Firms Set Targets on Industries, Establish Criteria for Investment

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With billions of dollars at their collective disposal, private equity firms arguably represent the most important investment vehicle in business today. Seldom will a week go by without word of some private equity deal. Actually, private equity is a broad term and covers a variety of financing arrangements. The firms themselves are a diverse bunch with their own specialties and preferences. The Business Journal has identified more than two dozen locally based players some more forthcoming about their operations than others. What follows are the basics, as gathered by David Nusbaum, Kate Berry, Aarthi Sivaraman, Sarah Filus and Bonnie Lee.



AIG Altaris Health Partners LP



Founded:

2003


Headquarters:

New York/Los Angeles


Assets Under Management:

$350 million


Fund:

AIG Altaris Health Partners LP ($350 million)


Investments in 2005:

None


Investments in 2004:

None


Minimum Investment:

$10 million


Preferred Investment Size:

$10 million-$50 million


Recent Fundings:

N/A


Preferred Industry:

Health care


Preferred Financing Stage:

Buyout/late-stage growth equity


Sources of Capital:

Institutional, high net worth individuals


Top Executive:

Todd G. French, managing director


Summary:

AIG Altaris Health Partners is a member of AIG Global Investment Group. The fund’s primary interest is health care companies with strong intellectual property and value-investing characteristics. Its managing directors are Stephen E. Farinelli, Todd G. French and Michael J. Kluger.



Ares Management LLC



Founded:

1997


Headquarters:

Los Angeles


Assets Under Management:

$7.6 billion (all assets)


Funds:

Ares Corporate Opportunities Fund, others


Investments in 2005:

Four (private equity only)


Investments in 2004:

Seven (private equity only)


Minimum Investment:

$10 million (private equity only)


Preferred Investment Size:

$25 million-$150 million (private equity only)


Recent Fundings:

National Bedding Co., Anchor Blue Retail Group Inc., AmeriQual Group LLC (private equity only)


Preferred Industry:

None


Preferred Financing Stage:

Middle-market growth


Sources of Capital:

Investors


Top Executives:

Antony Ressler, Seth Brufsky, David Kaplan, John Kissick, Bennett Rosenthal, David Sachs


Summary:

Specializes in both the private equity and leveraged finance markets. The firm provides flexible junior capital to middle market companies. Prior to 1990, founding members Ressler and Kissick worked at Drexel Burnham Lambert Inc. Ressler was senior vice president in the high yield bond department, while Kissick served as senior executive vice president and later head of the corporate finance department.



Aurora Capital Group LP





Founded:

1991

Headquarters:
Los Angeles


Assets Under Management:

$1.5 billion


Funds:

Not disclosed


Investments in 2005:

None


Investments in 2004:

Three


Minimum Investment:

$50 million


Preferred Investment Size:

$125 million


Recent Fundings:

K & F; Industries Holdings Inc., Douglas Dynamic Holdings Inc.


Preferred Industries:

Manufacturing, distribution and service


Preferred Financing Stage:

Acquisitions, growth equity


Sources of Capital:

Pension funds, university endowments, banks, foundations


Top Executives:

Partners Gerald L. Parsky, Richard R. Crowell, John T. Mapes, Mark C. Hardy, Richard K. Roeder


Summary:

Invests in middle market companies with unique, defensible market positions. The firm does not participate in day-to-day operations of portfolio companies. A typical investment will last three to seven years, depending on market conditions. Parsky, one of the Aurora’s founding partners, is chairman of the University of California Board of Regents.



Bison Capital Asset Management LLC



Founded:

2002


Headquarters:

Santa Monica


Assets Under Management:

$310 million


Funds:

Bison Capital Structured Equity Partners LLC ($110 million), Bison Capital Equity Partners II LP ($200 million)


Investments in 2005:

One


Investments in 2004:

One


Minimum Investment:

$10 million


Preferred Investment Size:

$10 million-$30 million


Recent Fundings:

Metagenics Inc., Twin Med LLC, Helinet Aviation Services LLC, IMPCO Technologies Inc., GTS Holdings Inc.


