Archives for November 2015

GTCR Acquires Park Place Technologies

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GTCR has signed an agreement to acquire Park Place Technologies, a third-party provider of maintenance services for post-warranty data center equipment. The transaction is expected to close in the fourth quarter of 2015.

Park Place, a portfolio company of WestView Capital since November 2012, provides services to storage, server, and networking equipment made by EMC, Dell, IBM, Cisco, Hitachi, NetApp, HP, and Sun/Oracle. The company has more than 5,000 customers including small and medium sized businesses as well as some Fortune 500 companies. The company is led by CEO Ed Kenty. Park Place was founded in 1991 and is headquartered in Cleveland (www.parkplacetechnologies.com). Mr. Kenty and other members of the senior management team of Park Place are co-investors in the transaction with GTCR.

“The business that Ed and the entire Park Place team have built over the last decade is a testament to their superior customer service and operating excellence,” said GTCR Managing Director David Donnini. “The entire Park Place team has built a tremendous platform that is well-positioned for long-term success.” GTCR has indicated that it will commit additional equity capital as needed to fund future acquisitions and organic growth initiatives. Working with Mr. Donnini on this transaction for GTCR was Larry Fey, Principal.

“We are excited to partner with GTCR at this exciting time in Park Place’s evolution,” said Mr. Kenty. “GTCR brings significant resources and experience in building industry-leading companies, and I believe they will be a valuable resource in the long-term expansion of our business. I would like to thank WestView Capital for their support over the last three years.”

WestView Capital Partners invests from $10 million to $30 million of equity in lower middle market companies with EBITDAs between $3 million and $20 million.  Industries of interest include business and healthcare services; software and IT services; industrial and manufacturing; distribution and logistics; media and publishing; and consumer products and retail. The firm will invest both as a minority or majority investor.  WestView currently manages over $500 million of equity and is based in Boston (www.wvcapital.com).

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).

Lazard Middle Market was the financial advisor to Park Place and Latham & Watkins provided legal counsel. Kirkland & Ellis provided legal counsel to GTCR.

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-30-15

Irving Place and New Value Acquire Dynojet

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Irving Place Capital and New Value Capital have completed the acquisition of Dynojet Research, a manufacturer of aftermarket parts and accessories and diagnostic equipment used in the powersports industry.

Dynojet’s main products are dynamometers which are devices used to measure the force, torque, or power of an engine. Other products include flash tuners, electronic fuel injection monitors, and air/fuel ratio monitors. The company’s products are used in the powersports industry (motorcycles, snow mobiles, ATVs, boats and scooters) and are sold globally through a network of distributors and dealers. Dynojet was founded in 1972 and is led by CEO Robert Vlcek. The company is headquartered in Las Vegas with manufacturing facilities in Belgrade, MT (northwest of Bozeman) and a sales office and warehouse in the Netherlands (www.dynojet.com).

“Dynojet has a long and successful track record of developing innovative, performance-enhancing products that address the needs of enthusiast vehicle owners,” said Phil Carpenter, Co-Managing Partner of Irving Place Capital. “We are excited to be partnering with the management team and New Value Capital to continue to build Dynojet’s well-recognized brand and portfolio of market leading products.”

New Value Capital (NVC) invests in branded, enthusiast businesses that have revenues in excess of $5 million. Areas of specific interest include outdoor/survival/military tools and gear; performance cycling products and accessories; motorsports enthusiast products; emergency preparedness and response; and high-end, technical, mission critical apparel. The firm was founded by Adam Raper and Paul Lehman and is headquartered in Park City, UT (www.newvaluecapital.com).

“NVC is thrilled to partner with Dynojet and IPC, both firms with which I have enjoyed a long-standing relationship,” said Paul Lehman, a NVC partner. “Dynojet has tremendous potential and is attractively positioned as the market leader across its product categories. I look forward to working with Robert Vlcek and the rest of the Dynojet team to accelerate the company’s next phase of growth.”

Irving Place Capital invests in buyouts, recapitalizations and growth capital opportunities. The firm focuses on making control or entrepreneur-driven investments. Since its formation in 1997, Irving Place Capital has been an investor in 60 companies and manages over $4 billion, including its current $2.7 billion institutional fund. The firm is based in New York (www.irvingplacecapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-30-15

Peak Rock Acquires Berner Food & Beverage

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Peak Rock Capital has acquired Berner Food & Beverage, a maker of shelf-stable, dairy-based food products and beverages.

Berner is a private label and contract manufacturer of cheese dips, salsa con queso, alfredo sauce, aerosol cheese products and coffee- and latte-based beverages. Customers include consumer packaged goods companies and private label retailers. The company was founded in 1943 and is led by CEO Steve Kneubuehl. Berner is headquartered northwest of Rockford in Dakota, IL (www.bernerfoods.com).

“Our decision to invest in Berner was predicated on a number of highly attractive characteristics of the business, including its broad product offering, best-in-class manufacturing capabilities and leading blue-chip customer base,” said Robert Pistilli, Principal of Peak Rock Capital.

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 (www.peakrockcapital.com).

“Our acquisition of Berner highlights Peak Rock’s continued desire to invest in industry leading food businesses where we can leverage the extensive sector experience of our principals and an experienced management team to drive growth and operational improvements,” said Anthony DiSimone, Chief Executive Officer of Peak Rock Capital. “We continue to look for other attractive platform opportunities and add-on acquisitions that can drive meaningful value to our portfolio.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-30-15

Warburg Pincus Closes Latest Fund at $12 Billion

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Warburg Pincus has reached a final close of Warburg Pincus Private Equity XII, LP at the hard cap of $12 billion. Fundraising for the new fund began in May 2015.

