Starwood Hotels and Resorts. Representative healthcare clients include Adventist Health System, Allegent Health, Banner Health, St. Luke’s Health System and Tenet Healthcare Corporation. Towne Park was founded in 1988 and is headquartered in Annapolis, MD (www.townepark.com).

“With strong historical growth and a talented and proven management team, Towne Park is a highly attractive investment for TA Associates,” said Michael Berk, a Managing Director at TA Associates who will join the company’s Board of Directors. “Towne Park is a true entrepreneurial success story, growing into the recognized leader in institutional outsourced parking. We will work closely with Towne Park to leverage their leadership position and further grow the business.”

TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968, TA has invested in over 430 companies globally and has raised more than $18 billion in capital. The firm has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).

“Towne Park offers customers a very compelling value proposition,” said Jeffrey Del Papa, a Principal at TA Associates who will also join the company’s Board of Directors. “In addition to a professional, data-driven partnership, the company enables businesses to increase service levels and profitability. Given the ongoing migration to outsourced services and a highly fragmented market, we anticipate continued organic and acquisitive growth for Towne Park.”

“We are very pleased to welcome TA Associates as an investor in Towne Park,” said Jerry South, Founder & CEO of Towne Park. “TA brings a wealth of experience, strategic guidance and contacts, and partnering with the firm is a natural next step in our evolution. With TA’s assistance, we will grow our existing client relationships and pursue additional opportunities, while continuing to meet the unique hospitality and service needs of each of our clients.”

Goodwin Procter provided legal counsel to TA Associates. Hogan Lovells served as legal counsel and Harris Williams & Co. served as financial advisor to Towne Park.

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-7-14

Blackstone’s Byron Wien Gazes into Crystal Ball

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Byron Wien, Vice Chairman, Blackstone Advisory Partners, has issued his list of Surprises for 2014. This is the 29th year Mr. Wien has given his views on a number of economic, financial market and political surprises for the coming year. A “surprise” event is defined as one which the average investor would only assign a one out of three chance of taking place but which Mr. Wien believes is “probable,” having a better than 50% likelihood of happening.

Mr. Wien started the tradition in 1986 when he was the Chief US Investment Strategist at Morgan Stanley. Mr. Wien joined Blackstone in September 2009 as a Senior Advisor to both the firm and its clients in analyzing economic, political, market and social trends.

The Ten Surprises of 2014 are as follows:
1. We experience a Dickensian market with the best of times and the worst of times. The worst comes first as geopolitical problems coupled with euphoric extremes lead to a sharp correction of more than 10%. The best then follows with a move to new highs as the Standard & Poor’s 500 approaches a 20% total return by year end.

2. The US economy finally breaks out of its doldrums. Growth exceeds 3% and the unemployment rate moves toward 6%. Fed tapering proves to be a non-event.

3. The strength of the U.S. economy relative to Europe and Japan allows the dollar to strengthen. It trades below $1.25 against the euro and buys 120 yen.

4. Shinzo Abe is the only world leader who understands that Dick Cheney was right when he said that deficits don’t matter. He continues his aggressive fiscal and monetary expansion and the Nikkei 225 rises to 18,000 early in the year, but the increase in the sales tax, the aging population and declining work force finally begin to take their toll and the market suffers a sharp (20%) correction in the second half.

5. China’s Third Plenum policies to rebalance the economy toward the consumer and away from a dependence on investment spending slow the growth rate to 6% in 2014. Chinese mainland traded equities have another disappointing year. The new leaders emphasize that their program is best for the country in the long run.

6. Emerging market investing continues to prove treacherous. Strong leadership and growth policies in Mexico and South Korea result in significant appreciation in their equities, but other emerging markets fail to follow their performance.

7. In spite of increased US production the price of West Texas Intermediate crude exceeds $110. Demand from developing economies continues to outweigh conservation and reduced consumption in the developed world.

8. The rising standard of living and the shift to more consumer-oriented economies in the emerging markets result in a reversal of the decline in agricultural commodity prices. Corn goes to $5.25 a bushel, wheat to $7.50 and soybeans to $16.00.

