Archives for October 2016

Gridiron Closes Third Fund at Hard Cap

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Gridiron Capital has held a final closing of the firm’s third fund, Gridiron Capital Fund III, LP, at the hard cap of $850 million. Gridiron’s earlier fund, appropriately named Gridiron Capital Fund II, LP, closed with $425 million of capital commitments in August 2012.

Investors in Fund III include a cross section of limited partners, including endowments and foundations, insurance companies, public and private pension funds, fund of funds and high net worth individuals, from North America, Europe, and Asia.

The investment strategy for Fund III will continue the strategy the firm has used since its founding in January 2005: investing in niche manufacturing, service and specialty consumer companies that have EBITDAs from $8 million to $50 million, EBITDA margins of at least 10%, and that are located in the United States and Canada.

“We are excited about the broad and significant support from both our investors in prior funds and new investors coming into Fund III,” said Tom Burger, a co-founder and Managing Partner of the firm. “We are fortunate to have such a high quality group of limited partners and great people to be partners with. We are humbled by the trust they’ve placed in us and we will work diligently and intensely every day to continue to earn their trust and deliver the best returns possible for each of them.”

Gridiron, which is based in New Canaan, CT, raised its first fund in 2007 with $300 million of capital commitments (www.gridironcapital.com).

Partners Debra Lussier and Paul Van Houten of Ropes & Gray (www.ropesgray.com) were the legal advisors to Gridiron on this fundraise.

© 2016 Private Equity Professional • 10-28-16

Serent Capital Invests in Apex Payroll Software

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Serent Capital has made an investment in Apex Payroll Software, a provider of software that is used by payroll service bureaus to serve the human resources needs of small and medium sized businesses.

Apex’s suite of products and services allows service bureaus to process payroll, ensure tax compliance, provide workforce management, and manage human resources functions on behalf of their clients. Over 220 payroll service firms nationally use Apex’s software. The company is based north of Atlanta in Roswell, GA (www.apexpayroll.com).

Serent will be partnering with founders Stephen Gregg, Cathy Gregg, and Marty Hamby in the next stage of Apex’s growth. “Apex weighed the decision to partner with Serent very carefully and placed a high degree of importance on finding a firm that shared our values,” said Stephen Gregg, Founder and CEO of Apex. “We were impressed with Serent’s knowledge of our industry, and their experience working with fast-growing software businesses to help them thrive and scale. With Serent’s partnership, we will be able to invest more into our product and services so that we can provide an even better customer experience.”

“Investing in human resource technology providers continues to be a focus area for us, and we are thrilled that Steve and his team selected Serent as Apex’s strategic capital partner,” said Kevin Frick, Partner and Co-Founder at Serent Capital. “Apex has built a great business, with a strong and loyal customer base. We are excited about the opportunity to work with the executive team to build on the remarkable success that they have had, with the goal of providing an ever-better experience to our existing and future customers.”

Serent’s investment in Apex represents its fifth investment in the human resources technology space in the last two years; Avionté (2014), ICon Professional Services (2015), Synergy Services (2015, combined with ICon to form TalentWave), and Humanis (2016, combined with Avionte).

Serent Capital invests from $10 million to $50 million in service businesses with revenues of $10 million to $100 million and EBITDAs up to $15 million.  Transaction types include buyouts, recapitalizations and growth capital. The firm is based in San Francisco (www.serentcapital.com).

© 2016 Private Equity Professional • 10-28-16

Linden Promotes Two

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Linden Capital Partners has promoted Michael Farah to Partner and Kam Shah to Principal. The firm has also hired Michael Bernard and Max Gaby as new Vice Presidents.

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

“Our team has prevailed in partnering with premier businesses by following our disciplined approach of focusing on key healthcare sectors and integrating the expertise of operating executives and investment professionals,” said Linden President and Managing Partner Tony Davis. “On behalf of the partnership, we are thrilled to recognize the performance of the team and welcome our newest teammates as we successfully execute the Linden strategy.”

Mr. Farah, who joined Linden in 2014, has been active on the pharmaceutical services and contract manufacturing sector teams, which led to investments in Flexan Corporation and ProPharma Group. He started his career in the healthcare investment banking group at UBS, spent three years as a private equity associate with Summit Partners, followed by six years at Metalmark Capital focused on healthcare investing. Mr. Farah has a BS in Business Administration from Carnegie Mellon and an MBA from Harvard.

