Pfingsten Closes Tenth Fund V Platform

Pfingsten has acquired Advanced Lighting Concepts (DBA Environmental Lights) in partnership with the company’s founders, Greg and Anne Thorson, and its management team.

Environmental Lights is a designer and provider of commercial accent LED lighting used in retail, entertainment, trade show, hospitality, gaming and architectural applications. The company specializes in highly engineered systems that create differentiated visual experiences.

Environmental Lights sells its LED systems through direct sales engineers that are active from project inception, through planning, specification and installation. The company, led by CEO Jamison Day and President Jordan Brooks, was founded in 2006 and is headquartered in San Diego.

“Environmental Lights delivers innovative products that enhance surroundings and drive strong visibility for pre-eminent brands, productions and events,” said Scott Finegan, a managing director at Pfingsten. “We are excited to support the growth of Environmental Lights and will invest in people and product development. We also plan to pursue strategic add-on acquisitions that will provide value to the customer base.”

Pfingsten invests in middle-market manufacturing, distribution and business services companies that have transaction values ranging from $15 million to $100 million, revenues from $20 million to $150 million, and EBITDA between $3 million and $12 million. Since completing its first investment in 1991, Pfingsten has acquired 139 such companies through five funds with total commitments of $1.3 billion. The firm is based in Chicago with representative offices in India and China.

Twin Brook Capital Partners, the middle-market direct lending arm of Angelo Gordon, served as administrative agent on debt financing to support the buy of Environmental Lights by Pfingsten.  Chicago-based Twin Brook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. The firm targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million up to $150 million. Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.

Lincoln International and Canaccord Genuity were the financial advisors to Environmental Lights.

This transaction closed on November 22nd and is the tenth platform investment for Pfingsten’s $382 million fifth fund which closed in March 2016.

© 2019 Private Equity Professional | November 26, 2019

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