July 26, 2022
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Archives for July 26, 2022

Argosy Banks Sixth Fund at $422 Million

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Argosy Private Equity has held a final and above target closing of Argosy Investment Partners VI LP with $422 million in capital.

Like its earlier funds, Argosy VI will continue to make control investments of $5 million to $25 million in niche manufacturing and business-to-business service companies with $20 million to $100 million of revenue and $3 million to $10 million of EBITDA.

With a team of 22 professionals, Argosy has invested in over 125 companies since its founding in 1990 and can pursue transactions of varied sizes through its network of partners, including senior lenders, mezzanine debt providers and equity co-investors.

“Over the last 30 years, we have developed several key differentiators that will allow us to continue executing our proven strategy,” said Steve Morgenthal, the managing director at Argosy. “This includes our experienced team, a robust deal sourcing capability, a strong focus on risk mitigation, and Argosy’s VAM – our Value Acceleration Methodology. Driven by our four full-time internal operating partners, VAM enables us to help our portfolio companies’ leadership teams grow and professionalize their lower middle market businesses.”

Argosy VI has already invested in four companies with the buys of Preco, a Kansas-based maker of die-cutting and laser cutting equipment (March 2022); Global Power Products, a Georgia-based maker of transfer switches, surge suppressors, and current transformers for the commercial, industrial and residential industries (February 2022); Wittenbach Business Systems, a Maryland-based provider of cash management, electronic security, and physical security services to local and regional credit unions, financial institutions, and retail customers (April 2021); and Bionix, an Ohio-based developer and seller of medical devices and products used in ear, nasal, and wound care applications (January 2021).

“Argosy’s brand has been built upon being disciplined investors in the lower middle market and we continue to believe in the opportunity it has to offer,” said Michael Bailey, a partner at Argosy. “Argosy VI will continue to execute the strategy we have built over the past three decades, and we look forward to working with the management teams we will partner with throughout Argosy VI.”

“This is an exciting milestone for Argosy. We are grateful for the continued support of our existing investors and for the strong interest we received from new investors, which allowed us to exceed our target fund size for Argosy VI by more than 20%,” said Sarah Busch, the head of investor relations at Argosy.

Headquartered near Philadelphia in Wayne, Pennsylvania, Argosy Private Equity was founded in 1990 and is a division of Argosy Capital, an investment adviser with $2.7 billion of assets under management. Other investment units of Argosy include Argosy Real Estate Partners, Argosy Credit Partners, Argosy Strategic Partners and Argosy Healthcare Partners. All the Argosy’s funds focus on lower middle market investment strategies.

Winston & Strawn provided legal services for the raising of Argosy VI.

© 2022 Private Equity Professional | July 27, 2022

Resolute Stays Bold, Closes Fifth Fund

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Resolute Capital Partners (RCP) has closed Resolute Capital Partners Fund V LP (RCP V) with $405 million in capital commitments. The new funding includes assumed leverage through RCP’s Small Business Investment Company license.

RCP V closed above its original target and received commitments from several new limited partners and many investors from prior funds, including banks, insurance companies, funds of funds, foundations and individuals. Also investing in the RCP V are several executives and board members from prior RCP portfolio companies.

RCP invests from $5 million to $40 million per transaction in United States-based businesses with $5 million to $150 million in revenue and $1 million to $10 million of EBITDA. The firm’s investments include both subordinated debt and equity for growth capital, buyouts, acquisitions, recapitalizations and refinancing.

“We are excited to have the support of our investors and the SBA to continue doing what we do best, assisting growth-oriented small companies with capital and expertise,” said Bill Nutter, RCP’s managing partner. “RCP is committed to remaining actively engaged with thriving companies in the small business community. With our robust capital base, we will be able to help these businesses scale and create value over several years.”

RCP V has already invested in five investments including Medspa810, a multi-site owner and franchisor of aesthetic skin care services such as injectables, laser hair removal, and body contouring; Velonex Technologies, a provider of managed IT services to small and medium-sized businesses in the Southwest and West Coast regions of the United States; Rural Partners in Medicine, a provider of outsourced surgical specialists and equipment to rural hospitals; Athenix, a California-based multi-site provider of plastic surgery services; and Behavioral Innovations, a Dallas-based provider of applied behavior analysis, speech-language pathology, and occupational therapy services to patients with autism spectrum disorder with 13 centers throughout Texas.

“Our ongoing efforts to work with private equity and independent sponsors have allowed us to maintain the momentum from our prior fund as RCP V begins its investment period,” added Mr. Nutter. “While several of our recent investments have been alongside groups with which we have previously worked, we are excited to continue expanding our deal flow network.”

To date, Nashville-headquartered Resolute has invested more than $750 million in 80 companies across its five funds. The firm’s earlier fund, Resolute Capital Partners Fund IV LP, closed in 2018 with $321 million in capital.

