Business Services

Sageview Invests in NAM

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Sageview Capital has made a growth equity investment in National Arbitration and Mediation (NAM), a provider of alternative dispute resolution services.

Alternative dispute resolution (ADR) is a timely and cost-effective alternative to litigation, allowing parties to resolve their disputes without a trial. More than 75% of NAM-administered cases result in the resolution of all outstanding issues.

NAM’s services include arbitration, mediation, online and offline case management, trial preparation services, mock jury trials, and dispute resolution training. The company’s clientele is diverse and no one entity represents more than 2% of NAM’s revenues. NAM works with more than 8,000 commercial entities, including more than 50% of Fortune 100 companies and maintains a nationwide panel of nearly 2,000 former judges and practicing specialists. In 2016, NAM was named Best ADR firm in the United States by the National Law Journal’s Annual Reader Rankings Survey. The company was founded in 1992 and is headquartered on Long Island in Garden City, NY (www.namadr.com).

“NAM is exceptionally well positioned as a market leader within the rapidly expanding ADR field,” said Scott Stuart, partner at Sageview Capital. “Sageview is focused on providing growth capital to leading companies with demonstrated track records of success and compelling market opportunities. We look forward to partnering with NAM and supporting its tremendous management team as they expand the company’s core capabilities and accelerate growth.”

“We see increasingly high demand for NAM’s dispute resolution services and the business is growing at a record pace, particularly with respect to complex commercial, construction and employment matters,” said Roy Israel, President and CEO of NAM. “Sageview is an ideal investment partner at this stage of our evolution, and we look forward to expanding our team and building out a broad sales and marketing platform to help accelerate the growth of our business and extend our market leadership position.”

Sageview Capital provides growth capital of $20 million to $75 million to small and mid-sized companies in the technology, business services, and financial services sectors. The firm was founded in 2006 and is led by Ned Gilhuly and Scott Stuart, former partners of Kohlberg Kravis Roberts (KKR) and Dean Nelson, former head of KKR Capstone. Sageview Capital has offices in Greenwich, CT and Palo Alto, CA (www.sageviewcapital.com).

© 2017 Private Equity Professional | January 23, 2017

LNC Partners Buys OutSolve

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LNC Partners has acquired OutSolve, a provider of affirmative action planning and compliance services to federal contractors. Five Points Capital co-invested alongside LNC Partners.

OutSolve’s services are used by government contractors to meet the requirements of Executive Order 11246, the Vietnam Era Veteran Readjustment Assistance Act (VEVRAA), and Section 503 of the Rehabilitation Act of 1973, among other regulations. Services include developing Office of Federal Contract Compliance Programs (OFCCP) compliant affirmative action plans, offering OFCCP audit support, and creating EEO-1 reports that comply with the requirements of the US Equal Employment Opportunity Commission. OutSolve was founded in 1998 and is based near New Orleans in Metairie, LA (www.outsolve.com).

LNC Partners invests from $4 million to $20 million in companies that have at least $10 million of revenue and at least $2 million of cash flow. Sectors of interest include business and information services; financial and insurance services; healthcare services; and niche manufacturing. LNC is a licensed Small Business Investment Company and has over $235 million of capital under management. The firm is based in Reston, VA (www.lnc-partners.com).

Five Points Capital invests equity and subordinated debt in lower middle market buyout, acquisition, growth, and recapitalization transactions as a control investor on a standalone basis or as a co-investor with other financial sponsors.  Sectors of interest include business, healthcare and industrial services; niche manufacturing; value-added distribution; and education and training. The firm is headquartered in Winston-Salem, NC (www.fivepointscapital.com).

© 2016 Private Equity Professional • 11-17-16

Silver Oak Sells Direct Travel to ABRY

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Silver Oak Services Partners has completed the sale of its equity interest in Direct Travel to ABRY Partners. Silver Oak made its original investment in Direct Travel in September 2011.

Direct Travel is a provider of corporate travel management services to mid- to large-sized corporate accounts. Services include booking and managing employee air travel, transportation and accommodations. Direct Travel is led by Ed Adams, CEO and has over 900 employees in 39 offices in 16 states. The company is headquartered in Denver (www.dt.com).

During Silver Oak’s term of ownership, Direct Travel completed 12 acquisitions which expanded the company nationally. To take advantage of its larger scale, Silver Oak worked with the management team to renegotiate supplier contracts, expand cross-selling services, and move toward a common IT platform.