Mr. Shah joined Linden in 2009 as an associate and returned as a vice president in 2013 after completing business school. Prior to Linden, he was a private equity associate at Sun Capital Partners. He began his career as an investment banking analyst at Goldman Sachs, where he focused on M&A advisory, capital raising, and leveraged buyout transactions. Mr. Shah has a BS in Finance from the University of Illinois and an MBA from Stanford.

Mr. Bernard has been involved in principal investing and investment banking since 2007. He joins Linden from 3i Group where he spent the last two years focused on healthcare investing. He started his career at Morgan Stanley in the leveraged loan investment group before joining the healthcare investment banking group. Mr. Bernard has a BA in Economics from Brown University and an MBA in Health Enterprise Management from Northwestern University.

Mr. Gaby has been involved in principal investing and investment banking since 2010. Prior to Linden, Mr. Gaby served as a private equity associate with GTCR and began his career as an investment banking analyst at Bank of America Merrill Lynch. Mr. Gaby has a BS in Finance and International Studies from Georgetown University and an MBA from The University of Chicago.

This has been a very busy year for Linden. In 2016, the firm has closed on three platform investments, three portfolio add-on acquisitions, sold Corpak MedSystems to Halyard Health, and completed dividend recapitalizations at Young Innovations and Spear Education.

Linden Capital Partners is based in Chicago (www.lindenllc.com).

© 2016 Private Equity Professional • 10-28-16

TorQuest Partners Invests in McKeil Marine

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TorQuest Partners has made an investment in McKeil Marine, a Canadian provider of marine transportation and project services.

McKeil provides its transportation and project services to a range of customers and industry sectors across the Great Lakes, St. Lawrence Seaway, East Coast and the Canadian Arctic. The company is based near Toronto in Hamilton, ON (www.mckeil.com).

At closing of the transaction, Steve Fletcher, President, who has been with McKeil for 17 years, has been appointed President and Chief Executive Officer and Blair McKeil, previously Chief Executive Officer and Chairman, has assumed the role of Vice Chairman.

“This milestone event is a testament to our skilled and dedicated crew, our valued customers, service providers and industry partners,” said Mr. McKeil. “Enhancing our ability to sustain and accelerate our growth is a fantastic way to celebrate the company’s 60th anniversary. I am excited to remain an owner of the business and look forward to helping guide McKeil as it navigates its way to a stronger, better future. I believe the best is yet to come.”

“This is the eighth platform investment for TorQuest Partners Fund III and continues our strategy of partnering with exceptional management teams to build industry-leading businesses, while supporting their continued growth,” said Brent Belzberg, Senior Managing Partner at TorQuest.

“McKeil has earned a long-standing reputation as an entrepreneurial business, a skilled and safe operator and a reliable business partner for its customers” said Michael Hollend, a Partner at TorQuest. TorQuest looks forward to supporting McKeil’s growth initiatives as its people continue to do what they do best – operate a preeminent Canadian marine service provider.”

TorQuest was founded in 2002 and has over $2 billion of equity capital under management. In July 2016 the firm held an above target final closing of TorQuest Partners Fund IV at the fund’s hard cap of $925 million. The initial targeted amount was $750 million. TorQuest is headquartered in Toronto (www.torquest.com).

© 2016 Private Equity Professional • 10-28-16

Taylor Fish Joins Tonka Bay

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Tonka Bay Equity Partners has hired Taylor Fish as a new Associate.  Mr. Fish will assist in the execution of the firm’s investment and management activities.

“Tonka Bay’s reputation and consistent success are a testament to the great people and strong culture the firm has developed,” said Mr. Fish. “I’m excited to join the investment team and look forward to continuing to grow the platform over the years to come.”

Prior to joining Tonka Bay, Mr. Fish was with investment bank Greene Holcomb Fisher. During his time there he advised clients on various sell-side and buy-side M&A transactions, capital raises and financial and strategic advisories.  Mr. Fish has experience in the industrial, energy, healthcare, technology and consumer sectors.  He began his career within the audit practice at Deloitte & Touche.

Tonka Bay invests in manufacturing, value-added distribution and business services companies that have EBITDAs greater than $2 million. The firm is based in the Minneapolis suburb of Minnetonka (www.tonkabayequity.com).

“Taylor’s experience in investment banking and public accounting will make him a valuable contributor to the firm” said Steve Soderling, a Partner at Tonka Bay. “We are excited to have Taylor join the Tonka Bay team.”

