LaSalle Capital has acquired Brown and Joseph, a commercial accounts receivable management company. The buy of Brown and Joseph is LaSalle’s eleventh platform investment out of its second fund which closed in May 2012 with $205 million of capital. NewSpring Capital co-invested in this transaction alongside LaSalle Capital.
Brown and Joseph is a provider of commercial accounts receivable management services with a focus on the insurance industry. The company principally specializes in business-to-business third-party collection services but also provides first-party collection services and insurance premium audits. Brown and Joseph is headquartered near Chicago in Itasca, IL (www.brownandjoseph.com).
“Chris Cappuccilli and Kevin Walsh built an impressive B2B collections firm that is the market leader focused on the insurance industry,” said Ryan Anthony, a Partner at LaSalle Capital. “We look forward to working with the team at Brown and Joseph to help accelerate the growth of the business.”
LaSalle Capital has previously invested in the accounts receivable management industry. In May 2007 it acquired Greensburg, IN-based Collection Associates to execute a buy-and-build strategy in the fragmented healthcare accounts receivable management industry. Collection Associates closed its first add-on acquisition in December 2007 and completed four other acquisitions over the next five years. Over the term of LaSalle’s ownership, it grew from one office and 41 employees to become one of the largest healthcare collections companies in the Midwest, with over 260 employees in five offices across seven states. In June 2012, Collection Associates (formally Receivables Management Partners) was sold to St. Louis-based Thompson Street Capital Partners. NexPhase Capital, a New York-based private equity firm, acquired Receivables Management Partners from Thompson Street in March 2017.
Brown and Joseph’s senior management team – CEO Chris Cappuccilli and President Kevin Walsh – will remain involved in the operations of the company through a transition period. “We are extremely pleased to have LaSalle Capital lead the next chapter of growth for Brown and Joseph in partnership with NewSpring,” said Mr. Cappuccilli. “We are confident we found the right stewards for the business who will continue to keep our customers’ and employees’ best interests in mind.”
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).
NewSpring Capital provided mezzanine debt for the buy of Brown and Joseph and also made an equity co-investment. “Given its unique market position and our prior experience working in this niche market, we are excited for this compelling opportunity to help Brown and Joseph continue to deliver and sustain the highest quality, innovative solutions to the insurance community, while helping to scale and grow their already high-performing business,” said Andrew Panzo, NewSpring General Partner. “We are also pleased to have found a great partner in LaSalle Capital to lead this acquisition opportunity.”
NewSpring Capital is a provider of equity and mezzanine capital across a number of private equity strategies. The firm has offices near Philadelphia in Radnor, PA; near Baltimore in Towson, MD; and in Chicago (www.newspringcapital.com).
© 2018 Private Equity Professional | April 11, 2018