Preferred Industries:

Basic industries with low technology risk


Preferred Financing Stage:

Growth and acquisition financing, balance sheet restructuring


Sources of Capital:

Institutional, high net worth individuals


Top Executive:

James K. Hunt, managing partner


Summary:

Bison Capital was co-founded in 2002 by Hunt and Douglas B. Trussler. Hunt is a former SunAmerica executive with a track record of more than $19 billion in investments. Trussler hails from Windward Capital Partners, where he participated in more than $750 million of private equity and mezzanine investing from 1995 to 2000. The fund seeks non-control investments in companies that have a founding owner or management teams that will retain significant ownership stakes. Bison is a secondary investor that will invest in various debt and equity structures at the mezzanine level.



Brentwood Associates



Founded:

1972


Headquarters:

Los Angeles


Assets Under Management:

$750 million


Funds:

Brentwood Associates IV LP ($161 million), Brentwood Associates Buyout Fund LP ($140 million), Brentwood Associates Buyout Fund II LP ($240 million), Bretnwood Associates Private Equity III LP ($530 million)


Investments in 2005:

Four


Investments in 2004:

Two


Minimum Investment:

$15 million


Preferred Investment Size:

$25 million-$75 million


Recent Fundings:

C.C. Filson Co., Pacific Island Restaurants Inc., Exhale Enterprises Inc., Spectrum Clubs


Preferred Industries:

Consumer products and services, direct marketing, health, wellness and conscious living, restaurants, specialty retail


Preferred Financing Stage:

Growth investments


Sources of Capital:

Pension funds, insurance companies, private and public endowments, wealthy individuals


Top Executive:

William M. Barnum Jr., general partner


Summary:

Brentwood Associates targets smaller companies. The firm’s private equity arm was co-founded by Barnum in 1984. Brentwood has invested in recapitalizations, management buyouts and growth-equity investments. Its portfolio includes the specialty action-sports apparel retailer Zumiez Inc., the novelty toy and party supply marketer Oriental Trading Co. Inc., and Pacific Island Restaurants, the sole franchisee of Pizza Hut, Taco Bell, A & W; and Long John Silver’s restaurants in Hawaii and sole franchisee of Pizza Hut in Guam and Saipan.



Caltius Capital Management



Founded:

1997


Headquarters

: Los Angeles


Assets Under Management:

$525 million


Funds:

Caltius Partners III LP ($300 million), Caltius Mezzanine Partners II LP ($172 million), Caltius Private Equity Partners I LP ($53 million)


Investments in 2005:

Five


Investments in 2004:

Five


Minimum Investment:

$5 million


Preferred Investment Size:

$5 million-$35 million


Recent Fundings:

Tristar Electronics, Select Rehabilitation, Zenith Administrators, Radiant Research, Scientech


Preferred Industries:

Light manufacturing, consumer products, business services, consumer services


Preferred Financing Stage:

Growth, buyout


Sources of Capital:

Financial institutions, pension funds, fund-of-funds, high net worth individuals


Top Executive:

James B. Upchurch, president and chief executive


Summary:

Caltius is structured as two independent teams: One makes mezzanine debt investments of $5 million to $35 million to support expansion, buyouts, acquisitions, and recapitalizations; and the other makes private equity investments of between $5 million and $20 million to fund management-led buyouts, late-stage growth financings, leveraged recapitalizations, corporate divestitures and acquisitions. Before founding Caltius in 1997, Upchurch was president of U.S. Bancorp Libra and its predecessor, Libra Investments. Upchurch also managed an investment portfolio of $4 billion at Columbia Savings and Loan Association.



