Archives for November 2017

Trinity Hunt Invests Again in Legal Services

by

Trinity Hunt Partners has acquired WEXCO International, a provider of litigation-focused forensic engineering services.

WEXCO’s services include premises liability and safety engineering, accident reconstruction, and construction defect analysis. The company was founded in 1969 and has investigated over 10,000 cases, provided more than 2,000 depositions, and testified in over 600 trials.  WEXCO is headquartered in Marina del Rey, CA with additional offices in Berkeley, CA and Cedar Park, TX (www.wexco.net).

Trinity Hunt is partnering with Brad Avrit, the company’s owner and president, on this transaction and he remains a significant shareholder of WEXCO post-closing. “WEXCO has embarked on a strategic growth plan to become a market leader in the forensic engineering space,” said Mr. Avrit. “Our partnership with Trinity Hunt will position us with the experience, resources and value creation plan needed to rapidly accomplish this goal.”

Through its partnership with WEXCO, Trinity Hunt intends to acquire similar or complementary businesses across the United States. “Trinity Hunt is extremely excited to partner with Brad and his team, especially given the alignment of business philosophies and core values between our firms,” said Pete Stein, a partner at Trinity Hunt. “Brad has done an exceptional job at positioning WEXCO for future growth and we look forward to working with him to accelerate these opportunities.”

Trinity Hunt has been very active in the legal process outsourcing sector with prior investments in Lexitas, a Houston-headquartered provider of deposition transcription reporting, legal videography, and records retrieval services for law firms and corporate legal departments (acquired in February 2015) (www.lexitaslegal.com); IMS ExpertServices, a Pensacola, FL-based provider of expert witness search, credentialing, and placement services (acquired in November 2017) (www.ims-expertservices.com); and Equivalent DATA (now Consilio), a Washington, DC-headquartered provider of eDiscovery and document review services (acquired in May 2012 and sold to Advanced Discovery, a portfolio company of GI Partners, in April 2018) (www.consilio.com).

“With WEXCO, our fourth investment within the legal process outsourcing space, we plan to bring our full resources and relationships to bear on behalf of the company,” added Mr. Stein.

In September 2018, Trinity Hunt held a final closing of its fifth fund, Trinity Hunt Partners V LP, at an oversubscribed $350 million in capital commitments. The new fund exceeded its initial target of $300 million and closed at the hard cap.

Dallas-based Trinity Hunt invests in founder and family-owned companies that have EBITDAs between $4 million and $25 million. Sectors of interest include business services, industrial growth, non-cyclical consumer products, and healthcare services (www.trinityhunt.com).

© 2019 Private Equity Professional | August 8, 2019

Spanos Barber Jesse Goes Glamping

by

Spanos Barber Jesse & Co. (SBJ) has acquired Under Canvas, a provider of luxury camping services or, as it is otherwise called, “glamping” (glamorous camping). According to SBJ, Under Canvas is one of the fastest growing adventure-hospitality brands in America.

Under Canvas provides travelers with luxury canvas tent accommodations and an authentic outdoor experience. The company operates four specialized campsites: near Zion National Park in Utah; near Arches National Park and Canyonlands National Park in Utah; near Yellowstone National Park in Montana; and Glacier National Park in Montana. Guest accommodations include private canvas tents, luxury beds and linens, and optional en-suite bathrooms and showers.

Under Canvas also provides guest services which include curated adventures, outdoor dining options, daily housekeeping, and communal events. Under Canvas is headquartered in Bozeman, MT (www.undercanvas.com).

“We are excited to be investing with co-founders Sarah and Jacob Dusek, so they can deliver amazing outdoor experiences to even more guests at new camps across the US,” said Tom Barber, Managing Director at SBJ.

SBJ invests from $8 million to $35 million in consumer, business services and healthcare services companies that have up to $100 million in revenue and EBITDA from $1 million to $10 million. In October 2015, SBJ held a final closing on its debut fund, SBJ Fund LP, with total capital commitments of $204 million, exceeding its original $150 million target. The firm was founded by Gus Spanos, Tom Barber and Bill Jesse and has offices in Walnut Creek, CA (near San Francisco) and in Dallas, TX (www.sbjcap.com).

“Today’s consumers crave memorable experiences and staying with Under Canvas combines pristine landscapes, innovative tent design and hotel-like guest services to create a truly unique and unforgettable family vacation,” said Ben Landis, a Principal at SBJ.

“We are excited to partner with SBJ as we build and expand the Under Canvas brand. Our team looks forward to continued growth with new camps near the Great Smoky Mountains, the Grand Canyon and Mount Rushmore, amongst others, in the years to come,” said Ms. Dusek.

© 2017 Private Equity Professional | November 30, 2017

Yukon Closes Fund III at Hard Cap

by

Yukon Partners has held a final closing of Yukon Capital Partners III LP and associated parallel funds at the hard cap of $559 million in total capital commitments.

Yukon Partners makes subordinated debt and equity investments of $10 million to $50 million in middle market, private equity sponsored business transactions. Since its inception in 2008, Yukon has now raised over $1.2 billion in total capital commitments across its three funds.  Fund III will be invested by Yukon’s partner group; Michael Hall, William Dietz, and Michael Furey who combined, have executed more than 81 investments representing over $1.3 billion of invested capital since 2000.

“Since founding Yukon, we have remained focused on our middle market niche and have consistently generated attractive investments across all business cycles,” said William Dietz, Managing Partner of Yukon.

