Archives for October 2015

Morgan Stanley AIP Closes Fund VI at $1 Billion

by

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

by

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

by

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

by

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

by

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

by

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