Celerity Partners



Founded:

1995


Headquarters:

Los Angeles


Assets Under Management:

$200 million


Funds:

Celerity Partners SBIC LP ($72 million), Celerity Partners III LP ($72 million), Celerity Partners II LP ($40 million), Celerity Partners I LP ($8 million)


Investments in 2005:

None

Investments in 2004: One


Minimum Investment:

$2 million


Preferred Investment Size:

$3 million-

$4 million


Recent Fundings:

Ortho Organizers, Peer 1 Networks, New Release, Orion Defense

Systems, O Premium Waters


Preferred Industries:

IT products & services, manufacturing services, consumer products & services


Preferred Financing Stage:

Later stage/buyout


Sources of Capital:

Institutions, high net worth individuals, pension funds


Top Executive:

Stephen Adamson, managing partner


Summary:

The fund looks to invest in companies that show long-term growth in the manufacturing and services industries. Prospects must have a defensible market position, proven earnings and sustainable cash flow. The firm has invested in more than 40 companies since it was founded in 1995. Company co-founder and Managing Partner Mark Benham recently joined the board of one of Celerity Partners’ incorporated companies, Peer 1 Network Enterprises Inc., a provider of Internet infrastructure.



Centre Partners Management LLC



Founded:

1986


Headquarters:

New York/Los Angeles


Assets Under Management:

$1.5 billion


Funds:

Center Partners IV LP $780 million


Investments in 2005:

Two


Investments in 2004:

Two


Minimum Investment:

$8 million


Preferred Investment Size:

$20 million-$75 million


Recent Fundings:

Garden Fresh Restaurant Corp., Uno Chicago Grill, Quickie Manufacturing, Ross Aviation, Bumble Bee Seafoods


Preferred Industries:

Consumer, food, industrial products and services, health care, retail and restaurants


Preferred Financing Stage:

Management buyouts, corporate spinouts, growth capital, leveraged buildups, corporate partnerships


Sources of Capital:

Institutional investors, previously financed Centre executives


Top Executive:

Robert Bergmann


Summary:

Since its inception in 1986, Centre Partners has invested over $3 billion in 80 companies across various industries, forming partnerships with their management teams who also hold a meaningful equity stake in the business. The firm invests in successful independent companies, in divisions or subsidiaries of larger companies, and in build-up companies. Centre contributes a network of experienced managers, IT services and technology expertise.



Century Park Capital Partners



Founded:

1999


Headquarters:

Los Angeles


Assets Under Management:

$375 million


Funds:

Century Park Capital Partners LP ($110 million), Century Park Capital Partners II LP ($265 million)


Investments in 2005:

One


Investments in 2004:

Four


Minimum Investment:

$10 million


Preferred Investment Size:

$10 million-$35 million


Recent Fundings:

N/A


Preferred Industries:

Plastics/specialty packaging, medical components and supplies, specialty chemicals


Preferred Financing Stage:

Late stage


Sources of Capital:

Institutional limited partnerships


Top Executives:

Partners Martin Jelenko, Martin Sarafa, Charles Roellig and Paul Wolf


Summary:

Century Park Capital invests in companies by teaming up with owners and executives, who the firm sees as partners. Century Park’s role is to provide strategic guidance, capital and financial acumen. The company can invest in a minority or a controlling interest, which gives the fund a degree of flexibility in choosing target investments.



Clarity Partners LP



Founded:

2000


Headquarters:

Los Angeles


Assets Under Management:

$814 million


Funds:

Clarity Partners LP


Investments in 2005:

Seven


Investments in 2004:

None


Minimum Investment:

$10 million


Preferred Investment Size:

$25 million-$75 million


Recent Fundings:

CaseStack, Westec Interactive, Telepacific Communications, Naylor Publications, Crescent Entertainment, Liberty International, IPWireless


Preferred Industries:

Communications, media and business services


Preferred Financing Stage:

Leveraged buyout, late-stage equity growth capital


Sources of Capital:

Not disclosed


Top Executives:

David Lee, Barry Porter, Stephen P. Rader, R. Rudy Reinfrank, partners


Summary:

Clarity provides assistance with technology, marketing, operating and financing issues. Clarity’s co-founder, David Lee, has established Centers for Advanced Networking at the California Institute of Technology in Pasadena and at the National Chiao Tung University in Taiwan, through a grant from the Lee Family Foundation. Lee was a co-founder of Global Crossing in 1997, and served as president and chief operating officer until early 2000. He started his professional career with Arthur Andersen & Co. in Los Angeles.



