DFW Capital Partners has partnered with Chief Capital to make a growth investment in consulting firm Regulatory and Quality Solutions (R&Q).
R&Q provides regulatory and product quality consulting services to medical device companies and combination product companies to assist in navigating the medical device regulatory landscape, produce a safe and effective product, and meet requirements for US and international marketing of medical devices.
Since founding in 2008 by CEO Maria Fagan and CSO Lisa Casavant, the company has advised more than 250 clients across more than 1,000 projects. R&Q is headquartered near Pittsburgh in Monroe, PA, with additional offices in Cleveland, Boston, Minneapolis, and Philadelphia.
“R&Q found great alignment with DFW and Chief Capital from a growth, leadership and culture perspective, and we are thrilled to partner with their teams,” said Ms. Fagan.
“R&Q has built an impressive team and a market-leading position with a strong culture of quality and technical expertise in meeting the increasingly complex needs of its medical device clients,” said DeVer Warner, a principal at DFW. “We are incredibly excited to partner with the R&Q team to support its continued rapid growth.”
“We are excited for the growth opportunities that this partnership brings to the R&Q team,” added Ms. Casavant.
Joining the R&Q board of directors will be Kurt Brykman, an operating partner at DFW who has extensive experience with regulatory consulting companies both as a board member and as a senior officer. He is the former president of Boston-based clinical research organization PAREXEL Consulting, CEO of London-based regulatory consultant Kinapse, and COO of Cincinnati-based clinical research organization Medpace.
“The R&Q investment exemplifies our strategy of partnering with founder-owned companies to help accelerate their growth and we are so pleased to join the R&Q team,” said Michael Shein, managing partner at Chief Capital.
Chief Capital (Chartwell Investments Entrepreneur & Founder Capital) invests both control and minority equity in niche lower middle market companies that have $10 million to $100 million in revenue and $2 million to $15 million of EBITDA. Sectors of interest include healthcare, business services, manufacturing, consumer products and services, food, and retail. Chief Capital was founded in 1992 by Michael Shein and is headquartered in New York.
DFW invests in service companies, with an emphasis on healthcare and outsourced business and industrial support services, that have revenues of $20 million to $150 million and EBITDA of $5 million to $15 million. DFW typically invests from $20 million to $75 million of capital in each of its platform acquisitions but can lead larger deals with the support of its institutional co-investors. DFW is headquartered in Teaneck, NJ, and has an additional office in Chevy Chase, MD (www.dfwcapital.com).
In March 2019, DFW held an oversubscribed first and final closing of its sixth fund, DFW Capital Partners VI LP, at the fund’s hard cap of $500 million. The investment in R&Q is the fund’s second portfolio company and follows the July 2019 buy of Vertex Group, a Richardson, TX-based provider of customer information system software and integration services to the mid-market public and investor-owned utility industry. Vertex was acquired by DFW from Oak Hill Capital and GenNx360 Capital Partners.
© 2019 Private Equity Professional | October 10, 2019