Mr. Fish has a BA in Public Accounting from the Gustavus Adolphus College.  He is also a Certified Public Accountant.

© 2016 Private Equity Professional • 10-28-16

Ironwood Invests in SAFE Security

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Ironwood Capital has made an investment in SAFE Security, a provider of alarm monitoring services. OFS Capital Corporation was a co-investor in this transaction alongside Ironwood Capital.

SAFE provides alarm monitoring and related services to over 100,000 customers in all 50 states, Puerto Rico and Canada. The company – led by Chief Executive Officer Paul Sargenti – was founded in 1988 and is headquartered near San Francisco in San Ramon, CA (www.safesecurity.com). The company consistently ranks among the top 25 largest security alarm companies in the United States.

“Our extensive experience in the security alarm industry, combined with the quality of management, makes SAFE a good fit for us,” said Carolyn Galiette, President and Chief Investment Officer at Ironwood Capital.

Ironwood Capital provides non-control growth capital to middle market companies. Investments take the form of subordinated debt and preferred stock in amounts ranging from $5 million to $20 million to support business owners and financial sponsors in growth financings, full and partial recapitalizations, generational transitions and buyouts. Ironwood Capital has more than 20 professionals and is headquartered in Avon, CT (www.ironwoodcap.com).

“SAFE’s established customer base, organic growth engine, growing dealer program and strong relationships with independent dealers is impressive. We like the team, we like their growth plan and we like the business trajectory,” said Roger Roche, Ironwood Capital Senior Managing Director.

OFS Capital (NASDAQ: OFS) is a business development company that invests from $3 million to $20 million of debt and minority equity in middle-market companies that have EBITDA of at least $3 million. Sectors of interest includes transportation & logistics; value-added distribution; business services; industrial & niche manufacturing; specialty chemicals; health care services; consumer products & services; aerospace & defense; franchising; and food & beverage. OFS has offices in Chicago, Los Angeles and New York (www.ofscapital.com).

Peter Flynn of specialty consulting firm SPP Advisors (www.sppadvisors.com) represented SAFE in the transaction.

© 2016 Private Equity Professional • 10-28-16

TCF Capital Funding Expands Team

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TCF Capital Funding has hired Mason Valadez as Senior Associate and LeeAnn Racevice as a Collateral Analyst.

“By bringing on high quality hires like Mason and LeeAnn and expanding our TCF Capital Funding team, we are further prepared to meet the growing needs of our expanding national client base.  We are thrilled that they elected to join us,” said Joe Gaffigan, TCF Capital Funding’s President.

Mr. Valadez will be involved in all aspects of screening, due diligence, underwriting and monitoring of leveraged loans to support lower middle market private equity and entrepreneur–owned buyouts, recaps and refinancings. Prior to joining TCF, he was an Associate at The Private Bank and prior to that a Credit Analyst at First Bank & Trust.  Mr. Valadez received his BBA in Finance, Investment and Banking from the University of Wisconsin.

Ms. Racevice joins the operations team as a Collateral Analyst and will act as a liaison between the customer and relationship managers to provide monitoring and operational support related to collateral, loan advances and pay downs, deposit accounts, covenant tracking and loan closing and funding.  Prior to joining TCF, she was a Credit Administrator with GE Capital and prior to that held positions with CIT Business Credit and Freemont Financial.

TCF provides cash flow and asset-based lending to lower middle-market businesses.  National in scope, this senior leveraged lending group focuses on providing private equity sponsor-backed cash flow loans and asset-based loans to companies with less than $100 million in revenue and between $2 million and $10 million in EBITDA.  The firm is based just outside of Chicago in Burr Ridge, IL (www.tcfcapitalfunding.com).

© 2016 Private Equity Professional • 10-28-16

CenterOak Keeps Adding to Team

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CenterOak Partners, a Dallas-based middle market private equity firm, has hired three new professionals. Joining the firm are Ben Adams, Vice President; Carrie Calhoun, Senior Associate of Business Development and Investor Relations; and Josh Weaver, Associate.

“Ben, Carrie and Josh each bring valuable experience and an impressive track record, whether working in an investment capacity, business development, investor relations or developing expertise in a particular industry or sector,” said CenterOak Managing Partner Randall Fojtasek. “We’re looking forward to working with them and believe they will each make a considerable contribution to our team.”

