Cyprium Invests in Chief

Cyprium Investment Partners, which specializes in non-control investments, has closed a preferred equity and subordinated debt investment in Chief Enterprises.

Chief is a value-added distributor of electrical connectors, electro-mechanical components, and assemblies used in automotive, agriculture, specialty vehicle, powersport, and industrial applications. The company is also the North American distribution partner of Robert Bosch GmbH electrical connectors which are sold to Tier 1 and Tier 2 automotive suppliers. Chief was founded in 1991 by its CEO Andy Gabelman and is headquartered near Chicago in Elmhurst, Illinois.

Through this transaction with Cyprium, members of Chief’s senior management team have become shareholders of the company and Mr. Gabelman remains the principal shareholder of Chief.

“Cyprium has a tremendous amount of experience in our markets and will be able to help us navigate many opportunities coming our way,” said Mr. Gabelman. “Cyprium’s approach to non-control partnership was the perfect match for our new and expanded ownership structure.”

“Cyprium is proud to invest with Andy and his team,” said Mike Conaton, a partner at Cyprium. “We are excited about supporting the company as it grows with its world-class vendors and customers.”

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. The firm invests from $10 million to $60 million per transaction in North American-based companies that have revenues from $40 million to $500 million and more than $8 million of EBITDA. In April 2020, Cyprium closed its fifth fund, Cyprium Investors V LP, with $445 million of committed capital.

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.

Private Equity Professional | June 19, 2020

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