Archives for October 2015

Halyard Capital Exits Datamyx

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Datamyx, a portfolio company of Halyard Capital, has been sold to publicly-traded Deluxe Corporation for $160 million in cash. Deluxe funded the purchase of Datamyx through an expansion of an existing credit facility which now provides total financing capacity of $525 million.

“We are extremely pleased to have worked with the management team at Datamyx since 2011 to build one of the leading businesses focused on providing effective, risk-based marketing data and analytics to financial services marketers,” said Bruce Eatroff, Founding Partner of Halyard Capital.

Datamyx is a provider of information, technology and analytics to banks, credit unions, mortgage providers, alternative lenders, insurance companies and others.  Datamyx’s marketing products grow customer’s revenue through customer targeting, lead optimization, retention and cross-selling services. The company is based in Boca Raton (www.datamyx.com).

“Halyard Capital has been an outstanding financial and strategic partner to our company. We set upon a strategy four years ago to broaden our customer base and product set and this transaction is a validation that we are poised to build upon our success and leverage the significant relationships and resources that Deluxe can offer our business,” said Ben Waldshan, CEO of Datamyx.

Deluxe Corporation (NYSE: DLX) is one of the two largest check printers in the United States, and provides various personalized products and services to small businesses, financial institutions, and consumers. The company is headquartered north of Minneapolis in Shoreview, MN (www.deluxe.com).

“We believe the acquisition of Datamyx creates a tremendous strategic opportunity for us as we continue to grow our marketing solutions and other services product offerings,” said Lee Schram, CEO of Deluxe. “Datamyx’s expertise in transforming data into actionable marketing information provides valuable insight and helps customers grow their business. These added data analytics and modeling capabilities provide our Financial Services segment with another robust marketing offering for our customers.”

Halyard specializes in middle-market leveraged buyouts and growth equity investments in technology-enabled information, data analytics, communications and business services companies that cater to the healthcare, education, marketing services, human capital management and media sectors.  The firm has over $600 million of capital under management and is based in New York (www.halyard.com).

Datamyx and Halyard Capital were represented by investment bank Petsky Prunier (www.petskyprunier.com).  Deluxe was represented by investment bank Cherry Tree & Associates (www.cherrytree.com).

The sale of Datamyx represents the third monetization from Halyard Capital Fund II, following the sale of Engauge to Publicis in August 2013 and the partial monetization of OneSource Virtual HR to Technology Crossover Ventures in June 2015.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-20-15

Intrepid Advised Salon Grafix on Recent Sale

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Intrepid Investment Bankers was the lead financial advisor to Continental Fragrances, owner of the Salon Grafix hair styling brand, on its recent sale to High Ridge Brands, a portfolio company of Brynwood Partners.

Continental Fragrances has been marketing the Salon Grafix “white can” brand of premium, salon-quality hair styling products since 1998. Other brands include High Beams (temporary spray-on hair colors) and Healthy Hair Nutrition (natural hair care and styling).  Continental Fragrances sells through retailers in the food, drug, mass and beauty channels. The company is headquartered in the Detroit suburb of Auburn Hills (www.salongrafix.com).

“Salon Grafix is a leader in the premium hair styling category and has been a mainstay on retailer shelves for over 15 years,” said Steve Davis, Managing Director and Head of the Beauty & Personal Care practice at Intrepid. “The premium positioning of the Salon Grafix brand is a terrific complement to the High Ridge Brands’ portfolio.”

High Ridge Brands was formed by Brynwood Partners in January 2011 to purchase the North American Zest personal cleansing brand from Procter & Gamble and to serve as a platform for further acquisitions in the personal care consumer segment.  High Ridge Brands is led by James Daniels, President and CEO, and is headquartered in Stamford, CT (www.highridgebrands.com).

Intrepid Investment Bankers is a specialty investment bank that provides M&A, capital raising and strategic advisory services to middle-market companies across various industry sectors. Intrepid was formed in 2010 by a group of senior professionals from Barrington Associates, a middle-market mergers and acquisitions advisory firm that was acquired by Wells Fargo in 2006. Intrepid is headquartered in Los Angeles (www.intrepidib.com).

