L Squared Capital Partners has made a growth capital investment in Virtium, a provider of industrial memory and embedded solid-state drive storage products.
Virtium is a supplier of industrial-grade memory and storage products used by OEMs in networking, communications, industrial, in-flight entertainment, transportation, gaming and mobile monitoring system applications. Customers include Alcatel-Lucent, Boeing, DRS Technologies, Emerson, Freescale, General Dynamics, General Electric, IBM, Intel and Radisys. Virtium has experienced significant revenue growth over the past few years as a result of increasing demand for highly customized memory and storage products. The company was founded in 1997 and is headquartered near Los Angeles in Rancho Santa Margarita, CA (www.virtium.com).
“This investment, from a highly experienced investor in the industrial technology sector, will be used to enhance Virtium’s product portfolio and strengthen our application engineering and solid-state drive firmware development teams,” said Phu Hoang, CEO and co-founder of Virtium. “L Squared’s partners are highly regarded for their sound investment strategies and proven approach to value creation. Their approach aligns perfectly with Virtium’s performance-oriented culture.”
L Squared Capital Partners invests from $15 million to $75 million of equity in technology-enabled services, industrial technology, and education companies. Targeted investments will have revenue of $10 million to $100 million and EBITDA of $3 million to $20 million. The firm was founded in 2014 and has offices in Newport Beach and Chicago (www.lsquaredcap.com).
On the debt side of this transaction, Monroe Capital (www.monroecap.com) was the sole lead arranger and administrative agent on a $36 million unitranche credit facility to support the acquisition.
© 2015 PEPD • Private Equity’s Leading News Magazine • 8-5-15