Align Capital Partners has closed its second fund, Align Capital Partners Fund II LP and Align Capital Partners Fund II-A LP (together ACP II), at the combined hard cap of $450 million.
Fundraising for ACP II began in November 2019 with an initial target of $400 million. Align’s first fund closed at its $325 million hard cap in September 2016. With the closing of ACP II, Align has now raised more than $775 million since the firm’s founding in 2016.
“We appreciate the continued support from our existing investors and are grateful for the strong interest from the new limited partners joining us in ACP II,” said Mr. Dyke. “ACP continues to attract high-quality investors whose partnership and trust are essential to the success of our firm.”
Align Capital Partners, with offices in Cleveland and Dallas, makes control investments in companies with enterprise values up to $150 million that have from $3 million to $10 million of EBITDA. Sectors of interest include business-to-business services, specialty manufacturing, and value-added distribution. The firm was founded in 2016 by managing partners Steve Dyke, Rob Langley, and Chris Jones – all formerly of The Riverside Company – and has a total of 18 team members.
“ACP has built our brand around being disciplined growth investors in the true lower middle market, and we continue to believe in the potential it offers,” said Mr. Langley. “There is no change to our focus in ACP II. Our willingness to start small and aggressively invest in a company’s people, processes, and systems has resulted in a distinctive portfolio in ACP I that we’re proud to own.”
Since raising is first fund in 2016, Align has acquired 8 platforms and closed 16 add-on investments. The firm’s eight portfolio companies are:
- Alliance Source Testing (AST), an Alabama-based provider of emissions testing services to industrial facilities for permitting and compliance with air-quality standards from local, state and federal regulatory bodies. AST was acquired in October 2016 and has closed three add-on acquisitions;
- Pleatco Filtration, a Kentucky-based provider of aftermarket and OEM replacement filter cartridges used in the industrial air and pool/spa markets. Pleatco was acquired in June 2017 and has closed three add-on acquisitions;
- SEAM Group, an Indiana-based provider of outsourced electrical and workplace training and safety services. SEAM (then Lewellyn Technology) was acquired in November 2017 and has closed two add-on acquisitions;
- Barrow-Agee Laboratories (BAL), a Tennessee-based provider of testing services to food manufacturers, suppliers, and distributors. BAL was acquired in December 2017;
- Protegis Fire & Safety, a Kentucky-based provider of inspection, maintenance, installation, and repair services for fire and security systems and equipment. Protegis was acquired in December 2017 and has closed five add-on acquisitions;
- iPROMOTEu, a Massachusetts-based provider of product sourcing and order fulfillment services to distributors in the promotional products industry. The company was acquired in September 2018; E Source, a Colorado-based provider of predictive analytics, market research, and benchmarking data to electric, gas, and water utilities and municipalities. E Source was acquired in June 2019 and has closed three add-on acquisitions; and
- Southwest Elevator Company, a Texas-based provider of preventative maintenance, repair, and modernization services for elevators and escalators. Southwest was acquired in September 2019.
“Entering our fourth year as a firm, we are proud of the team we’ve built at ACP and the partnerships formed with our portfolio companies,” said Mr. Jones. “We look forward to the new management partnerships we will form in ACP II, where we can utilize our experience and network of operating resources to help more companies achieve their growth objectives.”
Capstone Partners was the placement agent for this fundraise and Kirkland & Ellis provided legal services.
© 2020 Private Equity Professional | February 20, 2020