Archives for October 12, 2017

Private Equity Leads the Way on Puerto Rico Aid

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Private Equity for Puerto Rico, formed by a group of leading private equity firms, including Clearlake Capital Group, Valor Equity Partners, StepStone Group, Palladium Equity Partners, and MoonSail Capital announced today an effort to raise significant funds from the private equity and financial communities to aid victims of Hurricane Maria in Puerto Rico.

Private Equity for Puerto Rico seeks to raise $10 million for the hurricane-ravaged island by encouraging the diverse private equity network, including banks and advisors, to donate via its Classy page, at https://give.classy.org/peforpr. All funds raised will be donated to the Foundation for Puerto Rico, a vetted non-profit organization on the ground in Puerto Rico that is focusing all of its efforts and resources on relief, recovery and rebuilding efforts on the island.

Foundation for Puerto Rico (FPR) is a 501(c)(3) local non-profit organization incorporated in 2011 with over 15 employees. FPR’s mission is to transform Puerto Rico into a premier destination for the world by developing and implementing sustainable strategies that drive the visitor economy in the island. Due to the devastating impact hurricane María had in Puerto Rico, FPR has shifted its work to focus on relief efforts that will boost the recovery of the island and help those in need. For the time being, FPR’s work will focus on rebuilding the island.

The Fund has already raised $800,000, anchored by a commitment of up to $500,000 from Clearlake Capital Group and the Kwanza Jones and José E. Feliciano Supercharged Initiative (“KJSI”). Under the commitment, KJSI and Clearlake together will match all donations up to $500,000. Valor Equity Partners is also anchoring the Fund with a $200,000 commitment, and StepStone has committed $100,000. Funds will be given to the Foundation for Puerto Rico on a rolling basis as donations are received.

The Supercharged Initiative, founded by Kwanza Jones and José Feliciano, is a philanthropic organization focused on grant-making and strategic impact investing as well as policy and advocacy work. The focus of KJSI is education, entrepreneurship, equal opportunity and empowerment (www.kjsi.org).

Founding members of Private Equity for Puerto Rico include Clearlake Capital Group’s José Feliciano and Behdad Eghbali; Juan Sabater of Valor Equity Partners; José Fernandez of StepStone Group, Marcos Rodriguez and David Perez of Palladium Equity Partners; and Rafael Ortiz, Joseph Acevedo and Carlos Rodriguez of MoonSail Capital.

“In the face of so much anguish and devastation as a result of this unimaginable event, we wanted to find a way to assist the people of Puerto Rico,” said Jose Feliciano, Co-Founder and Managing Partner of Clearlake Capital Group. “Our beloved island needs our help now and going forward in what will undoubtedly be a long path to recovery. As a native of Puerto Rico, I hope this donation from Clearlake and KJSI serves as a seed that helps us achieve our $10 million goal in collaboration with the Foundation for Puerto Rico and our friends in the private equity and broader financial community.”

“Many in the private equity industry have asked how they can help, and donating to PE for PR is just one easy way. The Foundation for Puerto Rico is already helping in cities and rural areas across the island. They are getting basic necessities, such as water and food, to those who are on the brink. They are also helping with energy and communication initiatives. We at Valor and I, as a proud Puerto Rican, are grateful for their work and we look forward to getting available funds to them as quickly as possible,” said Juan Sabater, Partner of Valor Equity Partners.

“This is a critical time for Puerto Rico, and getting funds to the island and a proven aid organization is the best way to help. Our goals are not only to eliminate the suffering, but to provide the backing that will enable a stronger Puerto Rico to emerge,” said José Fernandez, Partner and Chief Operating Officer at StepStone Group.

“While some assistance has arrived in the bigger cities, it’s important to keep the smaller municipalities in mind. Relief just isn’t getting there,” said Marcos Rodriguez, Chairman and Chief Executive Officer of Palladium Equity Partners. “We’ve set up the Fund and the Classy page, and will be working with the well-respected Foundation for Puerto Rico to make it as easy as possible for firms and individuals to donate to this worthy cause. In just a few clicks everyone can help a little, and together, we can help a lot.”