9. The strength in the US economy coupled with somewhat higher inflation causes the yield on the 10-year U.S. Treasury to rise to 4%. Short-term rates stay near zero, but the increase in intermediate-term yields has a negative impact on housing and a positive effect on the dollar.

10. The Affordable Care Act has a remarkable turnaround. The computer access problems are significantly diminished and younger people begin signing up. Obama’s approval rating rises and in the November elections the Democrats not only retain control of the Senate but even gain seats in the House.

Every year there are always a few Surprises that do not make the Ten either because Mr. Wien does not think they are as relevant as those on the basic list or he is not comfortable with the idea that they are “probable.”

Here are the Also Rans:
1. Through a combination of intelligence, extremism, celebrity and cunning Ted Cruz emerges as the clear front runner for the 2016 Republican presidential nomination. Chris Christie and the moderates fade in popularity as momentum builds for fiscal and social conservative policies.

2. In 2½ years the price of a Bitcoin has increased from $25 to $975. The supply of Bitcoins is fixed at 21 million with 11.5 million in circulation. Bitcoins lack gold’s position as a store of value over time. During the year Bitcoin’s acceptance collapses as investors realize that it cannot be used as collateral in financial transactions and its principal utility is for illegal business dealings where anonymity is important.

3. Overcoming objections from the Cuban exile community, President Obama opens discussions on initiating trade and diplomatic relations with Cuba. A reduction in sanctions is proposed, as well as limited financial support in the form of bonds, quickly dubbed as “Castro convertibles.”

4. Hillary Clinton decides not to run for President in 2016. She says her work with various Clinton non-for-profit initiatives is important and unfinished. Specifically, she explains that her health was not an issue in her decision. The Democratic race for the top seat becomes chaotic.

Blackstone is one of the world’s leading investment and advisory firms. The firm’s alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-focused funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Blackstone is based in New York (www.blackstone.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-7-14

Birch Equity Partners Launches in Atlanta

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Birch Equity Partners, a new private equity firm headquartered in Atlanta, has been launched by Holcombe Green, Jr., Vincent Oddo and Dr. R. Kirby Godsey. The new firm will invest in established expansion-stage businesses.

“Birch Equity Partners has been a vision of ours for some time and we are excited to finally get started,” said Vincent Oddo, Managing Partner. “Our success growing and operating Birch Communications over the past 18 years has enabled us to develop a unique set of assets and resources which we think will be very valuable to small and mid-sized expansion-stage businesses that are seeking capital as well as practical management expertise and a unique set of back-office capabilities.”

Birch Equity Partners makes minority and control investments of $1 million to $10 million in companies with $5 million to $50 million of revenue. Sectors of interest include business services, consumer services, education, telecom and broadband services, entertainment, internet and media, financial services, healthcare, information services, and technology. The firm is based in Atlanta (www.birchequity.com).

Holcombe Green is a co-founder of Birch Equity Partners and is Chairman of its Investment Committee. Mr. Green has over thirty years of experience investing in and growing public and private businesses. He founded private equity firm Green Capital Investors and served as the Chairman, Board Member and Chief Executive Officer of many of its portfolio companies. Mr. Green received his BA from Yale University and his JD from the University of Virginia.

Vincent Oddo, Managing Director, leads Birch Equity Partners investment activities and serves as a member of its Investment Committee. Mr. Odo has spent his entire 30-year career working with companies in the telecommunications and technology industries. He also serves as the President and Chief Executive Officer of Birch Communications, an IP-based communications and cloud services provider headquartered in Atlanta. He began his career at Graphic Scanning Corp., a BellSouth predecessor company. Mr. Odo received his BA and MPA in Management from Long Island University.

