Incline Equity Partners has acquired Brown & Joseph, a provider of commercial accounts receivable management services, from LaSalle Capital which first invested in the company in March 2018.
Brown & Joseph specializes in business-to-business third-party collection services while also providing first-party collections and insurance premium audits. The company is led by CEO Mark Schabel and is headquartered near Chicago in Itasca, IL (www.brownandjoseph.com).
“Working with Incline provides the opportunity to continue to achieve the meaningful growth we have experienced so far while expanding our capabilities to serve existing and new customers,” said Mr. Schabel. “Incline brings the resources and knowledge needed to tackle strategic initiatives like adding new service lines for existing customers, developing an approach to enter new markets and pursuing add-on acquisitions.”
“This is a sector we know well from an earlier investment we made in Receivable Management Services Corporation, a global supplier of recovery services,” said Leon Rubinov, a senior partner with Incline. “We plan to leverage our prior experience to support further growth at the company. We are excited to back an impressive management team that has a strong track record of success.”
Incline Equity Partners invests in lower middle-market growth companies that have enterprise values of $25 million to $300 million. Sectors of interest include value-added distribution, specialized light manufacturing, and business services. Incline was formed in 2011 and is based in Pittsburgh (www.inclineequity.com).
LaSalle Capital makes control investments of $10 million to $20 million in companies with revenues from $20 million to $100 million and EBITDA greater than $3 million. Sectors of specific interest include food and beverage and technology-enabled business services. LaSalle Capital is based in Chicago (www.lasallecapitalgroup.com).
According to a source familiar with this transaction, Twin Brook Capital Partners, the middle market direct lending subsidiary of Angelo Gordon, served as administrative agent on financing to support Incline’s buy of Brown & Joseph. Twin Brook targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million up to $150 million. Twin Brook also makes opportunistic investments in second lien, mezzanine, and equity co-investments. Earlier this month, Angelo Gordon closed AG Direct Lending Fund III LP with $2.75 billion in equity commitments. The new fund, which is managed by Twin Brook, closed above its $2 billion target and is the firm’s largest direct lending fund to date.
© 2019 Private Equity Professional | June 28, 2019