With these three hires, the staff at CenterOak now totals 22 individuals, including 13 members of the investment team and three operating partners. CenterOak was launched in September 2014 by Mr. Fojtasek, former Co-Founder and Co-Chief Executive Officer of Brazos Private Equity Partners.  He leads the firm alongside former Brazos senior executives Michael Salim, Lucas Cutler, Jason Sutherland and William Henry.

Mr. Adams and Mr. Weaver will be active in supporting the firm’s investment and monitoring activities. Prior to joining CenterOak, Mr. Adams held positions at Intuit, Lindsay Goldberg, TPG Capital, and Morgan Stanley. Mr. Weaver served as an Analyst at Wells Fargo Securities. Ms. Calhoun will support the firm’s investment sourcing activities and relationships with its limited partners. Prior to joining CenterOak, Ms. Calhoun held positions at NGP Energy Capital Management and Credit Suisse.

CenterOak makes equity investments of $20 million to $90 million in companies with enterprise values of $50 million to $200 million. Sectors of interest include: distribution; outsourced industrial services; building products; specialty coatings, chemicals and adhesives; active, outdoor and lifestyle apparel and accessories; food and restaurants; specialty retail; health and personal care; pet products and services; technology-enabled services; information services; and marketing and professional services.  The firm invests in companies across the US but has a specific focus on the Southwest and South.  CenterOak is based in Dallas (www.centeroakpartners.com).

These staff additions follow the August 2016 close of CenterOak Equity Fund I, LP with total commitments at the hard cap of $420 million. The significantly oversubscribed fund had an initial target of $350 million.

© 2016 Private Equity Professional • 10-27-16

Generation Growth Sells Atlantic Precision

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Generation Growth Capital (GGC) has sold Atlantic Precision, an aerospace machining company, to Precision Castparts.

Atlantic Precision (API) uses 3D metal printing and additive manufacturing technologies to provide prototyping and low volume production parts that are used in the aerospace industry. GGC invested in API in October 2014 to help the company execute on a growth and development strategy in additive manufacturing.  API is based in Port St. Lucie, FL (www.atlanticprecision.com).

“When GGC was first introduced to the team at API, we recognized their initial efforts in additive manufacturing could be a real game changer for prototyping and manufacturing in the aerospace markets,” said John Reinke, Managing Director of GGC. “We are proud to have had the chance to work with the team to support their growth and we look forward to watching their continued success as a part of Precision Castparts.”

Precision Castparts (NYSE: PCP) is an industrial goods and metal fabrication company that manufactures investment castings, forged components, and airfoil castings for use in the aerospace, industrial gas turbine, and defense industries. The company is headquartered in Portland, OR (www.precast.com).

“API represented a model investment for GGC. We were able to provide capital and a business support system that helped the company execute on an aggressive investment and growth strategy,” said Cory Nettles, a Managing Director of GGC.

GGC invests from $1 million to $10 million in manufacturing, service, and distribution businesses that have enterprise values of less than $30 million and sales ranging from $5 million to $50 million. Investments are primarily structured as equity but subordinated debt and warrant structures are also considered. The firm is headquartered in Milwaukee and has an additional office in Chicago (www.generationgrowth.com).

Imperial Capital (www.imperialcapital.com) was the financial advisor to API on the transaction.

© 2016 Private Equity Professional • 10-26-16

Kohlberg & Company Acquires MarketCast

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Kohlberg & Company has agreed to acquire the ownership interest of RLJ Equity Partners and State Street Global Advisors in MarketCast, a provider of information and data analytics to marketers and researchers in the entertainment industry. RLJ and State Street acquired MarketCast in December 2014 from Shamrock Capital Advisors.

MarketCast works with marketers and researchers at major motion picture studio and production companies to develop and execute marketing strategies.  The company’s services are available worldwide and include materials testing (trailers, TV spots, print ads, etc.), concept and positioning studies, exit polls, recruited audience screenings, tracking studies, and focus groups. Other services include brand and franchise studies, title tests, post-release studies, and attitudes and usage studies.

In August 2015, under RLJ and State Street ownership, MarketCast completed the acquisition of Insight Strategy Group, a New York-based research and strategy agency with practices in lifestyle, consumer goods, retail, and services businesses (www.insightstrategygroup.com).

MarketCast was founded in Boston in the late 1980s by three sociology professors – Joseph Helfgot, Frank Romo, and Michael Schwartz.  Today, the company is headquartered in Los Angeles with offices in New York, Boston and London (www.mcast.com).

Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on companies with EBITDAs between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg & Company was founded in 1987 and is based north of New York City in Mt. Kisco, NY (www.kohlberg.com).