Dr. R. Kirby Godsey is a co-founder of Birch Equity Partners and participates as a member of its Investment Committee. Dr. Godsey also serves as Chairman of the Board of Birch Communications. Dr. Godsey served as the 17th president of Mercer University from 1979-2006. He earned his undergraduate degree in history and religion from Samford University in Birmingham, Alabama and he holds Master of Divinity and Doctor of Theology degrees from New Orleans Baptist Theological Seminary, and a Master of Arts in Philosophy from the University of Alabama. In 1969, he earned a Ph.D. in Philosophy from Tulane University.

“While there are many private equity firms available in today’s marketplace, Birch Equity Partners can offer more than just a capital investment,” said Mr. Oddo. “The real value that we offer is our depth of experience that comes from years of hands-on, successful M&A, back-office operations, call center operations, business modeling and communications expertise that we can offer businesses looking to reach the next level. No one else has what we can offer.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-7-14

Baird Names Steve Booth as New President

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Financial services firm Baird has promoted Steve Booth to President effective January 1, 2014. He is only the eighth President since the firm’s founding in 1919.

Mr. Booth takes on the new role of President in addition to his current responsibilities as Chief Operating Officer and co-head of Baird’s Equity Capital Markets (ECM) business. Mr. Booth became COO in 2013 as part of a plan that calls for him to succeed current Baird Chairman & Chief Executive Officer Paul Purcell and become CEO in January, 2016.

Steve Booth joined Baird in 1994 and first led the firm’s Investment Banking Industrials Group, then Baird’s Global M&A business before also becoming Director of Investment Banking and co-managing Equity Capital Markets. He was named COO in 2013. He is also a member of Baird’s board of directors and Executive Committee and chairs the firm’s Finance Committee. Prior to joining Baird, Mr. Booth was at Kidder, Peabody in its Chicago Corporate Finance Office. He received his Master of Management degree from Northwestern University and holds a BBA in Finance and a BA in Economics from Southern Methodist University.

“Steve Booth and I have a very strong relationship that goes back more than 20 years,” said Mr. Purcell. “I couldn’t be prouder of what our employee-owned firm has accomplished so far and I’m confident Steve can help take Baird even further.”

Baird is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. Established in 1919, Baird has more than 2,900 associates serving the needs of individual, corporate, institutional and municipal clients. Baird has more than $100 billion in client assets. Baird’s principal operating subsidiaries are Robert W. Baird & Co. in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird’s investment banking and private equity operations (www.rwbaird.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-7-14

DFW Closes Fund 4 Above Target

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DFW Capital Partners has held a final closing on DFW Capital Partners IV, LP with $162.5 million in capital commitments which exceeded the firm’s target of $150 million. Capital commitments were made by several new institutional investors, including domestic and European funds of funds, insurance companies, pension funds, wealth management groups and family offices.

“We are deeply grateful for the support of our existing fund investors, who increased their commitments to DFW IV significantly from the prior fund, and are excited to welcome many new limited partners as well,” said Keith Pennell, Managing Partner of DFW. “We are particularly fortunate to have closed the fund in a relatively quick fashion, and to have been oversubscribed – exceeding our original fundraising target of $150 million. We look forward to continuing to employ our disciplined investment strategy and building a strong portfolio of unique, service-oriented businesses.”

DFW Capital Partners invests in lower middle market companies. Sectors of interest include outsourced healthcare and business services, including clinical services, specialty distribution, automated dispensing and pharmacy technology. DFW is headquartered in Teaneck, NJ, and maintains an office in Chevy Chase, MD (www.dfwcapital.com).

To date, DFW’s fourth fund has invested in three companies: Information Innovators, a Springfield, VA based provider of enterprise technology and program management services to the government sector (www.iiinfo.com); Covenant Surgical Partners, a Nashville based operator of 19 gastroenterology and ophthalmology ambulatory surgical centers (www.covenantsurgicalpartners.com); and Sebela Pharmaceuticals, a specialty pharmaceutical company based in Alpharetta, GA (www.sebelapharma.com).

