Archives for March 2, 2016

GI Partners Hires First Operating Pro

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GI Partners has added Achi Yaffe to its team as the firm’s first Operating Principal. Mr. Yaffe will provide support to the firm’s portfolio companies with the goal of value creation through operational improvements. Mr. Yaffe’s background includes experience with transaction execution, merger integration, 100-day planning, sales growth, and talent development.

“Achi is a strategy and operations leader with private equity, line operating, and consulting experience,” said Rick Magnuson, Founder and Executive Managing Director of GI Partners. “We continue to build our team to meet the needs of our firm moving forward, and the next step we needed to take was hiring our first Operating Principal.”

GI Partners invests from $50 million to $250 million in companies with enterprise values of $100 million to $750 million.  Sectors of interest include technology, media & telecommunications, healthcare, retail & leisure, and business & financial Services. The firm currently manages over $12 billion in capital commitments. GI Partners was founded in 2001 and is based in San Francisco (www.gipartners.com).

“I am thrilled to join the GI Partners team,” said Mr. Yaffe. “It is an exciting time for the firm.  I look forward to contributing to its momentum by helping strengthen our operational capabilities and partnering closely with our management teams to execute key initiatives that will build long-term value.”

Prior to joining GI Partners, Mr. Yaffe was a Principal for Lee Equity Partners helping portfolio companies develop business plans and execute strategies.  Prior to Lee Equity, he worked for McKinsey & Company advising management teams of Fortune 500 and private equity-backed companies. Mr. Yaffe received his BS from USC and his MBA from Harvard.

Mr. Yaffe joins GI’s team of 23 private equity investment professionals and will be based in San Francisco.

© 2016 PEPD • Private Equity’s Leading News Magazine • 3-2-16

Two New Managing Directors at H.I.G.

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H.I.G. Capital has promoted John Von Bargen and Todd Ofenloch to Managing Director in its US LBO group. Both were previously principals of the firm.

“Both John and Todd have proven to be exceptional investment professionals and instrumental to our growth. They have made strong contributions to our US LBO business for years, and we are confident in their success going forward,” said Doug Berman, Executive Managing Director of H.I.G.

Mr. Von Bargen has been a member of the Boston LBO team since joining the firm as an Associate in 2004. He has worked on a number of investments for H.I.G. including Insight Global, Accupac, nextSource, and most recently, Constructive Media.

Mr. Ofenloch has been a member of H.I.G.’s Boston LBO team since joining the firm from Parthenon Capital in 2009. He has been a lead member of transactions teams for Onyx Payments, ProPet, AERT, and Salary.com.  Mr. Ofenloch is also active with transaction sourcing.

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. has more than $19 billion of capital under management. The firm is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).

Since its founding in 1993, H.I.G. has invested in more than 200 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion.

© 2016 PEPD • Private Equity’s Leading News Magazine • 3-2-16

AE Industrial Acquires The Aircraft Group

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AE Materials Group, a portfolio company of AE Industrial Partners, has acquired The Aircraft Group, a provider of consulting services for the purchase, sale or leasing of commercial aircraft.

The Aircraft Group (TAG) provides its customers with the financial, technical and documentation requirements associated with buying, selling and leasing commercial aircraft. The company’s pitch line is “Every aircraft has a paper trail, only The Aircraft Group can handle it.” The company’s core services include engine inspections, technical analysis, aircraft import/export services, lease returns, certification, and economic evaluations. TAG was founded in 1990 by Walter Andrushenko and is headquartered in Phoenix (www.theaircraftgroup.com).

“Over the last 25 years, TAG has built a reputation advising owners of aircraft assets through the technical capability of its team,” said Jeff Lund, CEO, AE Materials Group (AEMG). “We are extremely excited to partner with Wally and the rest of the TAG team to expand our service capabilities to our customer base.” AEMG is an aerospace aftermarket company that provides new parts, surplus material, repair and overhaul, and other technical services to airlines, MROs and lessors.

“AEMG is a perfect fit for us, and will enable TAG to expand its services and increase its market presence,” said Mr. Andrushenko. “The timing is right for our company to move forward with AEMG, especially with the growing demand for our array of services from the global aircraft industry.”

