staffing

New MainStream Capital Invests in ettain

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New MainStream Capital (NMS) has made an investment in ettain group, an IT staffing company founded in 1996 by Jeff Harris and Brian Deblitz. Both of ettain’s founders will continue in their roles at the company and will also remain significant shareholders.

“We had conversations with over 50 potential investors over the last 24 months. NMS supports our vision, mission, values and growth strategy which led us to enthusiastically choose to work with them,” said Jeff Harris, Co-Founder and CEO of ettain. “NMS has established an impressive track record in the staffing industry, and we believe their understanding of our business and the IT staffing market, will allow us to accelerate the growth of ettain.”

ettain group is an IT staffing company serving the healthcare, financial services, and retail sectors. The company has approximately $100 million in annual revenues and has more than 150 full-time employees and nearly 800 independent consultants. Ettain has offices in Charlotte (headquarters), Atlanta, Dallas, Jacksonville, Nashville, Raleigh, Washington D.C. and Winston-Salem (www.ettaingroup.com).

“ettain exemplifies the type of company that we at NMS seek to invest with – a high caliber management group with a dedicated team of employees providing blue chip clients with first rate service,” said Kevin Jordan, NMS Co-Founder and Managing Partner. “The company’s growth and success have been impressive, and we’re thrilled to have the opportunity to partner with them.”

New MainStream Capital (NMS) makes equity investments of $10 million to $50 million in companies with enterprise values less than $300 million. Sectors of interest include healthcare services, consumer products and services, and specialized business services. The firm was formed through the spin-out of a group of companies from the Goldman Sachs Merchant Banking Division in 2010. NMS is led by its founders and managing partners Martin Chavez and Kevin Jordan and has offices in New York and Dallas (www.nms-capital.com).

In connection with the transaction, NMS Operating Executive Council member Robert Livonius will serve as a board member of ettain. Mr. Livonius is currently the President of Work Force Solutions for AMN Healthcare, a large healthcare staffing company, and was previously the CEO of Medfinders and Chief Operating Officer of Spherion. Mr. Livonius is also the former Chairman of the American Staffing Association, the primary trade group representing staffing firms in the United States.

Financing for the transaction was provided by Regions Bank and Fifth Third Bank. Wells Fargo Securities served as lead financial advisor to ettain and McGuireWoods served as legal advisor to the company. CHILDS Advisory Partners served as strategic advisor to the management team of ettain. Greenberg Traurig provided legal advice to New MainStream Capital.

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-27-14

Riordan Lewis & Haden Exits CyberCoders

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Riordan Lewis & Haden has agreed to sell its portfolio company CyberCoders, an IT recruiting firm, to On Assignment, Inc. Riordan Lewis & Haden first invested in CyberCoders in 2009.

CyberCoders is a national recruiting firm that specializes in permanent placement of mid to senior-level professionals with experience in IT, engineering, healthcare and life sciences. The company is based in Irvine, CA (www.cybercoders.com).

During RLH’s term of ownership the revenue of CyberCoders has increased five-fold and EBITDA even more rapidly, entirely through organic growth. Since RLH’s investment, CyberCoders has been recognized numerous times as among the “best places to work” and the company’s founder and CEO, Heidi Golledge, was selected as an Ernst & Young 2013 Entrepreneur of the Year.

On Assignment (NYSE: ASGN) is a provider of in-demand, skilled professionals for temporary, contract-to-hire, and direct hire assignments in the IT, healthcare, and life sciences sectors. The company is based in Calabasas CA (www.onassignment.com).

Riordan, Lewis & Haden invests in high growth, lower middle market companies that have revenues from $20 million to $200 million. 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 (www.rlhequity.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-3-13

Lake Capital Partners Exits Addison Group

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Addison Group, a professional staffing firm and a portfolio company of Lake Capital Partners, has entered into an agreement to be acquired by Trilantic Capital Partners. The management team of Addison Group is participating in this transaction alongside Trilantic. Lake Capital first invested in Addison Group in May 2006.

Addison Group provides specialized temporary and permanent placement of finance and accounting, information technology, and clerical personnel. Addison’s wholly owned subsidiary, inSync Staffing (www.insyncstaffing.com), specializes in providing staff augmentation services to the managed service provider market. Addison Group was founded in 1999 and is headquartered in Chicago and has offices in Boston, Houston, and Schaumburg, IL (www.addisongroup.com).

“We are thrilled to begin this partnership with Addison Group. Through its exceptional client and candidate service and its focus on hard-to-find skill-sets, management has successfully built Addison into a highly regarded professional staffing business. Their superior top line growth is a testament to their dedication to operational excellence. We plan to provide substantial additional strategic capital to fuel Addison’s organic growth and support future acquisitions,” said Jon Mattson, Partner at Trilantic.

Trilantic Capital Partners makes control and significant minority investments in North America and European companies. Sectors of interests include consumer, energy, financial and business services. Trilantic was formed in 2009 by the former principals of Lehman Brothers Merchant Banking. Trilantic currently manages two institutional private equity funds with total capital commitments of $5.6 billion. The firm is based in New York (www.trilantic.com).

“Lake Capital was pleased to work closely with management to build Addison Group, a world-class, client-focused staffing enterprise,” said Lake Capital principal Terence Graunke. “This initiative represents well our firm’s mission to partner with entrepreneurs and management teams to build leading service-based companies through strategically-directed organic and acquisition-enhanced growth. We thank and congratulate the Addison team and Trilantic Capital Partners, and wish them continuing success.”

