Abacus Finance was the Administrative Agent and Joint Lead Arranger for a group of senior secured credit facilities used to support the recent investment in R&D Altanova by Riverside Partners. Abacus also made an equity co-investment in R&D Altanova.
Abacus team members that worked on this transaction with Riverside included Sean McKeever, Eric Petersen, and Joe Lee. Abacus targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $30 million. The companies that Abacus finances generally have EBITDAs between $3 million and $15 million.
“This is a new relationship for us, and there has been a lot of enthusiasm here at Riverside to do a transaction with Abacus. Hopefully, this will lead to a lot more collaboration across our firms in the future,” said Riverside General Partner David Belluck. “Given the quality of work the Abacus team did on R&D Altanova, their speed and smoothness of execution, and just the general sense of good partnership we felt during the negotiations, I know I will highly recommend them.”
R&D Altanova is a designer and manufacturer of advanced printed circuit boards used to test integrated circuits used in computers, servers, mobile devices and other applications. Major industries served include the semiconductor, telecom, aerospace, defense, medical and radio device markets. R&D Circuits acquired Altanova in the fall of 2013 and changed its name to R&D Altanova. The company has four locations, with its headquarters and interface board manufacturing located near New York in South Plainfield, NJ; assembly and elastomer operations in Allentown, PA; signal integrity, design engineering , and sales services in San Jose, CA; and a regional repair and sales office in Hsinchu, Taiwan (www.rdaltanova.com).
Riverside Partners invests in middle market healthcare and technology-oriented companies that have revenues from $20 million to $200 million and EBITDA’s from $5 million to $25 million. Riverside Partners is currently investing its fifth fund, Riverside Partners Fund V, LP, with $561 million of capital commitments. The firm was founded in 1989 and is based in Boston (www.riversidepartners.com).
“In any new relationship, you hope to establish a good working rapport, and we were able to do that quickly with David, his colleagues and the R&D Altanova management team,” said Tim Clifford, President and CEO of Abacus Finance. “Our knowledge and experience in the technology sector, the assurance of a quick close and our flexibility were all important factors for Riverside – each a critical ingredient in what we call our Total Partnership Approach.”
Abacus was joined in the financing by MidCap Financial (www.midcapfinancial.com) and legal counsel was provided to Abacus by Goulston & Storrs (www.goulstonstorrs.com).
Abacus was formed in June 2011 and is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank, founded in 1850, the largest privately held bank in America with approximately $10 billion in assets. Abacus is based in New York (www.abacusfinance.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 4-13-15