“Silver Oak has been an excellent partner over the past four years,” said Mr. Adams. “The leadership team at Silver Oak provided us with tremendous advice, support and mentoring throughout our partnership. Under Silver Oak’s stewardship, Direct Travel enjoyed substantial growth.”

Silver Oak makes control investments of $10 million to $30 million in companies with revenues from $15 million to $150 million and EBITDAs from $3 million to $20 million. Sectors of interest include business, healthcare, and consumer services.  Silver Oak is based in the Chicago suburb of Evanston (www.silveroaksp.com).

ABRY Partners, the buyer of Direct Travel, invests in the media, communications, and business and information sectors. The firm is currently managing $4.3 billion of total capital and investing out of a $1.9 billion private equity fund, $950 million senior equity fund and a $1.5 billion senior debt fund. ABRY was founded in 1989 and is headquartered in Boston (www.abry.com).

William Blair & Company (www.williamblair.com) was the financial advisor to both Direct Travel and Silver Oak.

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-4-15

McCarthy Exits Benaissance

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McCarthy Capital has sold its equity interest in Benaissance, a provider of outsourced business services, to Evolution1, a wholly-owned subsidiary of publicly traded WEX. McCarthy Capital first invested in Benaissance in 2008.

Benaissance provides health insurance premium billing and payment collection services and other outsourced services for insurance carriers, private exchanges, state health and human services and benefit administrators. The two major product lines of Benaissance include ExchangePoint, which provides financial management services to public and private health insurance exchanges for employers and individuals, and COBRApoint, which provides financial management, benefits administration and payment processing for individual subscribers. Benaissance was founded in 2006 and is headquartered in Fargo, ND (www.benaissance.com).

“This sale represents the culmination of a long-term and successful partnership between McCarthy Capital and Benaissance,” said Patrick Duffy, President and Managing Partner at McCarthy Capital. “This investment has highlighted McCarthy Capital’s commitment to growing businesses in partnership with management teams retaining a significant ownership position, and we’re excited to watch Benaissance in its next stage of growth with WEX and Evolution1.” Over the past few years Benaissance and Evolution1 have built a working relationship and already share a number of mutual partners and customers.

Evolution1 provides healthcare and reimbursement account services – including Defined Contribution, HSAs, HRAs, FSAs, VEBAs, PRAs, Wellness, and Transit Plans – to more than 75,000 employers and more than 9,000,000 consumers. Customers include health plans, third-party administrators, financial institutions, and software providers.  Evolution1, headquartered near Minneapolis in Edina, MN (www.evolution1.com), is a subsidiary of WEX (NYSE:WEX), a provider of payment processing and information management services headquartered in South Portland, ME (www.wexinc.com).

“This transaction closes a very successful partnership with McCarthy Capital and opens a new and exciting chapter in Benaissance’s growth story,” said John Jenkins, founder and CEO of Benaissance. “Benaissance could not have established its position as an industry leader in financial management solutions for America’s health benefits without the amazing support of McCarthy Capital.”

McCarthy Capital was founded by Michael McCarthy in 1986 and has invested in over fifty companies, including Cabela’s, Peak 10, Guild Mortgage Company, and Vornado Air. Today, the firm has approximately $1 billion in capital under management and is based in Omaha with an additional office in Boston (www.mccarthycapital.com).

McCarthy Capital has been very active lately. Earlier this month, the firm held a closing of McCarthy Capital Fund VI, LP at $213 million. The firm’s earlier fund, McCarthy Capital Fund V, had a final close in June 2011 with $158 million in capital.

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-20-15

Norwest Equity Partners Acquires Marco

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Norwest Equity Partners (NEP) has acquired Marco, a provider of business technology services to small and medium-sized business. Marco has been owned for the last 28 years by its employees through an employee stock ownership plan.

Marco provides planning, design, implementation and support for copiers/printers, business IT services, managed services, hosted/cloud services, carrier services, phone systems, document management and audio/video systems. The company is organized under three business divisions: Copier/Printer, IT, and Carrier Services. Marco serves more than 25,000 customers through 920 employees in 42 locations across Minnesota, Wisconsin, North Dakota, South Dakota, Iowa, Illinois, and Nebraska. Marco is led by its CEO Jeff Gau.  The company was founded in 1973 by Gary Marsden and Dave Marquardt as a small typewriter shop in St. Cloud, MN which is still the company’s headquarters (www.marconet.com).

In the past three years, Marco has acquired 15 companies and added 430 employees to its workforce. The company has plans to build a 30,000 square foot building adjacent to its St. Cloud corporate headquarters next year to support its continued growth.  NEP plans to grow Marco through a combination of initiatives including developing new customer channels, expanding geographically via acquisitions, and developing new products.

