Archives for September 27, 2016

FTV Closes Fund V

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FTV Capital has held a final closing of its oversubscribed fifth fund, FTV V, LP, at the hard cap of $850 million of limited partner commitments. The firm’s fourth fund closed in March 2014 with $700 million of commitments.

“We are pleased to announce the close of FTV V at our $850 million hard cap,” said Richard Garman, FTV Capital Managing Partner and head of the firm’s San Francisco office.  “We are grateful for the strong support from our existing investors, and we are excited about the opportunity to collaborate with some terrific new limited partners.  We have worked long and hard to build an outstanding team at FTV and an institutionalized model that enables us to deliver consistent returns for our limited partners.”

Fund V will continue the strategy of earlier funds by investing in companies that have $10 million to $100 million in revenue, are growing 20 percent plus annually, and are validated by blue chip enterprise customers and distribution partners. Sectors of particular interest include business services and technology, financial services, and payments and transaction processing.

“The growth equity asset class has distinct characteristics and a risk- return profile that is compelling during all phases of the economic cycle,” said Karen Derr Gilbert, FTV Capital partner in charge of business development and who led the firm’s fundraising efforts.  “The appeal of FTV’s growth strategy was underscored by both existing and new investors during our fundraising process. Our limited partner base is diverse across geography, size, and type, including public and corporate pensions, superannuation funds, insurance companies, family offices, and endowments.  We greatly appreciate our existing investors who helped us complete this fundraise very quickly, in support of our continued strong investment pipeline, and we welcome our new limited partners to FTV.”

Founded in 1998, FTV Capital has invested in 92 portfolio companies and has raised over $2.7 billion across five funds. Notable exits from FTV’s earlier funds include: CardConnect, merged with publicly traded FinTech Acquisition in 2016 (NASDAQ:CCN); MarketShare, acquired by Neustar in 2015; TrustWave, acquired by Singapore Telecom in 2015; Globant, exited through an IPO in 2014 (NYSE:GLOB); MedSynergies, acquired by Optum/UnitedHealthcare in 2014; and Mu Sigma, sold to shareholders 2012.

“Market inefficiencies, widespread growth in mobility and global ecommerce, heavy regulatory requirements, and massive demand for digitization are all driving opportunities for companies that are more effectively serving markets vacated by incumbents or that are enabling existing players to innovate more rapidly,” said Brad Bernstein, Managing Partner at FTV Capital and head of the firm’s New York office. “We view these long-term trends through the lens of the executives in our Global Partner Network. Our team proactively catalyzes investment opportunities with outstanding management teams who have successfully capitalized on these market dynamics and are looking for a financial sponsor offering deep domain expertise and access to our Global Partner Network to accelerate sales.”

Kirkland & Ellis advised FTV Capital on this fundraise. The Kirkland team was led by investment funds partners Bruce Ettelson and Karin Orsic; and included investment funds partner Matthew Dickman and associates Brian Delaney, Thien Nguyen, Emma Whenham and Courtney Chen; tax partner David Kung and associate Carol Wang; and ERISA partner Laura Bader and of counsel Elizabeth Dyer. Kirkland & Ellis is headquartered in Chicago (www.kirkland.com).

FTV Capital has offices in San Francisco and New York (www.ftvcapital.com).

© 2016 Private Equity Professional • 9-27-16

Linden Acquires The Orthodontic Store

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Young Innovations, a manufacturer and distributor of dental supplies and equipment, and a portfolio company of Linden Capital Partners since January 2013, has acquired The Orthodontic Store, a provider of orthodontic appliances, supplies and instruments.

The Orthodontic Store distributes its products to more than 6,000 orthodontists across the country. Products include arch wires, brackets and bonding supplies, cheek retractors, rubber bands, impression supplies, pliers, toothbrushes, wires, and springs. The company was founded in 1987 and is based near Washington DC in Gaithersburg, MD (www.orthodonticstore.com).

“This acquisition is an indication of our strong desire to grow in the orthodontics segment and other targeted categories through acquisitions,” said Dave Sproat, CEO of Young Innovations. “Our direct distribution businesses will continue to grow in specialty segments, complementing our strong positions in other channels and core categories, such as preventive and restorative accessories.”

