Behrman Capital has closed Behrman Capital Micross CF LP, a single asset continuation fund with $500 million in capital, as part of the sale by Behrman Capital VI LP (Fund VI) of its portfolio company Micross Components.
Micross is a supplier of microelectronic products and services used in aerospace, defense, space, medical and industrial applications.
The Orlando-headquartered company is led by CEO Vincent Buffa, the former CEO of Data Device Corporation, another Behrman Capital investment that was sold to Transdigm in 2016 for $1 billion.
The continuation fund is backed by new and returning limited partners and is anchored by Apollo Global Management and BlackRock. According to Behrman, both the general partner and limited partners of Fund VI, and Micross management rolled significant proceeds from the sale into the continuation fund.
“We are pleased that the continuation fund has secured a high-quality limited partner base, led by Apollo, and including significant support from Fund VI investors, many of whom have chosen to re-invest sale proceeds in the new continuation fund,” said Simon Lonergan, a managing partner of Behrman Capital.
Behrman’s sixth fund acquired Micross, then Corfin Industries, in February 2018. Just two years later, New Hampshire-based Corfin merged with Florida-based Micross Components, a portfolio company of Insight Equity, and the merged entity began operating as Micross. In June 2021, Micross added-on with the buy of Semi Dice, a maker of microelectronic die and wafers with operations in California and the United Kingdom; and the following month added on again with the buy of the microelectronics business of United Kingdom-based Ultra CEMS. As a result of these add-on acquisitions and organic growth, Micross’ revenues have increased by more than tenfold since being acquired by Fund VI.
In addition to acquiring Micross, the continuation fund will also provide incremental capital for new organic growth initiatives and further add-on acquisitions.
“We are excited to support Behrman and Micross management in their next phase of growth as a world-leading supplier of high-reliability microelectronics,” said Jason Scheir, a partner at Apollo. “This transaction is indicative of the solutions Apollo provides to general partners as a value-added capital partner.”
“Micross has been one of our largest and best-performing portfolio companies within Fund VI,” added Mr. Lonergan. “We are pleased to continue our longstanding partnership with Vince and the team, allowing Micross to fully exploit the attractive growth opportunities available to the company.”
“Over the past few years, Micross has delivered impressive financial performance and achieved significant strategic progress, through support of our valued customers with a comprehensive, one-stop portfolio of solutions in high-reliability electronics,” said Mr. Buffa. “We have built our market-leading position through acquisitions and have strengthened our leadership team with best-in-class talent, all under Behrman’s ownership. We very much look forward to continuing our relationship with Behrman and are excited that our expanded capital base will put us on an even stronger footing.”
The continuation fund is the second general partner-led transaction that Behrman Capital has completed. In 2012, Behrman closed Behrman Capital PEP LP (PEP), one of the first multi-asset continuation funds, with $1 billion of capital. The PEP capital was used to acquire a portion of the portfolio companies of Behrman’s third fund, Behrman Capital III LP.
Jefferies was the financial advisor to Behrman Capital, with Goodwin Procter and Ropes & Gray providing legal services. Blackstone Credit led the debt financing as part of the transaction.
Behrman Capital invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses that are active in defense and aerospace, healthcare services, and specialty manufacturing and distribution. The firm has raised more than $4 billion since its founding in 1991 and is currently investing out of its sixth fund. Behrman Capital was founded by Grant and Daryl Behrman and has offices in New York City and San Francisco.
© 2022 Private Equity Professional | March 3, 2022