According to Intrepid, the firm is one of the most active mergers and acquisitions advisors in the beauty and personal care sector. “Beauty and personal care is a core sector for Intrepid and we are proud to have played a part in the sale of an iconic brand like Salon Grafix,” said Mr. Davis.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-20-15

CIT Backs Levine Leichtman’s Bertucci’s

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CIT Retail & Restaurant Finance was the Sole Lead Arranger in a senior secured credit facility to Bertucci’s Corporation, an owner and operator of Italian casual dining restaurants with locations from New England to Virginia. Bertucci’s is a portfolio company of Levine Leichtman Capital Partners.

“We’re pleased to provide this financing to Bertucci’s to help further their growth plans. This transaction highlights our deep experience in the restaurant sector and our ability to develop creative financing solutions for our middle market customers. We look forward to further building our relationship with Levine Leichtman,” said Chris Esposito, Managing Director, CIT Retail & Restaurant Finance.

CIT provides lending, leasing and other financial and advisory services to the small business and middle market sectors with a focus on specific industries, including: chemicals, commercial real estate, communications, energy, entertainment, gaming, healthcare, industrials, information services & technology, restaurants, retail, and sports & media (www.cit.com/corporatefinance). CIT is a bank holding company with more than $65 billion in assets. CIT was founded in 1908 and is based in New York (www.cit.com).

“This financing will help provide for ongoing capital needs of the company and facilitate Bertucci’s plans to extend its Bertucci’s kitchen reimage program,” said Lauren Leichtman, CEO of Levine Leichtman. “We’re pleased to once again call on CIT for its financing expertise and its deep knowledge of the restaurant sector.”

Bertucci’s was founded in 1981 and operates 88 locations in 10 states and the District of Columbia (www.Bertuccis.com). “We’re excited about our Bertucci’s kitchen reimage program. It emphasizes our iconic brick-oven experience and centers on promoting the open kitchen with theater-style cooking. We believe that watching your food being prepared is an integral part of the dining experience,” said Bill Freeman, CEO of Bertucci’s. “With the support of an experienced restaurant investor like Levine Leichtman and the financing acumen of CIT, we had the confidence this transaction would close quickly and smoothly.”

Levine Leichtman manages approximately $7 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is based in Los Angeles with offices in Chicago, Dallas, New York, London and The Hague (www.llcp.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-20-15

Sidley’s PE Practice Expands in New York

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Law firm Sidley Austin has added Geoffrey Levin to its New York team as a partner in its private equity practice. Mr. Levin will concentrates his practice on representing private equity sponsors and their portfolio companies, as well as strategic M&A and governance matters involving corporate clients.

“Geoff is a highly skilled M&A lawyer with extensive experience advising well-known private equity sponsors as they navigate the complexities of a range of transactions,” said Matthew Rizzo, co-leader of Sidley’s Private Equity practice. “We look forward to utilizing his deep industry knowledge and leadership to help strengthen our core capabilities and enhance our client offerings.”

Mr. Levin regularly represents private equity sponsors and their portfolio companies in structuring and negotiating business transactions. His clients come from a range of industries including life sciences, financial services, communications, retail, healthcare, insurance and energy. The business transactions he oversees are often in the multibillion dollar range and have included representation of a private equity firm in a $4.4 billion acquisition and a consortium of hedge funds in a bid for more than $6 billion in distressed real estate assets.

“I am excited to join the creative and energetic group of lawyers that make up Sidley’s private equity practice,” said Mr. Levin. “I look forward to drawing upon the full strength and scope of the firm’s capabilities, particularly in the life sciences and regulatory space, to help clients achieve their strategic and commercial objectives.”

Sidley Austin is the sixth-largest US-based corporate law firm with 1900 lawyers, annual revenues of more than $1 billion, and offices in 19 cities worldwide including New York, Chicago, Washington DC, and Los Angeles (www.sidley.com).

“Geoff brings a wealth of knowledge gained from years of handling significant private equity transactions, and strategic mergers and acquisitions. His arrival further illustrates our commitment to the continued growth of our private equity group and we are pleased to welcome him to Sidley,” said Michael Schmidtberger, managing partner of Sidley’s New York office.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-20-15

Riverside Acquires Drain Doctor

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The Dwyer Group, a franchising platform company of The Riverside Company, has acquired Drain Doctor, a franchisor of plumbing services in the UK.  Drain Doctor is the fourth add-on Dwyer and Riverside have completed this year.

Drain Doctor specializes in professional grade plumbing and drainage services to both the residential and commercial end-markets. The company operates through 42 franchisees and is headquartered north of London in Peterborough, UK.  Drain Doctor has held the UK master license to Dwyer’s Mr. Rooter brand since 1993 (www.draindoctor.co.uk).

