Crossplane Capital, a new lower-middle market private equity firm, has been launched in Dallas. The new firm was founded by partners Brian Hegi and Ben Eakes, both are former managing directors of Prophet Equity.
Crossplane will make control investments in niche manufacturing, value-added distribution and industrial business services companies that have up to $200 million of annual revenue. The firm has a specific interest in family-owned companies and companies involved in complex situations.
Joining Messrs. Hegi and Eakes as an operating partner is Ingrid West, the former president of Acton Mobile, a Baltimore, MD-based provider of modular space and portable storage rental solutions. Acton Mobile was a portfolio company of Prophet Equity from August 2014 to December 2017. Also joining Crossplane as a managing director is Mike Sullivan who, like the founders, is a former managing director of Prophet Equity.
In total, the Crossplane team has eight decades of combined experience working with industrial companies as senior executives, operational improvement consultants, strategy consultants, restructuring advisors and private equity investors. “We are excited to launch Crossplane with such an experienced, cohesive and complementary team that fosters a collaborative and empowering culture and places investors’ best interests at the forefront of all decisions,” said Mr. Hegi. “This is the DNA of Crossplane Capital, and we look forward to collaborating with each of our future portfolio companies to help accelerate cash flow improvement and create lasting competitive advantages.”
Crossplane will make control investments of up to $120 million in US or Canadian companies that have $40 million to $200 million in revenue and up to $15 million of EBITDA. In addition, the firm will invest in companies that are experiencing financial or operational underperformance or are in a cyclically out-of-favor industry. Sectors of interest include aerospace & defense, automotive, building products, business services, chemicals, construction & infrastructure, consumer goods, equipment rental, facilities services, food & beverage, plastics & packaging, and transportation & logistics.
“With experience at top private equity and professional services firms, including Prophet Equity, AlixPartners, Bain & Company and Houlihan Lokey, and as executives within leading industrial businesses, including Danaher and Acton Mobile, our well-rounded team brings a proven value creation playbook to family-owned businesses and companies involved in complex transactions,” said Mr. Eakes. “Hand in hand with management, we will seek to build great businesses through prudent net working capital management, rigorous cost optimization and thoughtful revenue growth.”
Crossplane Capital is headquartered in Dallas (www.crossplanecapital.com).
© 2018 Private Equity Professional | November 1, 2018