© 2022 Private Equity Professional | July 27, 2022

Arcline Forms Signia Aerospace, Buys Mezzo Technologies

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Arcline Investment Management has formed Signia Aerospace and has acquired International Mezzo Technologies.

Signia Aerospace was formed by Arcline to consolidate its investments in Onboard Systems  International, a Washington-based provider of cargo handling equipment for civil and military helicopters (acquired from Liberty Hall Capital Partners in October 2021); Air Comm Corporation, a Colorado-based manufacturer of environmental control systems and thermal management systems used in the aerospace and defense industry (July 2021); and Enviro Systems, an Oklahoma-based maker of environmental control systems used in aviation applications (acquired from Safran S.A. in November 2021).

Today, the operations of Signia are organized into two business units: Thermal Management and Mission Equipment. The Thermal Management unit designs, manufactures and services environmental control systems and microtube heat exchangers. Key brands include ACE Thermal Systems – established through the combination of Air Comm and Enviro Systems – and now, with the close of this transaction – Mezzo Technologies. The Mission Equipment unit has more than 5,000 SKUs of cargo hooks, human external cargo (HEC) systems, weighing systems and remote equipment products sold under the Onboard Systems brand.

Baton Rouge-headquartered Mezzo Technologies is a designer and manufacturer of microtube heat exchangers used in thermal management applications in the defense, aerospace, commercial, space and racing end markets.

Mezzo designs and manufactures custom high-performance microtube heat exchangers used in the defense, aerospace, commercial, space and racing end markets. Source: Mezzo Technologies

“At Mezzo, our purpose is to provide our customers with leading-edge microtube heat exchanger solutions that serve the most critical thermal management applications,” said Kevin Kelly, the president of Mezzo. “The partnership with Signia will broaden our reach and enable us to better support our customers.”

As part of the formation of Signia, Norman Jordan, an aerospace industry veteran with 30 years of experience, has been named the chief executive officer of the company. Most recently, he was the CEO of Safran Cabin, a California-based maker of cabins for regional aircraft and business jets. Earlier, he was the CEO of California-based Zodiac Aerospace.

“The Signia brands are leaders in their respective markets and together provide a compelling value proposition to aerospace and defense OEMs and end-users as a foremost provider of high-quality electromechanical systems and specialty components,” said Mr. Jordan. “We are excited to continue expanding our portfolio of products and service capabilities to better serve our customers.”

Arcline makes control investments in companies that have from $10 million to $100 million of EBITDA and enterprise values of up to $1 billion. Sectors of interest include defense and aerospace; infrastructure services; industrial and medical technology; life sciences and specialty materials. Arcline was founded in September 2018 and has offices in San Francisco and New York.

© 2022 Private Equity Professional | July 27, 2022

New MD at Monroe Capital

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Monroe Capital has added Matt Rosenberg to its team as Managing Director, Head of Media Finance.

Mr. Rosenberg will be responsible for originating new investments across the capital structure for acquisition, growth financing, and recapitalizations for the media and entertainment industry, which includes film, television, music, talent representation, digital media, and intellectual property.

“We are very excited to add Matt to the Monroe Capital originations team,” said Tom Aronson, the vice chairman and head of originations for Monroe Capital. “Matt’s expertise and relationships will allow Monroe to continue building our media vertical which aligns with our desire to expand the sector specializations within an already robust originations platform. We are always looking to deepen our expertise in specialty niches where we can take advantage of our investing platform and create high-quality investment opportunities for our investors.”

Before joining Monroe, Mr. Rosenberg spent nine years in the New York City office of MUFG (Mitsubishi UFJ Financial Group) where he led financing efforts for the bank’s middle market media and entertainment portfolio which included film and television studios, production companies, music publishing and rights owners, and talent agencies. In 2021 he was recognized by Variety in its listing of  “Hollywood’s New Leaders in Finance.”

Before his time at MUFG, Mr. Rosenberg had summer internships at both Paramount Pictures and Twentieth Century Fox while earning his MBA from UCLA. He has his undergraduate degree from Washington University.

Monroe Capital (NASDAQ: MRCC) provides senior and junior debt financing to middle-market businesses, special situation borrowers, and private equity sponsors. Investment types include unitranche financings; cash flow, asset-based, and enterprise value-based loans; and equity co-investments.

Monroe has $12.7 billion of assets under management across a range of strategies – including direct lending, asset-based lending, specialty finance, opportunistic and structured credit, and equity. The firm was founded in 2004 and is headquartered in Chicago with additional offices in Atlanta, Boston, Los Angeles, Miami, Naples, New York, San Francisco, and Seoul.

© 2022 Private Equity Professional | July 27, 2022

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