The Private Equity Services Group of Griffin Financial Group acted as the exclusive financial advisor and placement agent for DFW Capital Partners. Paul Delaney, Senior Managing Director, and W. Mitchell Fenimore, Senior Vice President, led the placement team for Griffin. The Private Equity Services Group advises private equity fund managers and institutional limited partners in the areas of fund placement, secondary advisory and co-investment financing (www.griffinfingroup.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-6-14

Former Senator Joe Lieberman Joins Victory Park

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Former US Senator Joseph Lieberman has joined Victory Park Capital as chairman of the firm’s Executive Board. Brendan Carroll, partner and co-founder of Victory Park, previously worked for Senator Lieberman during his 2000 vice presidential campaign and was a staff assistant in Mr. Lieberman’s office in the mid-1990s.

“I am honored to welcome Senator Lieberman,” said Mr. Carroll. “His wealth of experience will bring tremendous value and his appointment serves as a testament to the growth of our firm.”

The former Connecticut senator, who served four terms, was the Democratic candidate for US vice president in 2000. He spent 40 years in elected office, including 24 years in the United States Senate, helping shape public policy in nearly every sector, before retiring in January 2013. He chaired the Committee on Homeland Security and Government Affairs and served on the Environment and Public Works and Small Business Committees. Previously, he spent 10 years in the Connecticut State Senate, including three terms as majority leader and six years as Connecticut’s Attorney General.

“While in the US Senate, I fought for policies that would allow small businesses to thrive,” said Senator Lieberman. “I look forward to a long-term partnership with Victory Park Capital that will position the firm for continued growth.”

Victory Park Capital invests from$10 million to $50 million per transaction in small cap public companies and middle market private companies that typically generate less than $150 million in revenue and less than $30 million of EBITDA. The firm focuses on complex situations and seeks to build long term sustainable value in its companies. Victory Park is based in Chicago and has offices in Boston and San Francisco (www.victoryparkcapital.com).

“Senator Lieberman’s business acumen and deep policy background will be critical as we position for future growth,” said Richard Levy, VPC managing partner and founder. “In today’s heightened regulatory environment, his extensive legislative knowledge will help us navigate an increasingly complex marketplace.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-6-14

Avante Backs Inverness Graham Buy of Global ID

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Avante Mezzanine Partners has provided unitranche debt and an equity co-investment to support the acquisition of The Global ID Group by Inverness Graham Investments.

“Avante was an excellent partner for Global ID,” said Trey Sykes, Managing Principal of Inverness Graham. “We chose Avante due to their ability to provide a one-stop financing solution and the value they added during the due diligence process. We are thrilled to have them as our partner as we grow the business.”

Global ID is a family of companies dedicated to the production of safe, ethical, and sustainable food. Global ID companies include Genetic ID, a provider of laboratory testing services for genetically modified organisms with offices in the US and Germany; CERT ID, a food safety certification company with offices in the US, Brazil and the UK; and two consulting subsidiaries in the US and UK including Food Chain Global Advisors, the exclusive administrator of the Non-GMO Project, a non-profit organization committed to preserving and building the non-GMO food supply, educating consumers, and providing verified non-GMO choices. The Global ID Group is headquartered in Fairfield, IA (www.global-id-group.com).

“This is our third investment with the Inverness Graham team and we couldn’t ask for a better partner,” said Jeri Harman, Founder and Partner of Avante. “We were impressed with the knowledge and resources the Inverness Graham team brought during due diligence and we worked seamlessly with their team to understand the business quickly and deliver a flexible financing solution.”

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).

“We think Global ID has a bright future driven by increased food safety regulations and consumers’ desire to know what’s in their food,” said Ivelisse Simon, Principal of Avante. “We look forward to working with the Inverness Graham team and management as they grow the business.”

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).

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-6-14

Brynwood Acquires Joseph’s Pasta Company

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Brynwood Partners has acquired Joseph’s Pasta Company from Nestle Prepared Foods Company. Brynwood Partners has now completed five acquisitions from Nestle and this transaction marks the first buy for Brynwood’s seventh investment fund which closed in September 2013 with $400 million of committed capital.