“The MarketCast management team is highly enthusiastic about this new chapter for the company,” said Henry Shapiro, CEO of MarketCast. “Kohlberg has a 30-year track record of investing in service-based businesses with a focus toward long-term growth. The firm represents a strongly capitalized partner that will enable MarketCast to invest in new products and services, and expand into new and emerging forms of entertainment content, distribution, and marketing.”

“Through its suite of innovative, data-driven products and services, scalable, worldwide infrastructure, and dedication to exceeding customer expectations, MarketCast is positioned to serve the growing demands of the global entertainment marketplace,” said Ahmed Wahla, a Kohlberg Partner. “We see tremendous growth opportunities for MarketCast, both organically and through acquisitions, and look forward to partnering with management in the next phase of the company’s development.”

RLJ Equity Partners invests from $15 million to $30 million in companies valued between $50 million and $250 million. Target companies will have operating profits greater than $7 million and operating margins greater than 10%.  Sectors of interest include aerospace & defense; auto & transportation; business services; consumer retail; general industrial; and media & telecom.  RLJ Equity Partners was founded in 2006 by Robert Johnson in partnership with The Carlyle Group. The firm is headquartered in Bethesda, MD (www.rljequitypartners.com).

The buy of MarketCast by Kohlberg is expected to close by the end of November. “We feel fortunate to have had the opportunity to work with the MarketCast team, and assist the company through a period of rapid expansion and success. We are confident that the company will continue its growth trajectory in partnership with Kohlberg,” said Jerry Johnson, a Managing Director at RLJ.

Ropes & Gray (www.ropesgray.com) represented Kohlberg & Company on this transaction with a team led by private equity partner Christopher Rile that included finance partner Steven Rutkovsky, benefits partner Loretta Richard, tax partner Eric Elfman, intellectual property transactions partner David McIntosh, and business & securities litigation partner Peter Welsh.

Lazard Middle Market (www.lazard.com) was the financial advisor to MarketCast.

© 2016 Private Equity Professional • 10-26-16

Endowments and Foundations Increasing PE Exposure

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NEPC, one of the larger investment consulting firms to endowments and foundations, has published its Q3 2016 NEPC Endowment and Foundation Poll that measures endowment and foundation views on the economy, investing, and market trends. As with the Q3 Polls in 2014 and 2015, this survey focused on how endowments and foundations invest in and view private equity.

According to the survey, 43% of respondents are increasing their allocation to private equity and 53% are maintaining current exposure, with only 4% decreasing. As for which strategies are generating the most interest, investors are most attracted to Growth Equity (47%), Venture Capital (44%), and Buyouts (39%). This newfound attention is interesting because for the past two years, very few endowments and foundations expected private equity to generate higher returns (2014, 10%; 2015, 15%).

“After a year of strong performance, we’re not surprised to see endowments and foundations refocus their interest in private equity,” said Kristin Reynolds, Partner in NEPC’s Endowment & Foundation Practice Group. “We expect private equity will continue to attract assets as long as macroeconomic trends continue to drive lower expected returns in other classes. Given increased investor interest, it will be even more important to identify, vet, and select strong private equity managers.”

As for their outlook on private debt strategies, more than half of respondents (56%) are considering or have already invested in opportunistic credit, while 49% expressed the same view of distressed credit, and 39% for direct lending.

Click here for an infographic that highlights the survey’s primary findings

Valuations continue to be a top concern for private equity investors, however, with 56% of respondents citing it as their top concern, down slightly from the Q3 2015 survey (58%). Nearly a quarter (24%) think private equity generally is overvalued and 60% said current valuations will impact their future commitments. Investors’ second biggest concern with private equity was fund terms and fees (42%).

Other top findings include:

  • 67% are maintaining their exposure to fixed income; no respondents are increasing exposure.
  • US economic confidence is rising; 87% say the economy is in the same place or a better place than this time last year. This is a dramatic increase from Q2 2016 (50%).
  • Most see a slowdown in global growth as the greatest threat to near-term performance (63%).

The Q3 2016 NEPC survey was conducted online by the Endowment & Foundation Practice Group in September/October 2016.

NEPC has offices in Atlanta, Boston, Charlotte, Chicago, Detroit, Las Vegas and San Francisco, and services 118 endowment and foundation retainer relationships, representing assets of $57 billion as of June 30, 2016 (www.nepc.com).