“Our firm has extensive experience working with companies like Marco, and we are excited to partner with Jeff Gau and his management team to help them continue growing and building into an even stronger company,” said Tim DeVries, NEP Managing General Partner. “Marco’s leadership, culture and customer-centric approach were key investment drivers for us. We also appreciate our shared Minnesota roots and long history in our respective businesses. Our partnership with Marco is a great fit.”

Norwest Equity Partners makes equity investments of $30 million to $150 million in companies operating in the agriculture, applied technology, business services, consumer products and services, distribution, diversified industrials, and healthcare sectors. In April 2015, NEP closed Norwest Equity Partners X, LP, a $1.6 billion fund and Norwest Mezzanine Partners IV, LP, an $800 million fund formed by NEP’s affiliated mezzanine investment firm, Norwest Mezzanine Partners. Norwest Equity Partners is headquartered in Minneapolis (www.nep.com).

Financing was provided by Antares Capital (www.antarescapital.com), Ally Corporate Finance (www.ally.com/corporate-finance), BMO Capital Markets (www.bmocm.com), and Norwest Mezzanine Partners (www.nmp.com).

Minneapolis headquartered investment bank Chartwell Capital Solutions (www.chartwellfa.com) served as financial advisor to Marco.

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-3-15

Silver Lake to Acquire Cast & Crew

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Silver Lake has signed an agreement to acquire Cast & Crew Entertainment Services, a provider of payroll and production accounting services to the entertainment industry, from ZM Capital (ZMC) and other investors.  Cast & Crew’s senior management will remain in their current roles and continue as equity partners under the new ownership structure.

Cast & Crew Entertainment Services is a provider of payroll and other business process outsourcing services to the film, television, live entertainment and commercial production markets in North America.  Production companies use the company’s services to manage payroll processing and related regulatory filings; production accounting software; workers’ compensation insurance coverage and claims administration; residuals processing; procurement and purchasing services; labor relations; and production incentives guidance and reporting. Cast & Crew is headquartered in Burbank, CA and has field operations in New York, Albuquerque, Atlanta, Baton Rouge, New Orleans, Detroit, Philadelphia and Wilmington. Canadian offices are located in Toronto and Vancouver.  The company was founded in 1976 (www.castandcrew.com).

A ZMC-led consortium, including Veronis Suhler Stevenson, Emigrant Capital and other ZMC limited partners acquired the company in 2012. During the two-and-a-half year term of ownership, Cast & Crew achieved significant growth.  ZMC and management develop strategies to increase revenues with existing clients, develop new clients, expand into new geographies, and develop and launch new products (such as Cast & Crew Financial Services and Cast & Crew Open Health).  ZMC and management also began a set of initiatives to reduce costs and improve customer satisfaction metrics.  These initiatives were coupled with a large investment in Cast & Crew’s technology platform.

“We take great satisfaction in Cast & Crew’s dynamic growth in recent years, driven by an outstanding management team and a talented group of employees.  We feel fortunate that we had the opportunity to work with the company during this phase of its growth and remain excited about Cast & Crew’s future prospects,” said ZMC Partner Jordan Turkewitz.

ZMC invests in media companies in which the partnership’s capital resources, industry relationships and operational experience can enhance growth and value. The firm is based in New York (www.zelnickmedia.com).

“Silver Lake’s technology expertise and entertainment industry understanding position them as the ideal strategic partner for our company,” said Eric Belcher, President and CEO of Cast & Crew. “We undoubtedly will benefit from Silver Lake’s involvement as we accelerate our investment in technology and as we bring new client-centric digital solutions to market.”

Silver Lake invests in technology and technology-enabled industries.  The firm has over 100 investment professionals located in New York, Menlo Park, San Francisco, London, Hong Kong, and Tokyo and has $26 billion in assets under management and committed capital (www.silverlake.com).

“We admire what Cast & Crew’s excellent management team has achieved already with ZMC’s support,” said Silver Lake Managing Director Joe Osnoss.‎ “Technology’s impact on the global media and entertainment sectors will create many new opportunities for Cast & Crew and its clients in the years ahead, and we look forward to helping the company achieve its next phase of growth.”

RBC Capital Markets, Credit Suisse, Deutsche Bank Securities and Societe Generale are providing debt financing for the transaction.  Cast & Crew was advised in this transaction by Moelis & Company, Morgan Stanley & Co. and Sidley Austin. Silver Lake was advised by Kirkland & Ellis.