The Dwyer Group, acquired by Riverside in August 2014, is now the owner of 13 service-based franchise organizations: Aire Serv, Glass Doctor, The Ground Guys, Mr. Appliance, Mr. Electric, Mr. Rooter, Portland Glass, Rainbow International, Five Star Painting, Molly Maid, Mr. Handyman, ProTect Painters, and Drain Doctor.  These brands collectively have more than 2,000 franchises in seven countries.  The Dwyer Group was founded in 1981 and is headquartered in Waco, TX (www.dwyergroup.com).

Riverside and Dwyer plan to drive growth at Drain Doctor by improving franchisee training, increasing marketing, and widening Drain Doctor’s footprint within the UK.   Drain Doctor will also benefit from Dwyer’s development and lead generation efforts.

“Dwyer has a long history with Drain Doctor and is eager to work even more closely with them,” said Riverside Principal Meranee Phing. “Drain Doctor and its team provide exceptional service across the UK, and this acquisition provides an excellent growth opportunity for both companies.”  Working with Ms. Phing on the transaction for Riverside were Partner Sarah Roth, Senior Associate Jason Fulton, Associate Chase Eckert and Operating Partner Tom Anderson.

Riverside Partner Anne Hayes worked on financing the transaction for this transaction.  Madison Capital, GE Capital, NXT Capital and Ares Capital have agreed to provide the debt needed to acquire Drain Doctor.

Riverside’s franchising investments are led by Industry Sector Head and Origination Principal Jeremy Holland. He is supported by franchising industry veteran and Senior Advisor Steve Siegel.

The Riverside Company invests in and acquires businesses valued at up to $300 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 400 transactions. The firm’s international portfolio includes more than 70 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-19-15

Wynnchurch Notches 4x on Sale of Wolverine

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Wynnchurch Capital has sold Wolverine Advanced Materials to publicly-traded ITT Corporation for approximately $300 million.  Wynnchurch – which acquired the company in December 2010 from EaglePicher – generated a return of 4 times its invested capital.

Wolverine Advanced Materials is a manufacturer of rubber-coated materials for use in industrial, electronics, and automotive applications including braking systems and harsh environment seals and gaskets. The company is based in Dearborn, MI (www.wamglobal.com).

“Wolverine represented an opportunity to reinvigorate a company with great DNA, differentiated products and leading market share,” said Terry Theodore, a Partner at Wynnchurch. “By recruiting fresh leadership and working with the management team to drive operational improvement, bolster the sales and go-to-market strategy, invest in engineering and product development and execute a strategic add-on acquisition, Wynnchurch and the management team were able to significantly grow Wolverine’s earnings and accelerate its topline growth.”

Wynnchurch Capital makes investments of $10 million to $90 million in middle-market companies that have revenues of $5 million to $500 million. Sectors of interest include niche manufacturing, business and industrial services, energy and power services, logistics, transportation and value-added distribution. The firm was founded in 1999 and is located in the Chicago suburb of Rosemont with additional offices in Detroit and Toronto (www.wynnchurch.com).

“Wolverine is a great business and we are proud of the growth and accomplishments that the management team, in close collaboration with Wynnchurch, were able to achieve during our ownership period,” said Brian Crumbaugh, a Managing Director at Wynnchurch.

Wynnchurch was advised by UBS Investment Bank (www.ubs.com) and Foley & Lardner (www.foley.com) served as the firm’s legal advisor.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-19-15

Morgenthaler Acquires Trachte

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Morgenthaler Private Equity has acquired Trachte, a manufacturer of preassembled and modularized control buildings.

Trachte’s buildings are used to house electrical components that control and protect electrical infrastructure, such as transmission and distribution substations.  In addition, Trachte buildings are used in industrial applications to house equipment such as relay and protection controls, switchgear, battery systems, servers, and data center hardware that control and protect electrical infrastructure and equipment. Trachte customers include utilities, OEMs, and other companies active in the power generation, energy, chemical processing, data center, and general industrial end markets. The company is headquartered south of Madison in Oregon, WI (www.trachteusa.com).

Morgenthaler Private Equity partnered in the transaction with the existing shareholders of Trachte including retiring President Randy Trachte and retiring VP of Sales Ron Trachte, as well as other members of the company’s senior management team.  Randy and Ron Trachte are third generation owners of the company which was founded in 1919 by George and Arthur Trachte.

