Babson Capital Backs Riverside’s Buy of Midnite Air

Babson Capital Backs Riverside’s Buy of Midnite Air

Babson Capital Management has provided subordinated debt and made an equity co-investment to support The Riverside Company’s acquisition of Midnite Air, a provider of third-party transportation and logistics services.

“Babson Capital has been a highly valued partner to The Riverside Company for more than two decades, and we are pleased to partner with them again on our investment in Midnite Air,” said Riverside Partner Matt Dailey. “Once again, the Babson Capital team displayed the combination of expertise, flexibility and responsiveness that allowed us to complete this transaction in a timely manner.”

Midnite Air Corp. (MNX) is an asset-light provider of third-party transportation and logistics services to more than 1,700 customers via 18 global offices. The company’s asset-light business model relies on a global network of more than 2,500 ground couriers and 450 airlines.  MNX’s customers are largely in the life sciences, aviation services, entertainment and medical device industries. The company’s primary service offering is its Express Service, which is used to transport a variety of high value items, from transplant tissues to mission- critical maintenance parts, typically on a same-day basis. The company is based in Los Angeles (

“Babson Capital is pleased to join The Riverside Company in the Midnite Air investment,” said Mike Klofas, Managing Director and head of Babson Capital’s Mezzanine & Private Equity Group. “With its expertise in expedited shipping, strong market position and Riverside’s operating experience, Midnite Air is well-positioned for growth, and we look forward to participating in the company’s future success.”

Babson Capital had $154 billion in assets under management as of September 30, 2012 and is a member of the MassMutual Financial Group. The firm is based in Boston and Springfield, MA and Charlotte, NC and has six additional offices in the US and one in Sydney, Australia, with subsidiaries in London and Tokyo (

The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $200 million) and partners with management teams to build companies through acquisitions and value-added growth.  Since 1988, the firm has invested in 300 transactions with a total enterprise value of more than $6 billion. The firm is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-13-12

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