© 2015 PEPD • Private Equity’s Leading News Magazine • 6-30-15

Pine Tree Acquires C&R Compliance

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Crossbridge Compliance, a portfolio company of Pine Tree Equity, has acquired C&R Compliance.  This is the first add-on acquisition completed by Crossbridge Compliance since being acquired by Pine Tree in November 2014.

C&R is a regional provider of safety and training services required to meet safety regulations in the manufacturing and pulp and paper industries. The company was founded in 2007 and is headquartered northwest of Atlanta in Rome, GA (www.crcompliance.com).

Crossbridge Compliance is a provider of safety and training services such as auditing, consulting, and inspection that are required to meet safety regulations in the oil and gas pipeline and railcar industries. The company is headquartered east of Dallas in Longview, TX (www.crossbridgecompliance.com).

Pine Tree Equity invests in companies with revenues of $10 million to $50 million and EBITDAs of $2 million to $6 million. Sectors of interest include business, consumer and financial services; consumer products; franchisors and franchisees; and niche manufacturing.  The firm is based in Miami (www.pinetreeequity.com).

Pine Tree intends to continue pursuing add-on acquisitions of competitive and complementary safety and training businesses.

C&R marks Pine Tree Equity’s 9th investment in the industrial services industry and 28th investment since the firm was founded in 2007.

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-9-15

Svoboda Capital Acquires Cogniserv

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Databank IMX, a portfolio company of Svoboda Capital Partners, has acquired Cogniserv, a document scanning company.  The transaction is the fifth add-on acquisition for Databank since Svoboda first invested in the company in January 2011.

Cogniserv is a document scanning services company, focused on document imaging, workflow, data capture and enterprise content management. The company serves a variety of industries including state and local government, energy and healthcare.  Cogniserv was founded by Brian Rathe and Prabhu Karunakaran and is headquartered in Dallas with an additional office in Houston (cogniserv.com).

Post transaction, Mr. Rathe and Mr. Karunakaran will join the management team at Databank.  “Our team is very excited to join the DataBank family and we look forward to working together to combine and leverage our unique strengths across a larger organization,” said Mr. Rathe.  “Cogniserv customers will benefit from an expanded solution offering of business process automation services including digital mailroom and application process outsourcing.”

DataBank is a service provider of outsourced imaging and information services, including document scanning, indexing, physical and electronic document storage, and software to manage information. The company operates a network of BPO imaging production centers with locations in Maryland, Massachusetts, Connecticut, Indiana, Texas, Louisiana, Florida, California, Minnesota and Nebraska. Across this network, DataBank serves clients in several verticals, including Healthcare, Education, Oil/Gas, and Government sectors, and also provides Shared Services (accounts payable processing, HR/pension records) across various industries. DataBank is headquartered northeast of Washington, DC in Beltsville, MD (www.databankimx.com).

Svoboda Capital Partners invests from $10 million to $20 million in business services, value-added distribution, and consumer products companies that have revenues from $10 million to $100 million and EBITDAs from $3 million to $15 million. The firm was founded in 1998 and has over $300 million of capital under management.  Svoboda Capital is based in Chicago (www.svoco.com).

2014 PEPD • Private Equity’s Leading News Magazine • 7-18-14

Topspin Exits Hart Systems

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Zebra Technologies Corporation has acquired Hart Systems, a provider of physical inventory management services and a portfolio company of Topspin Partners LBO, for approximately $94 million in cash. Topspin acquired Hart Systems in November 2008.

Hart Systems is a provider of inventory counting equipment and services to retailers, primarily in the US and Canada. The company owns a fleet of mobile scanning devices that its customers use to count store inventories. The company also provides the supporting infrastructure and various reporting capabilities as part of its service. Hart System’s customers include companies in a range of retail segments including apparel, grocery, consumer electronics, convenience and automotive. Hart Systems is based in Hauppauge, NY (www.hartsystems.com).

Topspin LBO makes control investments in profitable and established lower middle-market businesses. Sectors of interest include consumer products, business services, food & beverage, retail, media, niche manufacturing and security. The firm is based near New York City in Roslyn Heights, NY (www.topspinlbo.com).

Zebra Technologies (NASDAQ: ZBRA) is a manufacturer of thermal bar code label and receipt printers, RFID smart label printer/encoders, card and kiosk printers. The company is headquartered near Chicago in Vernon Hills, IL (www.zebra.com).

