Cyprium Investment Partners has closed its fifth fund, Cyprium Investors V LP, with $445 million of committed capital. Cyprium’s earlier fund closed with $460 Million in January 2015.
Limited partners in the new fund include insurance companies, asset managers, pension funds, and family offices, many of which have been investing with Cyprium for two decades.
Cyprium provides subordinated debt, preferred and common stock as a minority investor to family, founder, and entrepreneur-owned companies for growth, shareholder dividends and buyouts, ESOPs, and minority recapitalizations.
With the advent of the COVID-19 pandemic, Cyprium anticipates a growing need from non-sponsored companies looking to refinance, respond to strategic acquisitions, and expand as the competitive landscape evolves and the economy begins a path toward recovery. The closing of Fund V gives Cyprium the capital to support the balance sheets and capital needs of lower middle-market companies as the market recovers.
Cyprium invests from $10 million to $60 million per transaction in US or Canadian-based companies that have revenues from $40 million to $500 million and more than $8 million of EBITDA.
In October 2019, Cyprium invested in Scene75, a Dayton, Ohio headquartered operator of indoor family entertainment centers featuring arcade games, laser tag, virtual reality, inflatables, go-karts, mini-golf, bowling, and full-service restaurants and bars. Scene75 has locations in Dayton, Cincinnati, Cleveland, Columbus, and Pittsburgh. Cyprium’s subordinated debt investment was used to complete the build-out of the company’s recently opened Columbus location and provide liquidity for non-management shareholders.
Earlier, in July 2019, Cyprium partnered with independent sponsor Osgood Capital to acquire Uniloy, a Tecumseh, Michigan-based provider of blow molding machines including reciprocating screw blow molders, injection blow molding presses, and accumulator head blow molding machines. The business also provides molds and tooling, aftermarket parts and service to support its products. Uniloy was acquired from publicly traded Milacron Holdings. During the first quarter of 2019, Milacron reported that quarterly revenues for its Uniloy business were $21.5 million which was about even with the year-earlier quarter.
Ropes & Gray provided legal services to Cyprium to assist it with raising Fund V. The Rope & Gray team was led by Partner Marc Biamonte and included Counsel Sabrina Glaser, and associates Jim Sullivan, Young Sik Yoon, Jennifer Geffner, and Denise Sohn.
Cyprium – with offices in Cleveland, New York, and Chicago – was formed in June 2011 when the investment team of Key Principal Partners – which was formed in 2008 – spun out from financial services firm KeyCorp to form Cyprium Investment Partners.
Private Equity Professional | April 24, 2020