Joseph’s Pasta Company is a manufacturer and marketer of frozen stuffed pasta for the foodservice segment. Products include stuffed cannelloni, stuffed ravioli, stuffed tortellini, gnocchi, and manicotti. The company operates a 150,000 square foot facility in Haverhill, MA (headquarters) and has approximately 300 employees (www.josephsgourmetpasta.com).

“We are pleased to announce the acquisition of Joseph’s from Nestle,” said Henk Hartong, Senior Managing Partner, Brynwood Partners. “Joseph’s manufactures delicious and unique products in its state-of-the-art manufacturing facility. We are excited about the opportunity to accelerate innovation and explore new distribution channels. We look forward to investing in the business and working with Joseph’s loyal and talented employees to grow and enhance the business.”

Brynwood has an established track record in the frozen food space. One of Brynwood Partners’ most successful investments was in Richelieu Foods, a private label manufacturer of frozen pizza and salad dressings. Richelieu Foods was a portfolio company of Brynwood Partners V and was sold in 2010 to Centerview Partners. “We had a great deal of success with Richelieu Foods in the frozen food space in both the retail and foodservice channels,” said Mr. Hartong. “We hope to be able to utilize some of that experience in the Joseph’s investment.”

Brynwood Partners is an operationally-focused private equity firm that makes control investments in consumer focused lower middle market companies. Brynwood Partners has $900 million of capital under management. The firm was founded in 1984 and is based in Greenwich, CT (www.brynwoodpartners.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-6-14

Bain Acquires Bob’s Discount Furniture

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Bob’s Discount Furniture, a retailer of furniture and bedding and a portfolio company of Karp Reilly, has signed an agreement to sell a majority stake in the company to Bain Capital. The management team will continue to own a significant stake in the company. The transaction is expected to close during the first quarter of 2014.

Bob’s Discount Furniture, acquired by Karp Reilly in 2004, sells home furnishings, including living room furniture, bedroom furniture, dining room furniture, mattresses/foundations and other home accents through 47 stores located throughout the Northeast and Mid-Atlantic states. The company is headquartered in Manchester, CT with distribution centers in Taftville, CT and Perryman, MD. The company completes over 15,000 deliveries per week through 9 delivery hubs and is ranked as the 16th-largest US furniture chain. Bob’s Discount Furniture was founded in 1991 (www.mybobs.com).

“We are excited to partner with Ted English and the great management team at Bob’s Discount Furniture to support continued growth in this dynamic business,” said Tricia Patrick, a Principal at Bain Capital. “We believe the company’s quality furniture at deep value fills an important need in the market today, and along with the authenticity of the Bob’s brand, should drive sustainable growth for years to come. We look forward to supporting the management team in executing their plan to grow and offer more customers the opportunity to shop at Bob’s Discount Furniture.”

Financing for the transaction is being provided by RBC and UBS. BofA Merrill Lynch is serving as financial advisor, and Ropes & Gray is acting as legal counsel, to Bob’s Discount Furniture. Kirkland & Ellis is serving as legal counsel, and PwC is serving as accounting advisor, to Bain Capital.

Bain Capital manages several pools of capital, including private equity, venture capital, and public equity and leveraged debt assets. The firm has more than $70 billion in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in more than 450 companies in a variety of industries around the world. The firm has offices in Boston, New York, Chicago, London, Munich, Tokyo, Shanghai, Hong Kong and Mumbai (www.baincapital.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-6-14

Peak Rock Acquires Natural American Foods

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Peak Rock Capital has acquired Natural American Foods, a producer and distributor of honey and other food products. Prior to its acquisition by Peak Rock, Natural American Foods (a newly formed company) merged with Groeb Farms which had just completed a Chapter 11 reorganization of its balance sheet.

Groeb Farms filed for Chapter 11 protection in October 2013 in the wake of one of the largest suspected honey scandals in history, and seven months after agreeing to pay $2 million in a deferred prosecution agreement with the federal government. A federal investigation revealed that two Groeb executives were allegedly aware the firm bought more than 1,500 container loads of honey that originated in China to avoid nearly $80 million in duties.

