Auxo Investment Partners has held a final hard-cap close of its first fund, Auxo Growth Holdings I LLC (Fund I), with $50 million in committed capital. Investors in the new fund include family offices and institutional investors.
Auxo invests in North America-based companies that have from $1.5 million to $15 million of EBITDA. Sectors of interest include manufacturing, industrial, value-added distribution and business services. Typical investments for Auxo occur at corporate transition points, including owner-operators planning retirement, companies exploring family succession, and ownership/management teams seeking growth capital. The firm prefers majority-control investments but will consider select minority opportunities.
Under Auxo’s model, investors in its fund are provided opportunities to co-invest in portfolio companies and they also participate in all the economic benefits generated by Auxo, including carried interest and fees. According to Auxo, this structure provides the firm and its investors with a strong measure of economic alignment and operating transparency.
“We’ve established tremendous momentum since we launched – and we’re very proud to have strategically attracted value-added investment partners who share our vision of investing in companies for the long term,” said Jeff Helminski, a Managing Partner of Auxo. “We’ve been able to build strong relationships with substantial and active family offices who created their wealth in the industries we’re looking to invest in, which offers immense benefits both to Auxo and our portfolio companies. Our unique approach has become a true differentiator in the market for attracting capital and in being selected as the successors to family-owned businesses. We believe there is no private equity firm like it anywhere.”
“We view ourselves not just as investors but as stewards of both our investors’ capital and the legacies of our portfolio companies and their owners,” said Jack Kolodny, a Managing Partner of Auxo. “Auxo’s unique capital structure provides the flexibility we need to make decisions based on what’s best for all of our stakeholders in the long-term.”
Capital from the Fund I will be combined with direct co-investments to put to work approximately $150 million of equity in 10 to 15 companies over the next three years. In fact, Auxo has already invested over $30 million of equity in four acquisitions.
- Midway Rotary Die Solutions (acquired in September 2018), a Williamston, MI-based designer, manufacturer and sharpener of dies for customers in the automotive, packaging, medical, food processing, tag-and-label, specialty and photo-cutting industries;
- Bernal Rotary Dies (acquired in August 2017), a Rochester Hills, MI-based maker of complex solid rotary pressure dies, crush cut dies, and rotary converting systems for die cutting, food processing, folding cartons, specialty bandages and alcohol swabs;
- Atlas Die (acquired in August 2017), an Elkhart, IN-based maker of flexible rotary dies used in the consumer products, packaging, food and beverage, medical and pharmaceutical; greeting cards, lottery and gaming tickets and folding cartons.
- M/G Transport Services (acquired in November 2017), a Metairie, LA-based an operator of inland barges that annually transports more than 5 million tons of non-hazardous dry bulk cargo.
Auxo’s investments in Midway Rotary Die, Bernal Rotary Die, and Atlas Die are all held by Auxo Die Holdings.
Auxo was founded in October 2016 and is led by its managing partners Jeff Helminski, Jack Kolodny and Fred Tedori. The firm, which is named after the ancient Greek goddess of growth, has offices in Grand Rapids, MI and Los Angeles, CA (www.auxopartners.com).
© 2018 Private Equity Professional | September 11, 2018