© 2016 Private Equity Professional • 10-25-16

Rotunda Staffs Up

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Rotunda Capital Partners has added two professionals to its team with the hiring of Justin Potter and Rohit Dhake as Senior Associates. Mr. Potter will work out of the firm’s Washington, DC office and Mr. Dhake will work out of the firm’s Chicago office.

“We are excited to welcome Justin and Rohit to Rotunda Capital,” said John Fruehwirth, Managing Partner.  “Their addition will allow us to proactively source more deals within our core investment focus areas – value added distribution, specialty finance, asset-light logistics and business services.  In addition, they will provide additional operational assistance to our existing portfolio companies.”

Prior to joining Rotunda, Mr. Potter was a Senior Consultant at Ernst & Young where he provided strategic advice to financial services companies. His experience includes operating model assessment, systems integration, growth and profitability analysis, finance transformation, and project management. Mr. Potter earned his MBA from the University of Virginia and he has his undergraduate degree in Applied Economics from Cornell University.

Prior to joining Rotunda, Mr. Dhake worked at Prudential Capital Group where he focused on senior debt, subordinated debt, and private equity investment opportunities across a range of industries. He has his MBA from the University of Chicago and a BS degree in Finance and Accountancy from the University of Illinois.

Rotunda Capital invests in businesses with enterprise values of $15 million to $100 million. Sectors of interest include logistics, value-added distribution, specialty finance, and business services. Since founding in 2008, Rotunda has completed nine platform investments and realized three exits. The firm is headquartered in Bethesda, MD with an office in Northbrook, IL (www.rotundacapital.com).

“Rotunda is focused on building the pre-eminent independent sponsor in the lower middle market.  We need to continue to add top investment and operations talent to support all aspects of our business and ensure that we are well positioned to continue our success,” added Mr. Fruehwirth.

© 2016 Private Equity Professional • 10-25-16

Platinum Sells Mactac to LINTEC

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Platinum Equity has agreed to sell Mactac Americas to LINTEC Corporation in a transaction valued at approximately $375 million. Platinum acquired Mactac in November 2014 from Bemis Company for $170 million. In August 2016, Platinum sold Mactac’s European business to Avery Dennison for $218 million.

Mactac is a producer of pressure sensitive materials used in a range of industries including label printing, graphic design, packaging, digital imaging, retail display, fleet graphics, assembly engineering, automotive assembly, and medical device assembly. Mactac has operations in the United States, Canada and Mexico and is headquartered north of Akron in Stow, OH (www.mactac.com).

Mactac has experienced a significant turnaround in recent years under Platinum Equity ownership and adjusted EBITDA has grown more than 40% from 2014 to 2015.

“We partnered with Mactac President Ed LaForge and the company’s management team to transform Mactac by identifying and capitalizing on sustainable operational improvements while driving innovative new products and technologies,” said Platinum Equity Partner Louis Samson. “As a result, the company’s financial performance has been superb and the business is well positioned for continued growth and success.”

Mr. LaForge credited operational support from Platinum Equity and the strong commitment of Mactac’s employees for driving the turnaround. “We have achieved remarkable success thanks to a lot of hard work from our employees and a strong partnership with Platinum Equity,” said Mr. LaForge. “Working together, we implemented operational improvements throughout all areas of our business, invested in world-class manufacturing technologies, and just last year alone launched more than 40 new products.”

Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm has completed nearly 175 acquisitions since its founding in 1995. Platinum is based in Beverly Hills with additional offices in New York and London (www.platinumequity.com).

LINTEC, the buyer of Mactac, is a manufacturer of adhesive-related products with operations in 15 countries around the world. The company is headquartered in Tokyo (www.lintec-global.com).

Moelis & Company (www.moelis.com) and Goldman, Sachs & Co. (www.goldmansachs.com) are serving as financial advisors to Platinum Equity. Latham and Watkins (www.lw.com) is serving as Platinum Equity’s legal counsel.

© 2016 Private Equity Professional • 10-25-16

Greenbriar Acquires Frauscher Sensor Technology

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Greenbriar Equity Group has acquired Frauscher Sensor Technology, a supplier of train tracking products used in the railway signaling industry, in partnership with the company’s management team, led by CEO Michael Thiel.

Frauscher designs and manufactures railway wheel detection and axle counting systems based on inductive and acoustic sensing technologies.  The company’s products are used by system integrators and railway operators to monitor track occupancy across railway networks, and are a core element of railway traffic management systems. Frauscher operates eight subsidiaries across five continents and its products are installed in over 50 countries worldwide. The company is headquartered near Salzburg in St. Marienkirchen, Austria (www.frauscher.com).