Young Innovations develops, manufactures and markets supplies and equipment used by dentists, dental hygienists, dental assistants and consumers. The company’s consumables products includes disposable and metal prophy angles, prophy cups and brushes, dental micro-applicators, moisture control products, infection control products, dental handpieces (drills) and related components, endodontic systems, orthodontic toothbrushes, flavored examination gloves, children’s toothbrushes, and children’s toothpastes. In addition, the company offers a line of diagnostic products that includes panoramic X-ray machines and related supplies. The company is headquartered near Chicago in Algonquin, IL (www.ydnt.com).

Linden Capital Partners is focused exclusively on leveraged buyouts in the healthcare and life science industries. Linden’s strategy is based upon three elements: healthcare and life science industry specialization; integrated financial and operating expertise; and strategic relationships with large corporations. The firm is based in Chicago (www.lindenllc.com).

© 2016 Private Equity Professional • 9-27-16

Blue Point Adds On to Hilco Vision

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Hilco Vision, a portfolio company of Blue Point Capital Partners, has completed two add-on acquisitions – the third and fourth add-on acquisitions for the company – with the buys of Optiplus and Proteye. Hilco Vision has been a Blue Point portfolio company since May 2014.

Optiplus is a distributor of eyewear accessories, professional tools and lens-care in the Netherlands and is based northeast of Amsterdam in Leek (www.optiplus.nl).

Proteye is a designer, manufacturer and distributor of prescription industrial safety eyewear, sports frames and swimming goggles. The company is based southwest of Rotterdam in Middelburg (www.proteye.nl/en/).

“Joining forces with Optiplus and Proteye is central to our European growth strategy at Hilco Vision. This combination will expand our distribution throughout the Benelux region,” said Ross Brownlee, Chief Executive Officer of Hilco Vision.

In August 2015, Hilco Vision closed on its first two add-ons when it acquired Breitfeld & Schliekert (B&S) and Lexxoo International. B&S is a Germany-based distributor of optical and optometric tools, equipment, supplies and accessories. The company has approximately 30,000 SKUs that are sold to major optical chains, independent eye care offices and optical labs across Europe (www.b-s.de). Lexxoo is also based in Germany and supplies sunglasses, reading aids, contact lenses and related products to large retailers, including convenience and drug stores, throughout the country (www.lexxoo.com).

“Hilco Vision is a true international eye care solutions provider, strengthened by the acquisitions of Optiplus and Proteye.” said John LeMay, a Partner with Blue Point. “Following the 2015 acquisitions of Breitfeld & Schliekert and Lexxoo International, the addition of these market leaders will further reinforce Hilco’s position in Europe, as it continues to bring comprehensive solutions to its global customers.”

Today, Hilco Vision is a designer, manufacturer and distributor of eyewear and eye care accessories, supplies and equipment. The company supplies more than 30,000 SKUs to more than 35,000 domestic and international customers. The company is headquartered southwest of Boston in Plainville, MA, with additional operations in Canada, Europe and Australia (www.hilco.com).

Blue Point Capital Partners is a lower middle market private equity firm that invests in manufacturing, distribution and service businesses generating $20 million to $200 million in revenue. The firm has over $800 million in committed capital and has offices in Cleveland, Charlotte, Seattle, and Shanghai (www.bluepointcapital.com).

© 2016 Private Equity Professional • 9-27-16

Genstar Buys Verisae

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Accruent, a provider of real estate, facilities and asset management services and a portfolio company of Genstar Capital, has acquired Verisae, a provider of cloud-based services used by customers to connect their facilities with their maintenance and service functions through the Internet of Things. Verisae has been a portfolio company of Marlin Equity Partners since May 2012.

Verisae’s SaaS products are used to connect the facilities and assets of a company with the maintenance and service network used to manage asset and equipment maintenance, energy usage, and environmental sustainability. Customers of Verisae typically operate in the utilities, telecommunications, retail, manufacturing and service management industries. The company is headquartered in Minneapolis (www.verisae.com)

Accruent provides market planning, site selection, project management, lease administration, facilities and space management software that is purpose-built for specific industries. Accruent’s services are used in more than 5,800 organizations worldwide, including 40 of the top 100 retailers, 25 percent of the Fortune 500, 40 percent of leading universities, all 4 of the top US wireless carriers, and 55 percent of US hospitals. The company was founded in 1995 and is headquartered in Austin, TX (www.accruent.com). Genstar acquired Accruent from TA Associates in May 2016.