“The devastation in Puerto Rico is widespread and much more help is needed. While today people require basic necessities to survive, the focus will ultimately move to reconstruction of this island that has endured more than $90 billion in damage. Together with the Foundation for Puerto Rico, we can help ensure safety, recovery, and the best future for Puerto Rico,” said Rafael Ortiz, Managing Director of MoonSail Capital.

© 2017 Private Equity Professional | October 12, 2017

Victor and Allstate Acquire PrimaLoft

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PrimaLoft, a maker of high-performance insulations and yarns, has been acquired by Victor Capital Partners and the private equity group of The Allstate Corporation in partnership with the company’s management team.

PrimaLoft is a manufacturer of performance insulations, fabrics and yarns that are used in a wide variety of outdoor and fashion brands, home furnishings, work wear, hunting and military applications. The company is headquartered near Albany in Latham, NY and has offices in Munich, Germany and Xiamen, China (www.PrimaLoft.com).

In 1983 the US Army approached PrimaLoft’s former parent company Albany International to develop a water resistant synthetic alternative to goose down for use in military sleeping bags and clothing systems. In May 1986 a patent for “synthetic down” was awarded to Albany International and in 1988 PrimaLoft was launched as a subsidiary of Albany International to commercialize the technology. In 1989 the first commercially available PrimaLoft insulated garment was manufactured by L.L.Bean.

Prudential Capital Group purchased PrimaLoft in May 2012 from Albany International. Mike Joyce, former President of Albany International’s Applied Technology Group and the PrimaLoft senior management team partnered with Prudential on this transaction.

“This is an incredible opportunity to enhance the future of PrimaLoft,” said Mike Joyce, President and CEO of PrimaLoft.  “In recent years, we have enjoyed significant growth and further established PrimaLoft as a leading consumer ingredient brand that partners with many of the best outdoor, fashion, and home furnishings companies in the world.  Our new partnership with Victor Capital and Allstate will provide the capital, commitment and operating support to drive our technological innovation and market development to new levels.”

“We are delighted to be partnering with Mike Joyce and the talented team at PrimaLoft and bringing our experience working with valuable consumer brands to the company,” said Douglas Korn, Managing Partner of Victor Capital.  “The strong and growing reputation of the PrimaLoft brand and the company’s history of leadership in developing innovative technologies offer an exciting platform for continued growth.  We look forward to helping the management team propel the company to new levels of success.”

Victor Capital Partners invests from $20 million to $100 million in middle-market companies that have EBITDA from $10 million to $100 million and are active in industrial manufacturing and technology, industrial and business services, and specialty consumer products and services. The firm was founded in September 2015 by Douglas Korn and is headquartered in New York (www.victorcapitalpartners.com).

Allstate’s private equity group, part of The Allstate Corporation (NYSE: ALL), currently manages more than $6 billion of invested capital that is invested in both direct transactions and private equity funds. The group has offices in Chicago, London, and Hong Kong (click HERE for the group’s website).

Prudential Capital Group (PCG) is the private equity investment arm of publicly-traded Prudential Financial (NYSE: PRU). The group offers senior debt and junior capital, leveraged leases, and equipment financing to companies and projects worldwide. PCG has offices in Atlanta, Chicago, Dallas, Frankfurt, London, Los Angeles, Milan, Minneapolis, Newark, New York, Paris, San Francisco and Sydney (www.prudentialcapitalgroup.com).

Financing for the buy of PrimaLoft by Victor Capital and Allstate was provided by Madison Capital Funding (www.mcfllc.com), Antares Capital (www.antares.com), and Intermediate Capital Group (www.icgam.com).

© 2017 Private Equity Professional | October 12, 2017

CenterGate Acquires TSC Apparel

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CenterGate Capital has acquired TSC Apparel, a distributor of imprintable apparel products and accessories.

TSC Apparel is a national business-to-business distributor of imprintable activewear and accessories. The company stocks thousands of styles of tees, fleeces, headwear, sport shirts, outerwear, and accessories and has six warehouses in the US in Denver, CO; Fullerton, CA; Cincinnati, OH; Perry, GA; Houston, TX; and Philadelphia, PA. The company also has three warehouses in China. TSC was founded in 2000 and is headquartered in Cincinnati (www.tscapparel.com).