Freeman Spogli & Co.



Founded:

1983


Headquarters:

Los Angeles


Assets Under Management:

$1.29 billion


Funds:

FS Equity Partners III LP ($100 million), FS Equity Partners IV LP ($190 million), FS Equity Partners V LP ($1 billion)


Investments in 2005:

Two


Investments in 2004:

Two


Minimum Investment:

$30 million


Preferred Investment Size:

$ 100 million


Recent Fundings:

Winebow Inc., NEW Customer Service Cos., Gregg Appliances Inc., Bright Now Dental Inc.


Preferred Industries:

Retail stores, direct marketing, catalogs, distribution


Preferred Financing Stage:

Buyouts

Sources of Capital: Pension funds, foundations, financial institutions and funds-of-funds.


Top Executive:

Bradford M. Freeman


Summary:

Freeman Spogli invests exclusively with management in retail, direct marketing and distribution companies. Since its founding in 1983, the firm has invested $2.2 billion in 38 portfolio companies. (Founder Bradford Freeman is a friend and supporter of President Bush.) Freeman Spogli helps guide its portfolio companies, but does not generally participate in their day-to-day operations. The company has eight principals with extensive industry experience. It also funds an institute for international studies at Stanford University.



Fulcrum Capital Group



Founded:

1977


Headquarters:

Culver City


Assets Under Management:

$40 million


Funds:

Fulcrum Capital Partners LP, Fulcrum Capital Management LLC


Investments in 2005:

One


Investments in 2004:

One


Minimum Investment:

$1 million


Preferred Investment Size:

$3 million


Recent Fundings:

Cinema Screen Media, Se & #324;or Snacks


Preferred Industries:

Light manufacturing, services, communication


Preferred Financing Stage:

Later-stage growth


Sources of Capital:

Industrial investors


Top Executive:

Brian E. Argrett, chief executive


Summary:

Fulcrum provides acquisition and expansion capital to companies that are focused on emerging domestic markets in Southern California. The firm looks for small but growing companies that are often owned or managed by minority entrepreneurs and operating in urban areas. The firm aims to achieve a “double bottom line” success for both its investors and the communities served by the companies. Its investments to date include Se & #324;or Snacks, a La Mirada-based snack company targeting the Hispanic market in the U.S. Fulcrum Capital Management is a private equity investment manager for Merrill Lynch & Co.; Fulcrum Capital Partners is a traditional private equity fund. The company also has a venture capital fund, Fulcrum Venture Capital Corp.



Gilbert Global Equity Partners



Founded:

1997


Headquarters:

Beverly Hills/New York/Connecticut


Assets Under Management:

$1.2 billion


Funds:

Gilbert Global Equity Partners ($1.2 billion)


Investments in 2005:

None


Investments in 2004:

Two


Minimum Investment:

$10 million


Preferred Investment Size:

$20 million-$120 million


Recent Fundings:

CPM Holdings, True

Temper Sports


Preferred Industries:

Diversified


Preferred Financing Stage:

Buyouts, growth equity

Sources of Capital: Corporations, pension funds, university endowments, insurance companies, financial institutions


Top Executive:

Steven J. Gilbert


Summary:

The investment team left Soros Capital L.P., the principal private equity vehicle of the Quantum Group of Funds. The firm takes controlling or strategic minority positions in its portfolio companies. Investments can be centered on a management team, company privatizations or industry consolidations. Gilbert Global also invests in businesses that produce large amounts of cash to repay debt, and in turnaround situations with distressed, underperforming or overleveraged companies. The firm has an alliance with the Capital Group of Cos., whose Capital Group International unit provides analysis to evaluate potential investments, and with Frank Russsell Co., which provides research as well as back-office, accounting and reporting support.