“As the recognized leader in self-managed inventory solutions, Hart gives retailers better tools to optimize in-store inventories in an environment of increasingly complex global supply chains,” said Anders Gustafsson, Zebra’s chief executive officer. “It is an excellent strategic fit for Zebra. Hart’s solutions add high-value software and data analytics capabilities to Zebra, and increase our presence within the “Internet of Things” ecosystem. The business expands the portfolio of products, solutions and services Zebra provides to current customers, and gives us important relationships with new ones.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-20-13

Odyssey Completes One Call Care Management Exit

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Odyssey Investment Partners has completed the previously announced sale of its portfolio company One Call Care Management to Apax Partners.

One Call is a provider of cost containment services to the workers’ compensation industry. Services include diagnostics, physical therapy, post-discharge and in-home care management, transportation, dental programs and other specialty services. In December 2009, Odyssey acquired One Call Medical which was merged with MSC Care Management in August 2012 to form One Call Care Management. The company is based in Jacksonville, FL (www.onecallcm.com).

“We set out to undertake a business transformation with One Call by expanding the service offering and building a scalable, high growth enterprise focused on delivering value for clients,” said Jeffrey McKibben, a Managing Principal at Odyssey. “We are extremely proud to have been a part of this chapter for the company and wish CEO Joe Delaney and the entire One Call team continued success under their new ownership.”

Odyssey Investment Partners is a middle-market private equity firm with more than $3 billion under management. Odyssey makes control investments primarily in established middle-market companies in a variety of industries, including industrial manufacturing; business, financial and healthcare services; aerospace products; and localized and route-based service businesses. The firm has offices in New York and Woodland Hills, CA (www.odysseyinvestment.com).

Apax Partners invests in the technology & telecom; retail & consumer; media; healthcare; and financial & business services sectors. The firm has offices in London and New York (www.apax.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-2-13

Kinderhook and Mansa Capital Acquire Wellness Corporation

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E4 Health, a portfolio company of Kinderhook Industries and Mansa Capital, has acquired Wellness Corporation. This is the third add-on acquisition completed by E4 Health since being acquired by Kinderhook in October 2011. Mansa Capital invested in E4 Health in February 2013.

“This is an exciting opportunity to bring together two companies that will complement each other to provide an exceptional platform to meet the growing demands of our customers and the market to bend the cost curve of healthcare,” said Chris Michalik, Managing Director at Kinderhook Industries.

Wellness Corporation is a provider of employee assistance programs and post-secondary education counseling and coaching. These services include employee assistance programs, student and graduate student assistance programs, organizational development services, professional development training, wellness and work/life programs. The company is headquartered in Shrewsbury, MA (www.wellnesscorp.com).

E4 Health is a provider of employee assistance programs (EAP) and behavioral health risk management programs. EAPs offer assistance to help employees cope with the stresses that stem from both their personal and work lives. EAPs provide assistance to employees experiencing a range of concerns including: depression, stress management, conflict resolution and substance abuse issues, as well as providing them with access to elder care resources, child care openings, legal resources, and wellness coaching. E4 Health was founded by EAP veterans Bill Mulcahy and Cindy Sheriff in partnership with Kinderhook Industries in October 2011. The company is based in Dallas (www.e4healthinc.com).

“Wellness is recognized as a leader in employee and student assistance and shares our commitment to quality outcomes,” said Bill Mulcahy, CEO of E4 Health. “In addition to strengthening our core EAP offerings, Wellness has strong relationships throughout the post-secondary education market that complement the services we offer through our subsidiary Student Resources. We look forward to collaborating with the team at Wellness to create an innovative solution that supports our goals for creating greater long-term value for our customers.”

Kinderhook Industries makes control investments in companies with transaction values of $10 million to $75 million in which the firm can achieve financial, operational and growth improvements. The firm pursues private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations and existing small capitalization companies lacking institutional support. The firm, founded in 2003, has $770 million of committed capital and is based in New York (www.kinderhook.com).

Mansa Capital invests in companies active in the health care services and health care technology sectors that have enterprise values up to $150 million. Mansa focuses on companies as they prepare for expansion, acquisition, privatization or IPO. The firm has offices in Boston, Miami, and Dallas (www.mansaequity.com).

“The addition of Wellness Corporation, with its strong cultural values and long-standing reputation for superior EAP service, reinforces E4’s unique position as the market leading EAP provider. Wellness is a great addition to E4’s outcome based strategy,” said Ruben King-Shaw, Jr., Managing Director of Mansa Capital.