According to Accruent, managing the real estate and facilities lifecycle is second only to people as the largest expense item in enterprises today, and the cumulative annual spend is over one trillion dollars globally. For more than 20 years, the software to serve this market has been a collection of fragmented point solutions. Bringing together the ability to plan and execute, and proactively manage daily operations of real estate and facilities is revolutionary for the industry.

“With the addition of Verisae, Accruent is uniquely equipped to deliver game-changing customer value,” said John Borgerding, CEO, Accruent. “We can now help customers manage their complete facilities lifecycle from strategy to execution by connecting real estate and facilities to assets and service teams through the Internet of Things. The next-generation capabilities we are providing to customers drive step-function performance gains and enable them to deliver a transformative customer experience.”

“Our goal has always been to connect our asset management solutions with software that manages the real estate and facilities lifecycle,” said Jerry Dolinsky, CEO, Verisae. “By joining forces with Accruent, we will offer unprecedented scope – everything from long-term strategy and planning that spans years or even decades, through the real estate lifecycle including lease administration and construction project management, and through facilities management, field service and the real-time world of equipment monitoring and control.”

Genstar, which had a final close in August 2015 of its seventh fund with $2 billion in commitments, invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million.  Genstar targets investments in the financial services, software, industrial technology, and healthcare industries.  The firm was founded in 1988 and is based in San Francisco (www.gencap.com).

Marlin Equity Partners, the seller of Verisae, invests in businesses that have revenues of $20 million to $1 billion and are in the process of undergoing varying degrees of operational, financial or market-driven change. Sectors of interest include technology, healthcare, consumer products and services, business services, manufacturing, aerospace & defense, distribution & logistics, and media. The firm has $3 billion of capital under management and is headquartered in Los Angeles with an additional office in London (www.marlinequity.com).

© 2016 Private Equity Professional • 9-27-16

Vista Acquires GovDelivery

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Vista Equity Partners has signed an agreement to acquire GovDelivery, a cloud-based digital communication platform for government, from Actua Corp. which acquired GovDelivery in 2009. The transaction is expected to close in the fourth quarter of 2016.

GovDelivery is a digital marketing platform used by public sector organizations to promote usage of services, enhance public awareness, and increase the contributions and involvement of citizens. The company’s products are used by more than 1,800 organizations to reach over 120 million citizens. GovDelivery was founded by its CEO Scott Burns in 2000 and is headquartered in St. Paul (www.govdelivery.com).

GovDelivery launched major product upgrades in 2016 to support advanced digital marketing, FedRAMP (Federal Risk and Authorization Management Program) security compliance, and learning-enabled content. The company also added interactive text capabilities and an open source data management and open data platform through acquisitions. Over half of GovDelivery’s workforce has joined the company since January 2015.

“What sets GovDelivery apart is its success helping governments reach more people through its platform,” said Patrick Severson, board member and Principal at Vista Equity Partners. “We see effective communications as an increasingly strategic function and were impressed by the extraordinary value and unrivaled security that GovDelivery brings to its clients in this fast growing area.”

Vista Equity Partners makes equity investments in software, data and technology-enabled companies. The firm was founded in 2000 and has over 50 investment professionals operating out of San Francisco, Chicago and Austin (www.vistaequitypartners.com).

“Vista is a world class partner for our next phase of growth,” said Mr. Burns. “This $153 million investment validates our strategy and is the largest single investment in a cloud-based government technology company to date.”

Actua (NASDAQ:ACTA), the seller of GovDelivery, is a multi-vertical cloud computing company. Actua, based near Philadelphia in Radnor, PA, was formerly known as ICG Group and changed its name to Actua in September 2014 (www.actua.com).

Stephens (www.stephens.com) served as the financial advisor to GovDelivery on the transaction.

© 2016 Private Equity Professional • 9-27-16