Gores Group


(formerly Gores Technology Group)


Founded:

1992


Headquarters:

Los Angeles


Assets Under Management:

$700 million


Funds:

Gores Capital Partners ($400 million)


Investments in 2005

: Five


Investments in 2004:

Four


Minimum Investment:

None


Preferred Investment Size:

$25 million


Recent Fundings:

Somero Enterprises, National Public Markets, Global Tel Link, V-Span, Pierce Technology Services, Omni Tech, Wire One Technology, Real Software, Proxicom, Anker Systems, Micron PC Computers, VeriFone Inc., Learning Co., Aprisma


Preferred Industries:

Technology, telecommunications, general industrial, health care, media


Preferred Financing Stage:

Buyout


Sources of Capital:

Discretionary private equity fund and founder’s capital


Top Executive:

Alec E. Gores, chairman


Summary:

Gores Group has invested in 38 companies worldwide, focused on the technology and telecommunications sector. The firm often buys distressed tech properties from large corporate owners. Gores made news with its tech-wreck turnarounds such as Learning Co., purchased from Mattel Inc. and VeriFone Inc., a Hewlett-Packard Co. cast-off that was recapitalized with an investment by Chicago’s GTCR Golder Rauner LLC in 2002. Gores teamed up with brother Tom in an unsuccessful attempt to purchase telecom services firm Global Crossing Ltd. out of bankruptcy. In July, a Gores Group unit purchased AT & T; Corp.’s National Public Markets division, which provides pay phone services in airports and prisons.



Hancock Park Associates



Founded:

1986


Headquarters:

Los Angeles


Assets Under Management:

$400 million


Funds:

Hancock Park Capital II LP ($150 million), Hancock Park Capital III LP ($250 million)


Investments in 2005:

Four


Investments in 2004:

Four


Minimum Investment:

$5 million


Preferred Investment Size:

$5 million-$15 million


Recent Fundings:

American Furniture Co., Resco Products Inc., Compass Aerospace Corp., Borga Inc.


Preferred Industries:

Manufacturing and specialty retail


Preferred Financing Stage:

Buyouts


Sources of Capital:

Endowments, pension funds, fund-of-funds, high net worth individuals


Top Executive:

Michael Fourticq Sr., managing partner


Summary:

Hancock Park tends to invest in small to mid-sized companies that are often ignored by larger groups. Fourticq was a partner at L.A.-based Brentwood Associates before leaving to start Hancock. The company’s holdings include Omni Fitness, Classic Party Rentals, Resco Products Inc. and Saleen Inc., the Irvine-based race car manufacturer that has a partnership with Ford Motor Co. to make new versions of the Ford Mustang and Focus.



Kline Hawkes & Co.



Founded:

1994


Headquarters:

Los Angeles


Assets Under Management:

$300 million


Funds:

Kline Hawkes California ($48 million), Kline Hawkes California SBIC ($64 million), Kline Hawkes Pacific ($155 million)


Investments in 2005:

Four


Investments in 2004:

Five


Minimum Investment:

$3 million


Preferred Investment Size:

$5 million


Recent Fundings:

New Bridge College, Rayne Corp., Advanced Products Corp.


Preferred Industries:

Information technology, industrial manufacturing, education, environmental services, health care


Preferred Financing Stage:

Growth capital


Sources of Capital:

Pension funds, institutional investors


Top Executive:

Frank R. Kline, managing partner


Summary:

The company invests in expansion-stage opportunities and change-of-control transactions in the middle market. It places emphasis on management teams, overall market size and rapid growth situations in California, but also considers investing in other states. Target companies will typically have revenues above $2 million and be at or near profitability.



Leonard Green & Partners LP



Founded:

1989


Headquarters:

Los Angeles


Assets Under Management:

$3.7 billion


Funds:

Green Equity Investors IV LP ($1.85 billion), Green Equity III LP ($1.24 billion), Green Equity Investors II LP ($310 million), Green Equity Investors LP ($220 million), GCP California Fund LP ($50 million)


Investments in 2005:

Five


Investments in 2004:

Two


Minimum Investment:

$50 million


Preferred Investment Size:

$100 million-$200 million


Recent Fundings:

Tire Rack Inc., Neiman Marcus Group Inc., Claim Jumper Restaurants LLC


Preferred Industries:

Broad range of industries, consumer-oriented businesses


Preferred Financing Stage:

Established buyouts


Sources of Capital:

Institutional investors


Top Executives:

John G. Danhakl, Peter J. Nolan and Jonathan D. Sokoloff, managing partners


Summary:

Founder Leonard Green, who died in 2002, was a pioneer in leveraged buyouts, with a career dating back to the late 1960s. Green engineered the buyouts of Budget Rent-A-Car Corp., Kash n’ Karry Food Stores Inc. and Purex Industries. The firm invests in established market leaders and avoids startups and technology companies. It usually takes a board seat to direct financial and strategic development, but does not get involved in day-to-day operations. Since 1989, it has invested in 37 companies with aggregate value of about $20 billion. Its GPC California Fund LP is a partnership to invest in California companies and underserved markets.



Lovell Minnick Partners LLC



Founded:

1999


Headquarters:

Rolling Hills Estates


Assets Under Management:

$250 million


Funds:

Lovell Minnick Equity Partners LP ($105 million), Lovell Minnick Equity Partners II LP ($100 million), Progress Lovell Minnick Ventures LLC ($40 million)


Investments in 2005:

Two


Investments in 2004:

Two


Minimum Investment:

$5 million


Preferred Investment Size:

$20 million


Recent Fundings:

Duff & Phelps Holdings, ALPS Financial Services Inc.


Preferred Industry:

Financial services


Preferred Financing Stage:

Buyout, growth/expansion


Sources of Capital:

Institutional limited partnerships, co-investors


Top Executive:

Jeffrey D. Lovell, managing director


Summary:

The firm is a successor to the private equity businesses of Putnam Lovell Capital Partners and Putnam Lovell NBF Securities, two affiliates of the National Bank of Canada. The company also manages a venture capital portfolio for the California Public Employees Retirement System’s Managing Development Program. Lovell co-founded Putnam Lovell Securities, now Putnam Lovell NBF, in 1987. Before that, he was an executive at SEI Investments.



Nogales Investors



Founded:

2001


Headquarters:

Los Angeles


Assets Under Management:

$100 million


Fund:

Nogales Investors Fund I LP ($100 million)


Investments in 2005:

Three


Investments in 2004:

Two


Minimum Investment:

$5 million


Preferred Investment Size:

$10 million-$15 million


Recent Fundings:

Chick’s Sporting Goods Inc., Alfa Leisure Inc., Video King


Preferred Industries:

Manufacturing, retail, business services and distribution


Preferred Financing Stage:

Mature, cash generating companies with a proven track record and an established operating history


Sources of Capital:

Financial institutions


Top Executive:

Luis Nogales, managing partner


Summary:

Nogales, former president of Univision and president and chief executive of United Press International, is very involved in the strategic direction of the portfolio companies, which include Alpha Leisure and G.I. Joe’s. The firm looks for companies in low-technology sectors that have opportunities to grow and identifiable exit strategies. Nogales is a board member of Edison International, KB Home, Arbitron Inc., the Getty Trust and the Mayo Clinic Trust. The partners of Nogales Investors have significant experience on boards of small, medium and Fortune 500 companies.





Norwest Equity Partners


Founded:
1961


Headquarters:

Minneapolis/Los Angeles


Assets Under Management:

$800 million (private equity only)


Funds:

Norwest Equity Partners VIII ($800 million)


Investments in 2005:

Nine


Investments in 2004:

11


Minimum Investment:

$20 million


Preferred Investment Size:

$20 million-$80 million


Recent Fundings:

Glenmac Inc., Optical Components Inc., Nitral Urbana, KT Industries, Sweepster/FFC LLC, Bekins Logistic


Preferred Industries:

Manufacturing, distribution, business services, consumer products, health care services


Preferred Financing Stage:

Management buyout, recapitalization, growth financing


Source of Capital:

Wells Fargo & Co., primary limited partner


Top Executive:

Steven Burge, partner


Summary:

Not involved in day-to-day operations but does serve on boards. If a company wants to finance growth through internal expansion or acquisition, Norwest provides additional equity. Average investment period is between three and seven years. Before joining Norwest, Burge, general partner in the Los Angeles office, co-managed Wells Fargo Equity Capital Inc., a $100 million equity fund affiliated with Wells Fargo & Co. He has also spent time as a managing general partner of Wedbush Capital Partners.