With the closing of the merger with Groeb Farms, Natural American Foods (NAF) is now one of the world’s largest honey producers, and has been producing honey under the Miller’s American brand for almost 120 years. The company sells its honey and commercial sweeteners to food manufacturers, food service companies, as well as national retailers and distributors. The new management team of Natural American Foods is led by its CEO, Rolf Richter, who joined the company in July 2012. He has more than 20 years of food brand experience and led the company through its sale to Peak Rock. Mr. Richter is joined by additional new members of management who have also joined the company since 2012 to head the new leadership team. NAF is headquartered in Onsted, MI (www.naturalamericanfoods.com).

“Natural American Foods has a strong competitive position as an established producer of high quality honey, with long-standing customer relationships with food manufacturers, food service providers and retailers,” said Robert Strauss, Managing Director of Peak Rock Capital. “We believe NAF is an excellent platform for expansion through organic growth and strategic add-on acquisitions and are excited to work with the company’s outstanding new management team in pursuing these opportunities.”

Peak Rock Capital makes debt and equity investments of $20 million to $150 million in middle market companies with revenues from $50 million to $1 billion and enterprise values from $25 million to $500 million. Sectors of interest include business and commercial services; consumer; distribution and logistics; energy and related services; healthcare; industrials; manufacturing, metals, and media. The firm is based in Austin, TX (www.peakrockcapital.com).

“Our acquisition of Natural American Foods is a great example of our interest in working alongside strong middle market businesses with talented management teams to help them achieve their full potential through operational enhancements and strategic repositioning. Our team worked side-by-side with NAF’s new management team throughout the recent restructuring process, and we are pleased to have helped guide the company so quickly to a successful emergence,” said Anthony DiSimone, CEO of Peak Rock Capital.

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-6-14

Bison Capital Partners Invests in United Therapies

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Bison Capital Partners has made an investment in United Therapies, a provider of urological services. The investment by Bison was used to acquire the equity interests of the company’s two founding physician partners, Drs. Donald Norris and Marc Rubenstein, who were the company’s largest shareholders.

United Therapies is a provider of urological services, technology and equipment, including lithotripsy – a proven, non-invasive procedure for the treatment of kidney stones. The company acquires, owns and operates lithotripter units, including fixed site and mobile lithotripter units, and provides lithotripsy related urological services. The company currently operates through four fixed site locations and 32 mobile lithotripters covering approximately 210 sites in the states of Colorado, Illinois, Iowa, Indiana, Maine, New Hampshire, New Mexico, New York, Pennsylvania, Texas, Virginia, Washington and Wisconsin. United Therapies was founded in 1986 and is based in Chicago (www.unitedtherapies.com).

“Bison Capital is very excited to be teaming up with CEO Bruce Cohen and his management team at United Therapies, as well as our over 300 physician partners who are also invested in the business. We believe that United Therapies represents an outstanding platform from which we can profitably grow the business, while ensuring that the company continues to provide the highest levels of service,” said Andreas Hildebrand, a Partner at Bison Capital.

Bison Capital makes equity investments in public and private middle-market companies that have revenues of $20 million to $500 million and EBITDAs greater than $5 million. The firm is industry agnostic however sectors where the firm has specific experience include business services, healthcare, industrial, transportation services, financial services, environmental services, energy, distribution and logistics. Bison Capital has closed four private equity funds totaling over $600 million since its inception in 2001 and currently has more than $350 million of capital under management. The firm is based in Santa Monica with an office in New York (www.bisoncapital.com).

“Since United Therapies’ founding 28 years ago, the company has established a proven track record of excellence and innovation in delivering high quality health services to our patients and physician and facility partners. As a result, we remain one of the premier lithotripsy companies in the country as evidenced by being the first company in the industry to be acquired by private equity,” said United Therapies CEO Bruce Cohen. “We believe that our partnership with Bison Capital, given its expertise in the market, substantial relationships and access to its capital, will enable the company to expand and take advantage of the many opportunities that exist and that we were unable to take advantage of previously.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-6-14