Upon closing of the transaction, Matt Cahill will join the company as its new CEO.  Mr. Cahill is an experienced operating executive.  Paul Holmes, the current Vice President Manufacturing Operations and a 25-year Trachte employee, will become Vice President and Chief Operating Officer.

“Trachte has developed a tremendous reputation for product quality, engineering and project management support, on-time delivery, and customer service,” said Joe Machado, a Partner at Morgenthaler.  “We are excited to partner with Matt, Paul, and the rest of the Trachte organization as we help the company continue its growth.”

Alliance Partners (www.alliancepartners.com) provided senior debt financing to support the transaction. Hartford Investment Management Company (www.himco.com) and Siguler Guff (www.sigulerguff.com) provided subordinated debt financing.

“Our grandfather began manufacturing prefabricated metal buildings in 1919,” said Randy and Ron Trachte in a released statement. “Over our past 40 years of ownership with Trachte, we have had the privilege of working with our employees to build great relationships with customers and suppliers by delivering on our commitments.  We were very selective in choosing an investment partner for Trachte and believe Morgenthaler will be a great steward for the company and its legacy.”

Morgenthaler invests in companies in the lower middle market that have transaction values up to $150 million and EBITDAs between $5 million and $20 million.  Sectors of interest include high-value manufacturing and proprietary business services. The firm has $3 billion of capital under management and has offices in Cleveland and Boston (www.morgenthaler.com).

Milwaukee-based investment bank Cleary Gull (www.clearygull.com) was the financial advisor to Trachte.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-19-15

Fort Point Exits Engineering, Planning and Management

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Fort Point Capital has completed the sale of Engineering, Planning and Management, Inc. (EPM) to Onet North America, a subsidiary of Onet, an engineering and services company based in Marseille, France. Fort Point acquired EPM in July 2013.

EPM is a provider of engineering, consulting, probabilistic risk assessment, and fire protection services to the nuclear power industry and other commercial customers. The company was founded in 1980 and is headquartered west of Boston in Framingham, MA (www.epm-inc.com).

During its two plus years of ownership, Fort Point actively supported the company’s growth through the addition of senior staff including a chief financial officer and chief operating officer; developed and executed a plan to expand into adjacent end markets and new geographies; grew profitability and improved working capital management; and made investments in new software and services.

“EPM epitomizes our strategy of acquiring niche leaders and working with those management teams to significantly improve and transform their businesses from a qualitative and quantitative standpoint,” said Christina Pai, a Partner at Fort Point.

Fort Point Capital invests from $5 million to $25 million in service-oriented, lower middle-market companies across a range of sectors, including business services, healthcare, consumer, and software & information. Fort Point Capital is currently investing from FPC Small Cap Fund I. Since founding in 2010, Fort Point has completed nine transactions – five platform investments, two exits and two add-on acquisitions. The sale of EPM marks the second portfolio realization for Fort Point and first realization from FPC Small Cap Fund I.  The firm is based in Boston (www.fortpointcapital.com).

“With Fort Point’s support and encouragement, we leveraged our track record and market leadership position to introduce new software and service offerings, acquire new customers and expand into new markets and geographies,” said Robert Kalantari, CEO of EPM.

Houlihan Lokey (www.hl.com) served as financial advisor to EPM and Kirkland & Ellis (www.kirkland.com) provided legal counsel.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-19-15

O2 Invests in National Technologies

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O2 Investment Partners has made a significant investment in National Technologies in partnership with the company’s senior management team.

National Technologies (NTI) is a provider of specialized fiber optic technical services including fiber optic splicing, testing, connectivity and data center build-outs. The company was founded in 2009 by its CEO Brian James and is headquartered in the Chicago suburb of West Chicago with an additional office near Washington DC in Manassas, VA (www.national-technologies.com).

“I wanted to find a partner who would support my vision for this business and help me bring it to a national level, with a national footprint. The goal is to be able to service our customers 24/7 anywhere in the country. O2 understood this from day one and began working with me to put steps in place to accomplish this, even before we closed the deal,” said Mr. James.

Participating in this transaction with O2 is Brightwood Capital (www.brightwoodlp.com), The Private Bank (www.theprivatebank.com), and Alcentra Capital (www.alcentra.com). The Chicago office of Corporate Finance Associates (www.cfaw.com) introduced this investment to O2.

“We have great confidence in Brian James and his team and we’re looking forward to supporting his vision and bringing NTI’s capabilities to every major fiber optic market in the country,” said Luke Plumpton, a Vice President of O2.