Greenbriar will support Frauscher’s expansion into North America, while continuing to support management’s other global strategies. The investment will also be used to accelerate the development of the new Frauscher Tracking Solutions system, which is based on distributed acoustic sensing technology.

“Frauscher has established itself as the clear technology and quality leader in the industry. We are excited to partner with Michael Thiel and his team and look forward to supporting the company during its next growth phase,” said Michael Weiss, Managing Director at Greenbriar. “We are particularly excited about Frauscher’s opportunities to leverage its differentiated product offering within new and existing geographic markets and develop innovative products.”

Greenbriar Equity Group invests from $50 million to $150 million per transaction in the global transportation industry, including companies in aerospace & defense, automotive, freight & passenger transport, logistics & distribution, and related sectors. The firm manages $2.5 billion of committed capital and is based in Rye, NY (www.greenbriarequity.com).

“This is an exciting time for the entire Frauscher organization. We are eager to work with Greenbriar as our new partner to continue to implement our growth strategy. Their extensive experience and relationships in the rail industry will be invaluable as we expand our presence in North America and introduce new technologies into the marketplace,” said Mr. Thiel.

© 2016 Private Equity Professional • 10-25-16

Warren Buys IPC Lydon

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Warren Equity Partners has acquired a majority interest in IPC Lydon (“IPCL”) from Jay Cashman Inc., a provider of civil and marine contracting services. The acquisition of IPCL is Warren Equity Partners’ third investment of 2016.

IPCL is a provider of maintenance, repair and upgrade services for mechanical systems and process equipment used in airports, distribution centers, power plants, co-generation plants, and wastewater treatment facilities.  The management team at IPCL, led by John Burke and Jim Lydon, has expertise in large-scale baggage handling system maintenance and installation, turbine maintenance, CHP (combined heat and power) plant design and installation, and power plant outage services. IPCL is based south of Boston in Avon, MA (www.ipclydon.com).

“We are tremendously excited to partner with an exceptional management team led by John and Jim, as well as Jay Cashman,” said Scott Bruckmann, Principal at Warren Equity. “IPCL fits directly into our thesis of investing in businesses that provide critical, recurring services to the industrial and infrastructure sectors. We think the Company has a long runway for growth, and we look forward to expanding the platform with management.”

Warren Equity Partners makes control and non-control investments of $5 million to $40 million in North American-based small and middle market companies that are active in the infrastructure, industrial, and building sectors.  The firm was founded by Steven Wacaster, a former partner at Pegasus Capital Advisors, and Henrik Dahlback, a former investment banker at Royal Bank of Canada. The firm is headquartered in Jacksonville Beach, FL (www.warrenequity.com).

Jay Cashman Inc. provides heavy civil and marine contracting services including construction, dredging, and windpower. The company is based south of Boston in Quincy, MA (www.jaycashman.com). Jay Cashman, the Chairman and owner of the company will retain a significant equity interest in the company in partnership with Warren Equity Partners.

“We chose to partner with Warren Equity due to their understanding of the industrial services sector and excitement about scaling the business,” said Mr. Cashman. “We look forward to capitalizing on their expertise and capabilities as we enter this next phase of growth and continue to expand our footprint.”

© 2016 Private Equity Professional • 10-25-16

McNally Invests in Avionics Maker

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McNally Capital has made an investment in Genesys Aerosystems, a provider of avionics systems for military and civil aircraft manufacturers and operators. Genesys’ existing management team will retain a majority interest in the company.

Genesys Aerosystems’ products include 3D Synthetic Vision Electronic Flight Instrument Systems, S-TEC Analog and Digital Autopilots, HeliSAS Helicopter Autopilot and Stability Augmentation System, as well as other sensors and components. The company offers its systems as stand-alone components or integrated to provide entire cockpit solutions. Genesys Aerosystems, led by President and CEO Roger Smith, is headquartered west of Dallas in Mineral Wells, TX (www.genesys-aerosystems.com).

“We have partnered with McNally Capital because of their tremendous expertise, track record of partnering with management teams to drive growth, and capital resources. We believe they are the best partners to help grow our business over the long term,” said Mr. Smith.

