Victor Capital Partners has held a final, above target, and oversubscribed closing of Victor Capital Partners Fund II LP with $310 million of capital commitments. The fund was backed by both existing and new institutional investors.
Victor Capital invests in middle-market companies that have at least $20 million in revenues and are active in industrial manufacturing, technologies, and services; specialty consumer products and services; and business services. Fund II will target investing from $25 million to $100 million of equity capital per transaction.
Victor Capital completed its first investment for Fund II in January 2024 with the acquisition of The Coats Company, a manufacturer and distributor of Coats-branded automotive service equipment including tire changers, wheel balancers, and car lifts used by automotive repair shops, tire shops, dealerships, and auto service centers.
Coats was founded in 1948 and is headquartered near Nashville in LaVergne, Tennessee.
Victor Capital acquired Coats from publicly traded Vontier Corporation (NYSE: VNT) for $72.5 million in an all-cash transaction. At the time of the sale, Vontier projected that Coats would have 2023 revenue of approximately $110 million and EBITDA of approximately $10 million. This results in a 7.25x valuation multiple.
“There are so many great branded businesses across the lower middle market at inflection points in their lifecycles that we believe would benefit from the right strategic partner to help accelerate their growth trajectories,” said Douglas Korn, the founder and managing partner of Victor Capital. “Our mission is to identify and collaborate with exceptional management teams, forming powerful partnerships to help them build businesses that are not only bigger and more profitable but stronger, more resilient, and fundamentally more valuable. We are grateful for the confidence our investors continue to place in us to execute our investment strategy on their behalf and will continually strive to achieve shared long-term success.”
Victor Capital was founded in September 2015 and is led by Mr. Korn along with partners David Affinito and Matthew McLain. The firm is headquartered in New York City with additional offices in Boca Raton and Baltimore.
Lincoln International Private Funds Advisory was the placement agent for this fund raise and Kirkland & Ellis provided legal services.
© 2024 Private Equity Professional | October 18, 2024