O2 Investment Partners makes control investments in companies with EBITDAs from $2 million to $8 million located anywhere in the US and Canada but has a preference for the Midwest and the Great Lakes regions. The firm’s typical transaction size is $5 million to $50 million. Industries of interest include manufacturing, niche distribution, select service and technology businesses. O2 Investment Partners is based in the Detroit suburb of Bloomfield Hills (www.o2investment.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-16-15

GTCR Exits The Townsend Group

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GTCR has signed an agreement to sell The Townsend Group to NorthStar Asset Management Group, a real estate asset management firm. GTCR acquired Townsend in partnership with the company’s founder and CEO Terry Ahern in September 2011.

NorthStar Asset Management Group (NSAM) will acquire an 85% equity interest in Townsend for approximately $380 million, predominately from funds affiliated with GTCR.  Townsend’s management team will own the remainder of the business and will continue to direct day-to-day operations.

The Townsend Group is a provider of investment management and advisory services focused exclusively on real estate and real assets. Townsend provides services on behalf of regulatory assets under management of approximately $13 billion and provides advisory and consulting services to clients who have real estate allocations of approximately $170 billion.  The company was founded in 1983 and is headquartered in Cleveland with additional offices in San Francisco, London and Hong Kong (www.townsendgroup.com).

NorthStar Asset Management Group Inc. (NYSE: NSAM) is a global asset management firm focused on managing real estate and other investment platforms in the United States and internationally. The company is headquartered in New York (www.nsamgroup.com).

“We are extremely pleased with this strategic opportunity to expand and accelerate our asset management capabilities, both in the United States and internationally, with the acquisition of one of the world’s premier institutional real estate asset management platforms,” said David Hamamoto, Executive Chairman of NSAM.  “Townsend, which sits at the epicenter of the global real estate market, having significant influence over $170 billion of real estate, has a brand and franchise that is second to none.”

GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $11 billion in assets under management. Since its inception in 1980, GTCR has invested more than $12 billion in over 200 companies. The firm is based in Chicago (www.gtcr.com).

“We have great admiration for the Townsend team. We are pleased to have participated in the company’s growth and successes,” said GTCR Managing Director Collin Roche. “During our ownership term, Townsend enhanced its capabilities and product offerings and invested in the company’s people and technology to create a stronger value proposition for its clients.”

Morgan Stanley & Co. is the sole financial advisor to NSAM on this transaction and Morgan Stanley Senior Funding is the lead provider of a $500 million debt financing commitment to NSAM which will be used to fund the transaction and for general corporate purposes, including repurchases of its common stock.

 The acquisition of Townsend is expected to close in early 2016.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-16-15

Vance Adds-on With Buy of United Process Control

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Micronics Filtration, a portfolio company of Vance Street Capital, has acquired United Process Control.

United Process Control (UPC) is a provider of baghouse inspection, mechanical repair, bag change outs and aftermarket parts to customers in the power, steel, cement, chemical, and food industries largely in the eastern and southeastern portions of the United States. A baghouse is an air pollution-control device designed to filter dust and other fine particles from contaminated air in commercial and industrial facilities. UPC was founded in 1986 and is based north of Trenton in Hillsborough, NJ (unitedprocesscontrol.com).

“The addition of UPC significantly expands the depth and scope of our dry filtration system repair and maintenance capabilities, allowing us to better meet our aftermarket customers’ needs for engineered and technically complex mechanical repairs to their existing dry filtration systems,” said Micronics President and CEO Rick Weiler.

Micronics Filtration will integrate UPC with its C.P. Environmental (CPE) subsidiary which it acquired in March 2015. CPE provides filtration services and maintenance to the air filtration market, specifically the baghouse industry. The company is based near Chicago in Romeoville, IL (www.cp-environmental.com).

“With this transaction we also expand our footprint on the East Coast and into the southern portion of the United States. The combination of UPC and CPE underscores our commitment to dry filtration,” said Don Eldert, President of CPE.

Micronics Filtration, acquired by Vance Street in April 2013, is a provider of aftermarket and OEM filtration equipment and consumables for use in mining, chemical, wastewater and other industrial end markets. The company was founded in 1983 and is headquartered in Portsmouth, NH (www.micronicsinc.com).