AE Industrial Partners (AEI) invests in the aerospace, power generation and specialty industrial sectors with a specific focus on technical manufacturing, distribution and supply chain management, MRO (maintenance, repair and overhaul) and industrial service-based businesses.  Typical company targets will have from $50 million to $500 million of revenue. AEI is headquartered in Boca Raton (www.aeroequity.com).

Alvarez & Marsal (www.alvarezandmarsal.com) served as financial advisor to AEI and Buckingham, Doolittle & Burroughs (www.bdblaw.com) served as legal advisor.

© 2016 PEPD • Private Equity’s Leading News Magazine • 3-2-16

Eureka Completes Dividend Recap at West Academic

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Eureka Growth Capital has finished a dividend recapitalization of West Academic Publishing, a provider of learning materials for the law school market. West Academic was created in February 2013 by Eureka Growth to acquire the Thomson Reuters’ law school publishing business.

Today, West Academic Publishing provides legal textbooks, casebooks, study guides and other course-related materials in both print and digital media formats for law school faculty and students in the United States. West Academic Publishing provides its products under the West Academic, Foundation Press and Gilbert imprints. In the three years since being acquired by Eureka Growth, West Academic has grown from 50 to 82 employees largely through an expansion of digital products and other advanced learning materials. The company is headquartered in St. Paul (www.westacademic.com).

“Through this dividend recapitalization, we are pleased to provide a strong return to our investors and management partners as a byproduct of the effort to build on the company’s leadership position in value and innovation in the legal education market,” said Chris Hanssens, Managing Partner of Eureka.

Eureka Growth Capital makes control and non-control investments in companies with $10 million to $75 million in revenue. Initial equity investments range from $4 million to $10 million but larger investments can be made with co-investment from the firm’s limited partners. Eureka Growth prefers investment opportunities in the Mid-Atlantic and Eastern US. The firm was founded in 1999 and is based in Philadelphia (www.eurekagrowth.com).

“Eureka’s commitment to the long-term strategy and success of the business has helped us secure our market leadership position with the launch of innovative products such as CasebookPlus,” said Chris Parton, CEO of West Academic. “We are thrilled with our early success as an independent business and are very excited to continue to work with Eureka to expand our product and service leadership in the law school higher education market.”

© 2016 PEPD • Private Equity’s Leading News Magazine • 3-2-16

Searchlight Invests in 160over90

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Searchlight Capital Partners has acquired a majority equity interest in 160over90, a branding and creative services agency.

The 160over90 agency portfolio can be divided into three segments. In the consumer space, 160over90 counts Nike, Ferrari North America, and Under Armour among its clientele. In the world of professional sports, the agency represents the Washington Nationals, Philadelphia Eagles, and Arizona Coyotes. In higher education, the firm is the agency of record for UCLA, Texas A&M University, and the University of Florida.

160over90 was founded by CEO Shannon Slusher and COO Darryl Cilli and has approximately 150 employees in the company’s three locations: Philadelphia, PA; Newport Beach, CA; and Gainesville, FL (www.160over90.com).

To create shareholder value, Searchlight intends to increase the services provided by 160over90 and extend its geographic reach. The agency’s brand, locations, and management team will remain intact.

“Searchlight’s international presence, investment acumen, and financial support will accelerate 160over90’s expansion and global reach, build our integrated services, and allow us to continue to recruit the best and brightest branding talent,” said Mr. Slusher. “We are excited to have them as our partner.”

Searchlight Capital Partners invests equity and debt in companies active in the telecom; communications, information and information technology services; business and financial services; industrial goods; and consumer sectors. The firm was founded in 2010 by its partners Oliver Haarmann, Erol Uzumeri, and Eric Zinterhofer. Searchlight is headquartered in London with additional offices in New York and Toronto (www.searchlightcap.com).

“160over90 has built an impressive, diversified portfolio of nationally recognized brand leaders and distinguished itself as one of the most innovative branding agencies in North America. We are thrilled to partner with the 160over90 team, and see great potential for building a network around them,” said Mr. Zinterhofer.

160over90 is the only branding agency in Searchlight’s current stable of portfolio companies. Other investments include Hunter Boot, a British boot and footwear brand; Roots, a Canadian retailer of women’s, men’s, children’s, and baby’s apparel; Ocean Outdoor, a UK provider of large-format, digital, advertising locations; and TouchTunes, an in-venue music and entertainment platform.

© 2016 PEPD • Private Equity’s Leading News Magazine • 3-2-16