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-28-13

HKW Acquires Peterson Land Consulting

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Contract Land Staff, a provider of land management and right-of-way consulting services and a portfolio company of Hammond, Kennedy, Whitney & Company, has expanded into Canada with the acquisition of Peterson Land Consulting.

Peterson Land Consulting (PLC) specializes in land and right-of-way services for electrical generation, transmission and distribution acquisition, as well as for pipelines, substations, compressor stations and lease site projects. The company was founded in 1995 and is based in Edmonton (www.petld.com).

Contract Land Staff (CLS) is a provider of a combination of land and property management services such as right-of-way acquisition, training, staffing, and land and real estate administration services. The company serves pipeline, utility, electric transmission, rail, public sector, solar and wind generation, and telecommunications clients nationwide. CLS was founded in 1985 and is headquartered in Sugar Land, TX with regional offices in Austin, TX; Denver, CO; Lake Charles, LA; McMurray, PA; San Antonio, TX; Victoria, TX; Waterloo, IA; Westerville, OH; and Williston, ND (www.contractlandstaff.com).

“We are very pleased to announce this acquisition and partnership with PLC which further demonstrates CLS’s ongoing investment and commitment to the right-of-way Industry, and continues CLS’s growth internationally, enabling us to serve our international as well as domestic clients,” said Brent Leftwich, President and CEO. “We are excited to leverage PLC’s electric experience and paired with our extensive electric and pipeline experience, this will allow us to expand geographically, while continuing to provide quality services in the US and Canada.”

Hammond, Kennedy, Whitney & Company invests in companies with revenues between $20 million and $200 million and EBITDAs between $2 million and $20 million. Over the past 29 years, HKW has completed 41 platform management buyouts of small middle-market companies throughout North America as well as 45 add-on acquisitions. The firm is headquartered in Indianapolis with an additional office in New York (www.hkwinc.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 2-26-13

The Riverside Company Acquires CorporateRewards

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The Riverside Company has invested in GiveAnything.com (dba CorporateRewards), a facilitator of incentive, recognition and wellness programs.

CorporateRewards provides its clients a software platform that allows them to administer, manage and track their employee incentive programs.  Using a universal gift card reward, participants in CorporateRewards’ programs can select from hundreds of retailers and millions of products.  Corporate Rewards has more than 150 clients globally, including many Fortune 500 companies.  The company is based in New York (www.corporaterewards.com).

“CorporateRewards has a long track record of growth thanks to its exceptional service and compelling value proposition,” said Riverside Managing Partner Loren Schlachet. “We expect to build on that by investing in additional resources to help them serve the market even better.”

Employee incentive programs have become increasingly popular, as research has proven that non-monetary rewards can engage employees and agents and drive improved performance more effectively than cash. Programs like those that CorporateRewards provides are particularly effective for encouraging wellness program participation and other employee engagement efforts.

“CorporateRewards is addressing critical customer needs,” said Riverside Principal Alan Peyrat. “And it’s doing so with the best technology possible. Its cloud-based system provides real-time data and is robust and flexible. It’s an impressive package.”

Working with Messrs. Schlachet and Peyrat on the transaction for Riverside were Assistant Vice President Brad Resnick and Associate Grady McConnell.  Origination Principal Jim Butterfield sourced the transaction for Riverside.

Deerpath Capital Management (www.deerpathcapital.com) provided debt financing for the transaction and Jones Day and Deloitte advised Riverside.  MHT Partners, a Dallas-based investment bank (www.mhtpartners.com), served as the exclusive financial advisor to Corporate Rewards.

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 (www.riversidecompany.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-8-13

Gridiron Capital Acquires Hinda

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TharpeRobbins Company, a portfolio company of Gridiron Capital, has acquired Hinda, Inc., a provider of customer incentive programs. “We are excited to support TharpeRobbins’ acquisition of Hinda and believe that TharpeRobbins is the perfect company to continue expanding Hinda’s legacy that has been built over four decades. The combination of the two companies creates a powerful player in the incentives industry,” said Thomas Burger Jr., Managing Partner, Gridiron Capital.

Hinda is a provider of incentive programs used to reward customer loyalty, encourage top sales performance, influence employee behavior and motivate company dealers and distributors. The company is based in Chicago (www.hinda.com).

“The collective strength of our companies and our commitment to the incentive industry will provide clients with the best possible resources when implementing reward and recognition programs,” said Dave Peer, President of Hinda. “With TharpeRobbins’ expertise in the employee arena and Hinda’s expertise in the consumer, sales and channel programs, the products and services offered by each company naturally complement one another. It is an ideal fit.”