Vance Street Capital makes control investments in companies with enterprise values up to $200 million. Sectors of interest include general industrial, aerospace & defense, and medical components and devices.  The firm is based in Los Angeles (www.vancestreetcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-16-15

Salt Creek Acquires King Tester

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Salt Creek Capital has acquired King Tester Corporation, a manufacturer and distributor of metallurgical testing equipment.

King Tester sells a full line of hardness testers, microscopes, scanning devices and supplies. The company is the leading supplier of portable Brinell hardness testers and microscopes worldwide.  King Tester was founded in 1955 and is based in King of Prussia, PA (www.kingtester.com).

Salt Creek Capital is a private equity firm focused on executive-led buyouts of profitable companies with up to $50 million in revenue.  Sectors of interest include business services, distribution, energy services, franchising, logistics and specialty finance. The firm is based in Menlo Park (www.saltcreekcap.com).

“We’re excited about the King Tester acquisition and about our partnership with Jim Knight, incoming-CEO of King Tester,” said Dan Phelps, Managing Director of Salt Creek Capital. “King has a long history of market leadership, and we look forward to working closely with Jim and the current management team to ensure a smooth transition to the company’s next phase of growth.”

Mr. Knight was a participant in Salt Creek Capital’s Executive Partnership Program which assists executives in identifying and acquiring small businesses.  He joined Salt Creek Capital as an Executive Partner in 2014 and is now the CEO of King Tester.

Before joining Salt Creek, Mr. Knight was the founder and CEO of Pelletco, a startup in the renewable energy sector.  Prior to Pelletco, he was the President and CEO of Knight-Celotex, a maker of fiberboards for the residential and commercial construction industry.  Earlier in his career, Mr. Knight held positions at several companies, including Chicago Metallic Corporation, SCA Consulting, The Boston Consulting Group, and Apple.  He has a BS in Finance from Boston University and an MBA from Dartmouth College.

“I am excited to partner with Salt Creek, a firm with a strong track record of investing in growing manufacturing companies, on this acquisition. I look forward to working with the team at King to continue serving our loyal customer base and further our mission of providing the most innovative products to our industry,” said Mr. Knight.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-16-15

Morgan Stanley AIP Closes Fund VI at $1 Billion

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Morgan Stanley Alternative Investment Partners (AIP) has held a final close of Private Markets Fund VI with $1 billion in capital commitments. This exceeded the fund’s $750 million target.

The new fund’s strategy is to combine investments in primary funds, co-investments and secondaries in one globally diversified portfolio of private equity investments including buyouts, venture, growth capital, and special situations.

“We are focused wholly on generating attractive returns for our investors” said Neil Harper, CIO, AIP Private Markets Team. “We are deeply resourced to search globally for the best opportunities across the private markets. We are looking for opportunities where managers have a clear and sustainable source of competitive advantage, and we seek to back such managers on a primary basis in addition to co-investing directly alongside them, and purchasing secondary interests in their funds.”

Morgan Stanley Alternative Investment Partners is part of Morgan Stanley Investment Management.  As of June 30, 2015, AIP managed total assets of $38.4 billion, including $10.7 billion in assets in private equity primary and secondary funds (www.morganstanleyaip.com).

“We are pleased with the success of this fund raise, particularly because we attracted several new limited partners to our program,” said John Wolak, Head of AIP Private Markets. “We believe that our experienced and talented team, strong investment results and deep commitment to our clients helped to attract capital to the fund.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-16-15

LFM Capital Adds New Business Development Pro

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LFM Capital, a private equity firm focused on growth-oriented, lower middle market manufacturing and industrial services businesses, has hired Jessica Ginsberg as Vice President of Business Development.  Ms. Ginsberg will be responsible for managing LFM’s business development and origination activities, including overseeing the firm’s direct sourcing platform and outreach to transaction intermediaries.

Ms. Ginsberg has over 11 years of experience in private equity, investment management and banking in a variety of roles that include business development, transaction diligence, credit analysis and investor communications.  Most recently, she was a Portfolio Management Officer in the middle market general industrials group at Bank of America Merrill Lynch.  Earlier in her career she held positions at Institutional Shareholder Services, Essex Investment Management, Pamlico Capital, and Banc of America Securities.  Ms. Ginsberg has a BBA in Accounting and Finance from Georgetown University.