Fund III has already invested $85 million through three transactions since the fund began investing in June 2017.  In July, Yukon provided mezzanine debt and made an equity co-investment in Tooling Technology Group, a Fort Loramie, OH-based supplier of tooling used in a variety of material forming processes primarily for the automotive industry. Tooling Technology is a portfolio company GenNx360 Capital Partners; In August, Yukon provided mezzanine debt to back Centre Partners’ acquisition of Golding Farms Foods, a Winston-Salem, NC-based manufacturer of private label, branded, and co-manufactured sauces and condiments; and in September 2017, Yukon provided mezzanine debt to back the acquisition of Practice Insight, a Houston, TX-based provider of revenue cycle management software and services to healthcare practitioners, by an unidentified strategic buyer. Practice Insight had been a portfolio company of Halyard Capital.

“We are pleased to have the opportunity to continue investing on behalf of our loyal and supportive investor base, and excited to work with our new limited partners participating in Fund III.  Investors include both domestic and international pension funds, insurance companies, endowments, foundations, consultants, and family offices,” said Michael Hall, Managing Partner of Yukon.

Credit Suisse’s Private Fund Group was an advisor and the placement agent for Fund III. Dorsey Whitney and Schiff Hardin provided legal services.

Yukon Partners is based in Minneapolis (www.yukonpartners.com).

© 2017 Private Equity Professional | November 30, 2017

Andrew Gustin Joins Platte River

by

Platte River Equity has added a new member to its team with the hiring of Andrew Gustin as a Principal and Head of Business Development. Mr. Gustin has more than ten years of experience as a private equity investor and business development professional.  He will be responsible Platte River’s transaction sourcing, marketing and business development efforts.

Mr. Gustin comes to Platte River following the raising of the firm’s fourth fund, Platte River Equity IV LP, which closed at its hard cap of $625 million in June 2017. The firm’s earlier fund, Platte River Equity III LP, was raised in 2012 and had committed capital of $405 million.

Prior to joining Platte River, Mr. Gustin was with Indianapolis-based Hammond, Kennedy, Whitney & Company – he joined HKW in March 2010 – where he was responsible for the firm’s transaction generation activities, including sourcing new investment opportunities, developing new business relationships, marketing, advertising and managing the firm’s CRM system.  Earlier in his career he was an analyst with Eli Lilly and Company.  Mr. Gustin has a BA in Economics and Computer Science from DePauw University.

Platte River makes equity investments of $20 million to $100 million in lower middle-market companies with enterprise values between $40 million and $250 million. Sectors of interest include aerospace and transportation; energy and power; agriculture and chemicals; and metals and minerals. Platte River is based in Denver (www.platteriverequity.com).

© 2017 Private Equity Professional | November 30, 2017

HCI Equity Closes Fund V

by

HCI Equity Partners has closed its fifth fund, HCI Equity Partners Fund V LP, above the targeted amount of $400 million.

HCI Equity Partners (HCI) is led by Managing Partners Dan Dickinson, Doug McCormick, and Scott Rued and was founded in 2003. The firm invests in industrial products and service companies that have from $20 million to $200 million in annual revenue and $5 million to $20 million in EBITDA. Sectors of interest include aerospace and defense; transportation products and services; distribution; infrastructure products and services; niche manufacturing; and industrial services.

“HCI is pleased to further diversify our investor base and align with long-term limited partners supportive of HCI’s operationally intensive approach to investing,” said Mr. Dickinson. “We’re thankful for the confidence our investors have placed in HCI to continue our active approach to building solid partnerships with owners and management teams.”

HCI is headquartered in Washington, DC with additional offices in Chicago and Minneapolis (www.hciequity.com).

Fund V will begin its investment activities in January 2018.

UBS served as the placement agent for Fund V and Kirkland & Ellis served as legal counsel.

© 2017 Private Equity Professional | November 29, 2017

Churchill Closes New Fund

by

Churchill Asset Management has completed fundraising for Churchill Middle Market Senior Loan Fund LP, its inaugural fund as part of Nuveen, with over $1.1 billion in committed capital.

Churchill Asset Management (Churchill) was launched in April 2015 by financial services provider TIAA (Teachers Insurance and Annuity Association of America) to originate, underwrite and manage senior loan investments primarily in US-based middle-market companies.  Churchill, which operates within Nuveen, the institutional and individual asset manager of TIAA, is led by the former senior management team of Churchill Financial which was acquired by The Carlyle Group in November 2011.

The new fund has commitments from a diverse group of global institutions including pension plans, insurance companies, foundations, single and multi-family offices and high net worth investors based in North America, Europe, South America and Asia.

“We are delighted with the strong response we received from investors across the globe to our inaugural fund offering as part of Nuveen. Our investors include over 30 leading institutions and family offices globally, and we are grateful for their confidence in us and support for our investment approach,” said Ken Kencel, President and CEO of Churchill. “As investors increasingly look to private credit for income and diversification, we are extraordinarily well-positioned to benefit from our very strong and longstanding relationships in the private equity community and deep expertise in financing middle market companies to provide products that meet the needs of investors globally.”

The new fund invests in senior secured loans to US middle market companies with annual EBITDA of up to $100 million that are owned or controlled by private equity firms. Churchill’s senior management team has an average of over 25 years of middle market lending experience and has invested over $6.5 billion in over 500 middle market companies controlled by over 150 private equity sponsors over the past 12 years.

Churchill, an affiliate of Nuveen and a majority-owned, indirect subsidiary of TIAA, has approximately $3.7 billion in committed capital under management. The firm manages capital on behalf of TIAA and other institutional and high net worth investors through commingled funds, separately managed accounts, CLOs and other investment vehicles.  Churchill is headquartered in New York (www.churchillam.com).

© 2017 Private Equity Professional | November 29, 2017