TharpeRobbins provides managed recognition and rewards services. The company offers consultative expertise to help organizations design human resources programs that drive higher levels of employee engagement and fulfillment. Its programs include products ranging from personalized jewelry to fine art, electronics, sports and outdoor merchandise. The company is located in Statesville, NC (www.tharperobbins.com). Gridiron Capital acquired TharpeRobbins from Saugatuck Capital in April 2010.

“This strategic merger combines the strengths of two companies built on innovation, customer service and flexibility,” said Brett Tharpe, Chief Executive Officer of TharpeRobbins. “Together we will strengthen our consultative services, diversify our awards mix and create new solutions to help our customers achieve higher levels of sales, customer loyalty, employee engagement and retention in an increasingly competitive environment.”

Gridiron Capital invests in middle-market manufacturing, service and specialty consumer companies in the United States and Canada. The firm is based in New Canaan, CT (www.gridironcapital.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-25-12

Baird Capital Partners Acquires Auctions In Motion

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American Auto Auction Group, a portfolio company of Baird Capital Partners, has acquired Auctions In Motion, a provider of dealer consignment auction services.

American Auto Auction Group (AAAG) was established by Baird Capital Partners in early 2010 in partnership with industry veterans to execute an acquisition platform strategy in the whole car auction market. Auto auctions create a transaction marketplace for finance companies, fleets, wholesalers, independent dealers, and franchise dealers to sell and purchase vehicles. AAAG is based in Charleston, SC (www.americanautoauctiongroup.com).

Auctions In Motion is a dealer consignment auction offering traditional auction services. The company is based in Westlake Village, CA (www.auctionsinmotion.com). This is the sixth add-on acquisition completed for AAAG since its founding in 2010. In addition to Auctions In Motion, AAAG has acquired Badger State (Fond Du Lac, WI); Charleston Auto Auction (Moncks Corner, SC); Mid-South Auto Auction (Pearl, MS); Texas Lone Star Auto Auction (Carrollton, TX); and Your Auction (Tampa, FL).

“The acquisition of Auctions In Motion is another step toward becoming a national full-service dealer-centric remarketing platform,” said Tom Costello, a Principal of Baird Capital Partners. ”We continue to be very interested in partnering with other independent auctions as we build AAAG’s market share across the country.”

Baird Capital Partners invests in lower middle-market companies in the manufactured products, healthcare and business services sectors. The firm invests from $15 million to $35 million in companies with enterprise values of $25 to $125 million and EBITDAs greater than $5 million. Baird Capital Partners was founded in 1989 and is based in Chicago, IL (www.bairdcapitalpartners.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-11-12

Kelso & Company Acquires Swank Audio Visuals

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Kelso & Company has acquired Swank Audio Visuals, a provider of audiovisual and event technology services. Swank will be merged with Kelso’s existing portfolio company PSAV Presentation Services.

“PSAV and Swank are industry leaders with impressive histories of growth, innovation, and best-in-class customer service,” said Steve Dutton, Vice President at Kelso. “With PSAV and Swank as one combined entity, hoteliers will benefit from a single source of audiovisual and technology support for every size hotel and event around the world.”

Kelso is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has made investments in over 115 companies in a broad range of industry sectors. The firm is currently investing its eighth investment partnership, Kelso Investment Associates VIII, L.P., with $5.1 billion of committed capital. The firm is based in New York, NY (www.kelso.com).

Barclays and Macquarie Capital served as advisors to Kelso, and are arranging financing for the transaction.

Swank Audio Visuals provides audiovisual and event technology services within the hotel, resort, meetings and conference center industries. The majority of Swank’s services are provided via relationships whereby the company acts as the preferred outsource service provider to more than 375 hotels and resorts throughout the United States, Canada and the Middle East. The company is based in St. Louis (www.swankav.com).

“Swank is very excited about this partnership and the wealth of benefits it will provide our team members, hotel partners and customers, as well as the event technology industry as a whole,” said Greg Diekemper, President and CEO of Swank Audio Visuals. “We feel this merger will provide our hotel partners and customers with greater access to innovative new technology, as well as a deeper pool of highly trained, experienced personnel to operate it.”

PSAV Presentation Services is a provider of audiovisual equipment and services to the meeting and event industries. The company is based in Schaumburg, IL (www.psav.com).