LFM Capital is based in Nashville and invests in US-based manufacturing and industrial services companies that have revenues from $10 million to $100 million and enterprise values from $15 million to $75 million.  LFM was formed in May 2014 by Steve Cook, Executive Managing Director; Rick Reisner, Managing Director; and Dan Shockley, Managing Director. The firm closed its first fund, LFM Capital Partners, LP, with $110 million in capital commitments in October 2014 (www.lfmcapital.com).

“We are delighted that Jessica has joined the team at LFM.  Her strong business development skills and contacts in both private equity and banking will enhance LFM’s existing sourcing capabilities and efforts,” said Mr. Cook.  “Our goal is to generate ample, high-quality investment opportunities that meet LFM’s investment criteria through a multi-channel approach focused on outbound, direct marketing complemented by strong relationships with informal professional networks and transaction intermediaries.  Jessica’s dedicated attention and leadership in this arena will be a significant asset to LFM’s investment sourcing activities going-forward.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-16-15

Excellere Adds Two New Partners

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Excellere Partners has promoted Brad Cornell and Ryan Glaws to Partner.  Excellere is a Denver-based private equity firm specializing in partnering with entrepreneurs and management teams through recapitalizations and management buyouts.

“We are very proud of the team that we are building at Excellere Partners, and we are excited to be developing partners like Brad and Ryan within our organization,” said David Kessenich, Managing Partner and Co-Founder. “Since joining Excellere, both Brad and Ryan have demonstrated outstanding dedication, broad investment experience with superior results, and excellent leadership and values that are integral to our firm. We are pleased to announce their promotions to Partner and look forward to their continued success in their new position in the firm.”

Mr. Cornell joined Excellere in 2011 and has over 17 years of experience in private equity investing, mergers and acquisitions, and financing growth companies across a number of industries. Prior to joining Excellere, Mr. Cornell served as a Director at Lake Capital. He has an MBA in finance from Wharton and a BA in finance from James Madison University.

Ryan Glaws joined Excellere Partners in 2007 and has more than 13 years of private equity and leveraged finance experience working with growth companies.  Prior to joining Excellere, Mr. Glaws was Assistant Vice President in GE Capital’s Healthcare Leveraged Finance Group. He has a BA in finance from Miami of Ohio.

Excellere invests in middle-market companies with revenues ranging from $20 million to $150 million. Sectors of interest include energy products and services; healthcare; industrial technology and services; business services; and agri-business.  The firm has $1.4 billion of capital under management and is based in Denver (www.excellerepartners.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-15-15

Swander Pace Acquires Voortman Cookies

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Swander Pace Capital has acquired Voortman Cookies, a maker and marketer of cookies and wafers.

Voortman makes more than 60 varieties of cookies and wafers, including a line of sugar-free/no sugar added products. The company’s products are sold in supermarkets across Canada, the United States, Puerto Rico, and in 70 other countries worldwide. Voortman Cookies was founded in 1951 by its CEO and co-founder Harry Voortman and is headquartered south west of Toronto in Burlington, ON (www.voortman.com).

“For over 60 years, Voortman Cookies has remained one of the most well-known brands in Canada and has grown its footprint throughout North America and across the world,” said Andrew Richards, managing director at Swander Pace Capital. “We see a huge opportunity to help the company expand even further through increased investment in product innovation, distribution and marketing.”

Coinciding with the acquisition by Swander Pace Capital, Harry Voortman will transition his role as CEO to Douglas MacFarlane, a former senior executive at Clorox, Maple Leaf Foods, and Pillsbury. Mr. McFarlane has extensive experience growing food and consumer products brands.

“I want to thank Harry for the warm welcome and support that he has offered me as part of this transition,” said Mr. MacFarlane.  “I am excited to continue his longstanding tradition of quality products and market leadership.  It is an exciting time for Voortman Cookies, and I look forward to working with our incredible team and a seasoned strategic and financial partner to enhance our innovation and seize the opportunities in front of us.”

Swander Pace 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 $400 million in revenues.  The firm has raised over $1.3 billion of equity capital through five private equity funds and has led investments in more than 40 consumer products companies.  Swander Pace was founded in 1996 and has offices in San Francisco; Bedminster, NJ; and near Toronto in Oakville, ON (www.spcap.com).

“We couldn’t be more proud to partner with a company like Voortman and its incredible family legacy of great products and devoted customers,” said Heather Smith Thorne, a Director at Swander Pace Capital. “Harry Voortman has built a tremendous business with fantastic prospects, and we are excited to help the company in its next chapter of growth.”