Lake Capital invests in service-based enterprises. Service sectors of specific interest include marketing, finance, operations and infrastructure, healthcare services, specialty consumer, technology, and business process outsourcing. The firm currently manages more than $1 billion in equity commitments and is based in Chicago (www.lakecapital.com).

“We look forward to Trilantic’s strategic and financial support as we continue to execute on our growth strategy, which includes expanding nationally through both organic initiatives and executing tuck-in acquisitions,” said Thomas Moran, Chief Executive Officer of Addison Group. “We are very excited about this new chapter for Addison Group.”
William Blair & Company acted as the exclusive financial advisor to Addison Group.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-30-13

Highlander Partners Exits Martin, Fletcher

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Highlander Partners has sold its portfolio company, Martin, Fletcher, to Parallon Business Solutions, a subsidiary of HCA Holdings.

Martin, Fletcher is a provider of locum tenens and permanent placement healthcare staffing services. It has served over 2,000 hospitals and clinics nationwide since its founding in 1999. The company is headquartered in Irving, TX (www.martinfletcher.com).

Highlander made its investment in Martin, Fletcher in 2005, when the company was focused predominantly on permanent placements of physicians and nurses.  Since acquisition, Highlander oversaw the firm’s successful expansion into locum tenens that began in 2008 and continued through the downturn in the economy.

Parallon Business Solutions was formed by HCA in June 2011 to provide business services to the healthcare industry.  Services include group purchasing, staffing management, supply chain, project management, revenue cycle and other business processes. The company is based in Franklin, TN (www.parallon.net).

HCA is a provider of healthcare services comprised of locally managed facilities that includes about 163 hospitals and 110 freestanding surgery centers in 20 states and England and employing approximately 199,000 people. The company was founded in 1968 and is based in Nashville (www.hcahealthcare.com).

Highlander Partners makes investments in middle market businesses in targeted industries in which the principals of the firm have significant operating and investing experience. Sectors of interest include healthcare, basic manufacturing, food, and building materials. The firm has over $400 million in capital under management and is based in Dallas, TX (www.highlander-partners.com).

“We have supported Martin, Fletcher’s growth plans through the economic downturn and we are very pleased to see the exceptional growth achieved by the company in the locum tenens sector.  We believe that Martin, Fletcher’s combination with Parallon will bring tremendous benefits to both organizations and will allow Martin, Fletcher to expand the scope of its operations,” said Alex Guiva, Partner at Highlander and former Board Member of Martin, Fletcher.

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

Taglich Brothers Private Equity Acquires American Partners

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BG Staffing, a temporary staffing company and a portfolio company of the Taglich Brothers Private Equity Group, has acquired of substantially all of the assets of American Partners, an information technology staffing company.

American Partners is a national niche staffing firm specializing in providing experienced, highly skilled, and highly sought after information technology resources. The company is headquartered in Pawtucket, RI (www.americanpartnersinc.com).

“We are pleased to add American Partners to our platform.  American Partners strengthens and expands our existing information technology operations,” said L. Allen Baker, Jr., BG Staffing’s President and Chief Executive Officer.

BG Staffing is a temporary staffing platform that has integrated several regional and national brands.  The company provides staffing services to a variety of industries through its information technology, light industrial and multi-family divisions.  BG Staffing is headquartered in Dallas (www.bgstaffing.com).

The Taglich Brothers Private Equity Group makes equity investments of $3 million to $15 million in companies with revenues of $15 million to $150 million and EBITDAs of $5 million to $15 million.  Sectors of interest include manufacturing, consumer products and business services. The group is the alternative investment arm of Taglich Brothers, a provider of services to microcap companies seeking to raise capital through private placements including secured notes, mezzanine financing, and preferred and common equity.  Taglich Brothers Private Equity Group is based in New York (www.taglichpe.com).

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

Ares Management Invests in Insight Global

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Insight Global, a provider of information technology staffing services and a portfolio company of Harvest Partners, has received an investment by Ares Management. The transaction is expected to be completed in the fourth quarter of 2012.

“We believe Insight Global’s dedication to serving its clients will allow the company to continue expanding its footprint within the IT sector, and we are excited to partner with Harvest and such an outstanding management team,” said Matt Cwiertnia, Senior Partner at Ares Management.

Insight Global provides long term, short term, and temp-to-permanent technical staffing services throughout the United States and Canada. Since its founding in 2001, the company has grown to be recognized as one of the premier staffing companies in the country with 28 office locations in major metro markets. In 2011, Insight Global was recognized by Staffing Industry Analysts as the 8th largest IT temporary staffing firm in the U.S. and the 20th largest firm in the U.S. across all staffing sectors. The company is based in Atlanta (www.insightglobal.net).

Ares Management has $54 billion in capital under management and invests in private equity, leveraged loans, high-yield bonds, distressed debt and private debt. The firm has approximately 450 employees and is headquartered in Los Angeles, CA with offices in New York, London Chicago, and Atlanta (www.aresmgmt.com).

“We appreciate all of the effort by the Insight Global team since our original investment in 2010. Going forward, we are excited to partner with Ares and management by making a new investment to support future growth,” said Jay Wilkins, Managing Director at Harvest Partners.

Harvest Partners invests in management buyouts and growth financings. Sectors of interest include business and industrial services, manufacturing and distribution, healthcare, midstream energy, and consumer products and retail sectors. The firm was founded in 1981 and is based in New York (www.harvpart.com).

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