“The entire team at PSAV is thrilled about Kelso’s purchase of Swank Audio Visuals and the impending merger of the two companies,” said Mike McIlwain, President and CEO of PSAV. “This opportunity provides a multitude of advantages for the industry. Combining our companies’ strengths will give meeting planners and producers unparalleled access to advanced audiovisual and event technology support throughout the United States and the world.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-11-12

Riordan Lewis & Haden Exits Creative Circle

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Riordan Lewis & Haden (RLH) has sold its portfolio company, Creative Circle, a specialized staffing agency, to Morgan Stanley Global Private Equity. RLH acquired Creative Circle in 2009 and during its ownership the company achieved a three-fold increase in revenue and an even more rapid rise in EBITDA, entirely through organic growth.

This transaction provided a very favorable financial outcome for RLH’s investors while affording the Creative Circle management team the opportunity to continue their global growth strategy in partnership with a new investor. The sale of Creative Circle is the second liquidity event of 2012 for RLH and the second exit from its RLH Investors II fund.

Creative Circle is a specialized staffing agency representing advertising, marketing, graphic communication, and interactive professionals. Customers include advertising agencies, marketing firms, and enterprise clients. Creative Circle is headquartered in Los Angeles and operates in 12 states through 14 offices nationwide (www.creativecircle.com).

Riordan, Lewis & Haden invests in high growth, lower middle market companies. Sectors of interest include business services, healthcare, and government services. The firm currently manages over $600 million of assets and is actively seeking new portfolio companies. Riordan, Lewis & Haden is based in Los Angeles, CA (www.rlhequity.com).

Morgan Stanley Global Private Equity, part of Morgan Stanley Investment Management, makes private equity and equity-related investments of $75 million to $150 million in companies with enterprise values of $100 million to $1 billion. To date, Morgan Stanley Global Private Equity and its affiliated funds have invested over $9 billion of equity across a spectrum of industries. The firm is based in New York (www.morganstanley.com/privateequity).

This transaction represents the twelfth investment for Morgan Stanley Capital Partners V, the most recent fund raised by Morgan Stanley Global Private Equity, and the fourth in the business services sector.

“Creative Circle is the premier creative staffing agency in North America. The rapid expansion of interactive and digital media has created a tremendous demand for highly qualified creative talent as well as a unique opportunity for Creative Circle to build on its strong record of business growth,” said Aaron Sack, Managing Director of Morgan Stanley Global Private Equity.

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-5-12

Aurora Capital Group Acquires Market Track

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Aurora Capital Group today announced that it has acquired Market Track, a provider of promotional tracking services, from Monitor Clipper Partners which acquired the company in June 2008.  Key leadership, including CEO Wayne Mincey and President Paul Salay, will remain in their respective roles.

Market Track is a provider of subscription-based, data driven services that enable retailers, manufacturers and brokers to analyze their promotional and pricing initiatives to make more informed decisions.  Market Track currently serves over 450 retailers and manufacturers across all classes of trade and product categories, providing insight into how trade promotions are impacting consumers’ purchase decisions. Market Track was created in January 2004 through the consolidation of the two largest retail print ad tracking suppliers in the United States (Market Advantage and Advertising Processing). Market Track is based in Chicago, IL (www.markettrack.com)

“We have been extremely impressed with Market Track’s performance over the last several years, including contract value retention rates that have averaged close to 100% and substantial organic growth through the consistent addition of new blue-chip customers,” said Josh Klinefelter, Partner of Aurora. “Additionally, our independent due diligence revealed Net Promoter Scores for Market Track that were at the very top of the market research industry and rivaled some of the best companies in the world.  We have the utmost confidence in Market Track’s management team and look forward to supporting them with the financial, strategic and operational resources we make available to our partners.”

Barclays Private Credit Partners led the debt financing while other current capital partners, Northwestern Mutual Capital and Golub Capital, will continue to support Market Track.

Gibson, Dunn & Crutcher acted as legal advisor to Aurora.  Jefferies & Company acted as financial advisor to Monitor Clipper Partners and Market Track and Weil, Gotshal & Manges acted as their legal advisor.

Aurora Capital focuses principally on control-investments in middle-market industrial, manufacturing and service oriented businesses.  The firm has $2 billion of capital under management and is located in Los Angeles, CA (www.auroracap.com).

Monitor Clipper Partners pursues management buyouts and late stage growth equity investments and seeks transactions in which it can invest between $10 million and $70 million of its capital.  Sectors of interest include natural/organic foods, specialty retail, health care services, gaming, logistics, mortgage technology, marketing services, financial services, and metals. The firm was founded in 1998 and has invested approximately $1.7 billion in equity since its formation. Monitor Clipper Partners is based in Cambridge, MA ((www.monitorclipper.com).

PEPD 8-13-12