TSC is led by its Chief Executive Officer Bob Winget who will continue to lead the company under CenterGate ownership and serve on TSC’s board of directors. “We are excited about our partnership with CenterGate and what it means for our customers and vendors,” said Mr. Winget. “CenterGate’s investment will provide the capital and strategic resources to continue to expand our products and market presence.”

“We are excited to partner with the entire TSC team,” said Tiffany Kosch, Managing Director at CenterGate. “As a market leader, TSC is well-positioned to continue providing its unique combination of service and scale. We believe our partnership will provide access to additional opportunities and enable TSC to successfully continue executing its growth strategy.”

CenterGate Capital invests in lower middle market companies that have from $20 million to $250 million of revenue and up to $20 million of EBITDA. Sectors of interest include business services, industrials, energy services, consumer, and healthcare. In December 2016, the firm held an above target and oversubscribed final closing of CenterGate Capital Partners I LP with $350 million of capital commitments. CenterGate is headquartered in Austin (www.centergatecapital.com).

© 2017 Private Equity Professional | October 12, 2017

JZ and Edgewater Exit Nielsen-Kellerman

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JZ Partners and The Edgewater Funds have sold their portfolio company Nielsen-Kellerman Co., a designer, manufacturer and distributor of waterproof environmental and sports performance instruments, to Clearview Capital.

Nielsen-Kellerman’s products – sold through a network of dealers in the United States and internationally under the Kestrel, NK, and Blue Ocean brands – include various consumer electronics that are used for monitoring sports performance and environmental conditions and include weather measurement, audio amplification, stroke/speed data and timing products.

Nielsen-Kellerman’s products are used in rowing and paddling, auto racing, concrete installation, construction and industrial, firefighting, HVAC and home inspection, military and shooting, and hunting applications. The company, led by CEO Alix James, was founded in 1978 and is headquartered near Philadelphia in Boothwyn, PA (www.nkhome.com).

Nielsen-Kellerman was acquired by JZ Partners and The Edgewater Funds in December 2010 through Sensor Solutions Holdings, a platform formed to acquire specialized sensor equipment manufacturers. In addition to Nielsen-Kellerman, Sensor Solutions also acquired Amptek, a manufacturer of X-Ray detectors, in April 2012. Amptek was sold to AMETEK (NYSE: AME), a manufacturer of electronic instruments and electromechanical devices, in August 2014.

JZ Partners invests in US and Canadian-based companies that have up to $200 million in enterprise value.  Sectors of interest include niche manufacturing; value-added distribution; industrial services; healthcare; education; transportation and logistics; and business services. The firm was founded in 1986 by Jay Jordan and David Zalaznick and has offices in New York and Chicago (www.jzpartners.com).

The Edgewater Funds invests in companies with revenues from $20 million to $500 million and EBITDAs from $5 million to $30 million. Sectors of interest include business services, financial and government services, consumer products and services, healthcare services, IT services and software and basic industries. The firm has $2.6 billion in committed capital and is based in Chicago (www.edgewaterfunds.com).

Clearview Capital, the buyer of Nielsen-Kellerman, invests from $8 million to $50 million of equity in companies that have from $3 million to $15 million of EBITDA. Sectors of interest include business services, healthcare services, manufacturing, and specialized distribution. The firm was founded in 1999 by James Andersen and Calvin Neider and is headquartered in Old Greenwich, CT with an additional office in Los Angeles (www.ClearviewCap.com).

D.A. Davidson & Co. (www.dadavidson.com) was the financial advisor to Nielsen-Kellerman on this transaction. “The Kestrel and NK brands are respected in demanding outdoor markets for their relentless focus on accuracy, quality and reliability,” said Mike Smith, Managing Director at D.A. Davidson. “We are privileged to represent such a distinguished American-made brand and we have the highest respect for what management, JZ Partners and The Edgewater Funds have accomplished.”

© 2017 Private Equity Professional | October 12, 2017