“We are excited to partner with the Genesys management team in support of their strategy to expand their offerings, build additional capabilities, and grow the business,” said Ward McNally, Managing Partner at McNally Capital. “Our partnership with the Genesys management team is consistent with our strategy of partnering with the owners and managers of high quality businesses to help them achieve their long term growth objectives.”

McNally Capital works with family offices to help them make and manage their investments in private companies and private equity funds. The firm also acts as a principal investor and can partner with high net worth family offices to invest in companies with EBITDA’s from $2 million to $25 million. Sectors of interest include industrials, food, packaging, distribution, logistics, consumer and healthcare. McNally Capital is based in Chicago (www.mcnallycapital.com).

“Genesys has established a leadership position within numerous avionics segments by developing innovative and customizable solutions that address critical customer needs. By continuing to invest in its offerings, Genesys is well positioned to expand its unique technologies and product portfolio,” added Brett Mitchell, a Principal at McNally Capital.

© 2016 Private Equity Professional • 10-25-16

Atlantic Street Closes Fund III

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Atlantic Street Capital has closed Atlantic Street Capital III, LP with $210 million of committed capital, just beating the firm’s target raise of $200 million. Fund III received support from its existing investors and also added a number of new limited partners.

“Atlantic Street has built a successful track record and our third fund is a significant endorsement of our ability to leverage proven operating experience to drive transformations of our portfolio companies,” said Peter Shabecoff, Atlantic Street’s founder and Managing Partner. “With the completion of our latest fund we are now very well positioned to continue investments in our target industries as we work collaboratively with management teams to accelerate growth and create exceptional strategic value for all stakeholders.”

Atlantic Street Capital invests from $10 million to $30 million in middle market companies with EBITDA from $4 million to $12 million. Sectors of interest include consumer products and services, transportation and logistics, business services, and basic manufacturing. The firm was founded in September 2006 and is based in Stamford, CT (www.atlanticstreetcapital.com).

Atlantic Street has 15 investment professionals and just last month added three new investment professionals with the hirings of George Parry and M. Kurt Lentz as Principals of the firm, and Sarah Robson as Vice President of Business Development. “We remain enthusiastic about the rich pipeline of prospective investments we have identified for Fund III,” said Managing Partner Andy Wilkins. “We are confident we have the right team to execute our differentiated value creation strategy that will transform middle market companies and deliver value for our investors.”

New York-based law firm Morrison Cohen (www.morrisoncohen.com) served as legal counsel for Atlantic Street Capital on this fundraise.

© 2016 Private Equity Professional • 10-20-16

With New Fund Raised, Arsenal Adds Healthcare Operating Partner

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Arsenal Capital Partners has hired David Spaight as an Operating Partner within the firm’s Healthcare Group. Earlier this week, Arsenal Capital Partners held a final close of Arsenal Capital Fund IV LP at its $1.3 billion hard cap. The firm’s previous fund, Arsenal Capital Partners III LP, was raised in 2012 with $875 million of committed capital.

Mr. Spaight was most recently Chairman and Chief Executive Officer of contract research organization WIL Research Company. In April 2016, Mr. Spaight led the $585 million sale of WIL Research to publicly-traded Charles River Laboratories (NYSE: CRL). Prior to his time at WIL Research, which began in 2010, Mr. Spaight held numerous senior executive positions at a number of biopharma services and life sciences companies including MDS Pharma Services, ThermoFisher, and PerkinElmer. Mr. Spaight received his MBA and a BS in Chemistry from the University of Michigan.

“This is a uniquely exciting and important time to be working within the healthcare industry,” said Mr. Spaight. “Significant opportunities exist to improve the efficacy of patient care by improving the workflow of pharmaceutical research and development and provider operations. Our team and our Arsenal portfolio companies are committed to this important work. I joined Arsenal with a shared enthusiasm for these endeavors.”

Arsenal invests in middle-market specialty industrial and healthcare companies that have $50 million to $250 million in enterprise value.  Industries of specific interest include specialty and fine chemicals; healthcare; transportation and logistics; power generation; aerospace and defense; and process industry components and services. The firm has offices in New York and Shanghai (www.arsenalcapital.com).

“Arsenal has an established track record of building world-class businesses that drive process improvements in key sectors of healthcare. In particular, we have made a number of investments in businesses that help improve the safety and productivity of pharmaceutical and biotechnology research and development. We are confident David will make a major contribution to this important mission,” said Stephen McLean, Arsenal Partner and co-Head of Arsenal’s Healthcare Group.

© 2016 Private Equity Professional • 10-20-16