Deloitte Corporate Finance Canada (www.investmentbanking.deloitte.com) served as the financial advisor to Voortman Cookies and McCarter Grespan (www.mgbwlaw.com) served as the company’s legal advisor.  Stikeman Elliott (www.stikeman.com) was the legal advisor to Swander Pace Capital.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-14-15

Swiftsure Capital Acquires Quantum Windows and Doors

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Swiftsure Capital and Nitze-Stagen Capital Partners have acquired Quantum Windows and Doors.  Quantum was sold to the investor group by Pendulum Investment which acquired the company in 2005.

Quantum Windows is a manufacturer of hand-crafted wood windows and doors with approximately 50% of the company’s products sold in the state of Washington.  However, the company is increasingly seeing new opportunities for product sales from across the country. Over the past 12 months the company has experienced a 40% increase in revenues.

Quantum was founded in 1982 in a barn by general contractors who were dissatisfied with mass produced windows available at the time. Today, the company has 62 employees and operates out of a 56,000-square-foot facility located north of Seattle in Everett, WA.  Quantum has product showrooms in Washington, California, British Columbia and Connecticut. The company is led by its President Melissa Benton who will remain with the company under the new ownership (www.quantumwindows.com).

As part of the acquisition, Jeff Klein has been appointed Chief Executive Officer of Quantum.  Mr. Klein, a senior executive in the window manufacturing industry, was previously Senior Vice President of Ply Gem Industries – a publicly traded maker of building products – and President of several window companies owned by Ply Gem. Prior to working with Ply Gem, he was Senior Vice President of Milgard Manufacturing which was sold by the Milgard family in 2001 to Masco.  James Milgard is currently an Advisory Partner with Swiftsure Capital. “Quantum is a national leader in custom wood window manufacturing,” said Mr. Klein. “They have set the standard for superb craftsmanship and are the go-to name for complex architectural projects that very few companies can execute.”

“There are a number of well-managed Northwest companies, like Quantum, that are seeking a change of ownership for generational transition issues or otherwise,” said Gordon Gardiner, Managing Partner of Swiftsure Capital.  “Swiftsure’s goal is to find those companies and help them realize their full growth potential. We’re happy to have led this deal for Quantum, and we look forward to seeing the company flourish.” Swiftsure Capital is a private equity and investment banking firm focused on opportunities in the Pacific Northwest. The firm was founded in 2004 by Scott Wilson and is headquartered in Seattle (www.swiftsurecapital.com).

Nitze-Stagen Capital Partners, Swiftsure’s partner on this transaction, invests in emerging companies based in the Pacific Northwest.  The firm was founded by Peter Nitze and is headquartered in Seattle (www.nitzestagencp.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-14-15

Guardian Capital Invests in Engineered Network Systems

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Guardian Capital Partners has made a significant investment in Engineered Network Systems (ENS).  Guardian partnered with the senior management team and current ownership group of ENS on this transaction.  The existing managers of ENS will continue operating the company under Guardian ownership.

ENS is a designer, manufacturer and supplier of commercial grade products for mounting, storing, charging and securing technology.  The company’s products include payment terminal mounts and stands, flat panel mounts, cabinets, carts and workstations. ENS’ products are marketed globally to the retail, grocery, financial, quick service restaurants, hospitality, medical and OEM markets. The company is led by its CEO Rick Soskin and is headquartered just south of Minneapolis in Burnsville, MN (www.ens-co.com).

“ENS has had solid historical growth because of its category leadership. With Guardian’s support and partnership with ENS, we are excited to further develop and accelerate the company’s growth strategy,” said Scott Evans, a Managing Partner of Guardian.

Guardian Capital Partners makes control investments in lower middle market private companies located primarily in the United States that have annual revenues between $20 million and $100 million.  Sectors of interest include consumer products, niche manufacturing and specialty business services. The firm is based in Wayne, PA, a suburb of Philadelphia.  Managing Partners Scott Evans and Peter Haabestad led the transaction for Guardian (www.Guardiancp.com).

“With hundreds of years of collective engineering prowess ENS is synonymous with innovation, customization, durability, quality and service. Our relationship with Guardian Capital Partners will be important to the continued growth of the company,” said CEO Rick Soskin.

Fifth Third Bank (www.53.com) provided debt financing for the transaction. The law firm of Drinker Biddle & Reath (www.drinkerbiddle.com) advised Guardian and Dinsmore & Shohl (www.dinsmore.com) was the legal advisor to ENS.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-14-15