Limited partners include public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations and wealthy individuals.  The fund received considerable participation from investors outside the United States, which according to Warburg Pincus, reflects the firm’s international investing model.

“We are pleased with the favorable reception to Warburg Pincus XII,” said Charles Kaye, Co-Chief Executive Officer. “Global growth investing, alignment of interests, proprietary deal sourcing, adding value to our portfolio companies – these are the elements that have long been central to the success of our business model and this fund’s oversubscription affirms our differentiated approach to private equity investing.”

Warburg invests globally in businesses at all stages of development with a focus on five industry sectors: energy; financial services; healthcare; consumer, industrial and business services; and technology, media and telecommunications.

“Our global network and deep domain expertise allow us to find and invest in unique companies across sectors and geographies,” said Joseph Landy, Co-Chief Executive Officer. “This new fund will enable us to continue what Warburg Pincus has done for almost fifty years: investing with entrepreneurs and management teams, starting and building businesses that will generate persistent returns for our investors.”

Warburg Pincus has more than $40 billion in assets under management and has now raised 15 private equity funds which have invested more than $50 billion in over 720 companies in 35 countries. The firm was founded in 1966 and is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mauritius, Mumbai, San Francisco, São Paulo and Shanghai (www.warburgpincus.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-30-15

ACAS Launches Strategic Review

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American Capital has hired Goldman Sachs & Co. and Credit Suisse Securities to assist the company in undertaking a strategic review of all corporate finance alternatives. The review will consider all alternatives for maximizing shareholder value, including a sale of the entire company or a sale of various business lines.

An independent committee of the American Capital board members – consisting of Neil Hahl, Kristen Manos, Kenneth Peterson and David Richards – will be responsible for overseeing the review process. The company expects to disclose the initial results of the review no later than January 31, 2016.

“The Strategic Review Committee looks forward to a full independent review with the sole goal of maximizing value for shareholders,” said Mr. Hahl, who chairs the committee. “The company’s previously announced plan to spin off to its shareholders a new business development company will also be evaluated as part of the review.

American Capital (NASDAQ: ACAS) is a publicly traded private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in lower and middle market private equity, leveraged finance, real estate and structured products.  Founded in 1986, American Capital has $80 billion in total assets under management and has eight offices in the US, Europe and Asia.  The firm is headquartered in Bethesda (www.AmericanCapital.com).

“We have generated a 16% annualized growth rate in both our book value and price per share over the five years ended September 30, 2015,” said Malon Wilkus, Chair and Chief Executive Officer of the Company.  “Nonetheless, we continue to trade at a meaningful discount to our book value, even as we progress with our plans for the spin off, which is intended to unlock shareholder value.  Therefore, I am fully supportive of this strategic review, which will allow us to realize the optimal value for our shareholders.”

American Capital has also revised and expanded its current stock buyback program, which began in the third quarter of 2015, by increasing it to a range of $600 million to $1 billion from the prior range of $300 million to $600 million.  The company expects to complete the upsized program by June 30, 2016.

“We consider our stock to be a terrific bargain,” added Mr. Wilkus.  “Having already purchased shares representing 34% of our shares outstanding when the program started, we intend to purchase additional significant amounts as long as we continue to trade at a significant discount to our book value.  During the course of our strategic review we will continue to be prudent managing our balance sheet and cost structure.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-30-15

Atlantic‐Pacific Guides Catalyst on Latest Fund

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Atlantic‐Pacific Capital was the placement agent for The Catalyst Capital Group on its latest fundraise, the Catalyst Fund Limited Partnership V, with just over $1.5 billion (C$2.0 billion) in capital commitments. The new fund closed above the targeted amount of $1.25 billion in October 2015.

Atlantic-Pacific Capital is one of the larger placement agents serving the alternative investment space. Since its founding in 1995, the firm has had more than 90 capital raising assignments totaling more than $60 billion for private equity, real estate, real assets, natural resources and infrastructure fund placements. Atlantic-Pacific has eight offices located in New York, Greenwich, Chicago, San Francisco, Nashville, San Clemente, London, and Hong Kong (www.apcap.com).

Brendan Edmonds and Alex Leykikh, both partners at Atlantic-Pacific Capital, led the fundraising team. “Catalyst’s sustainable competitive advantages in Canada and its history of generating superior risk-adjusted returns were well received by institutional investors globally,” said Mr. Edmonds.

“We are extremely pleased with Atlantic-Pacific’s professionalism and dedication to helping us efficiently achieve our capital raising goal,” said Gabriel de Alba, Managing Director and Partner of Catalyst.

Catalyst is Canada’s second-largest private equity firm (second to Onex) and specializes in control and influence investments in distressed and under-valued Canadian situations.  The firm was founded in 2002 and has now raised five funds (and two parallel funds) with over US$4.3 billion in capital commitments. Catalyst is headquartered in Toronto (www.catcapital.com).

“Fund V took less than six months of active marketing, was oversubscribed like all our prior funds and highlights the performance of the Catalyst team” said Newton Glassman, Managing Partner of Catalyst.  Since inception in 2002, Catalyst has generated strong returns with 92% of its capital deployed in senior secured debt and has not experienced a loss in principal since 2006.

Catalyst Closes Oversubscribed Fund V
https://oldsite.peprofessional.com/2015/10/catalyst-closes-oversubscribed-fund-v/

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-30-15