Oaktree Capital Management LLC



Founded:

1995


Headquarters:

Los Angeles


Assets Under Management:

$3.7 billion (private equity)


Funds:

TCW Special Credits Fund V-The Principal Fund ($401 million), OCM Principal Opportunities Fund LP ($625 million), OCM Principal Opportunities Fund II LP ($1.27 billion), OCM Principal Opportunities Fund III LP ($1.4 billion)


Investments in 2005:

Four


Investments in 2004:

12


Minimum Investment:

$25 million-$50 million


Preferred Investment Size:

$75 million-$150 million


Recent Fundings:

Genco Shipping & Trading, Pegasus Aviation Finance, Cannery Casino Resort, Crimson Exploration, HydroChem Industrial Services


Preferred Industries:

Shipping, casinos, media/entertainment, energy, manufacturing


Preferred Financing Stage:

Distress for control, buyouts


Sources of Capital:

Pension funds, endowments, foundations, high net worth individuals


Top Executives:

Howard Marks, chairman; Bruce Karsh, president; Stephen Kaplan and Ronald Beck, co-portfolio managers


Summary:

Founded by seven of its principals, including Marks, Karsh and Kaplan, all veterans of Trust Co. of the West. Oaktree is active in the high-yield bonds, convertible, and distressed debt markets, as well as making principal investments and buying distressed real estate. Its 10 principals, along with over 50 key employees, own 90 percent of the company. A typical investment strategy is to buy debt of distressed companies and assert some level of control in a restructuring. Past investments include the Loews Cineplex, Landmark Theatres and Regal Theatres chains, as well as its more recent funding of an art house chain run by the Sundance Group. It also purchased several European units of Sara Lee Corp. that make women’s apparel and undergarments.



Omninet Capital LLC



Founded: 1997



Headquarters:

Beverly Hills


Assets Under Management:

$100 million


Fund:

Omninet Private Equity


Investments in 2005:

Not disclosed


Investments in 2004:

Not disclosed


Minimum Investment:

$2 million


Preferred Investment Size:

$5 million-$10 million


Recent Fundings:

Paramount Scaffolding


Preferred Industries:

Manufacturing, plastics, business services, consumer products, technology


Preferred Financing Stage:

Revenue of at least $15 million


Sources of Capital:

Principals’ private capital


Top Executive:

Benjamin Nazarian, president


Summary:

Focuses on growing companies with sales ranging from $15 million to $150 million in the Western U.S. It has also invested in manufacturing and business service companies in the United States and Europe. The firm collaborates with family owners and management teams in both leveraged buyouts and recapitalizations and has a flexible investment approach. A large amount of the financing comes from its principals, who have invested over $100 million of their own capital to the private equity fund.



Pasadena Capital Partners LLC



Founded:

2002


Headquarters:

Pasadena


Assets Under Management:

N/A


Funds:

Pasadena Capital Partners LLC


Investments in 2005:

None


Investments in 2004:

None


Minimum Investment:

$7 million


Preferred Investment Size:

$10-$20 million


Recent Fundings:

None


Preferred Industries:

Consumer products, services or franchises


Preferred Financing Stage: Buyout



Sources of Capital:

Institutions, family offices and high-net worth investors


Top Executive:

Gregory Annick, president


Summary:

This is a “debut fund” firm, in the process of raising a targeted $150 million. The fund, launched in 2002, is aimed at buyouts of small to mid-size companies in Southern California. Pasadena Capital was started by Annick, formerly a partner at Leonard Green & Partners LP.



Platinum Equity Capital Partners



Founded:

2004


Headquarters:

Beverly Hills


Assets Under Management:

Not disclosed


Funds:

Platinum Equity Partners I ($700 million)


Investments in 2005:

Six


Investments in 2004:

Six


Minimum Investments:

Not disclosed


Preferred Investment Size:

Not disclosed


Recent Fundings:

US Robotics, Turf Care Supply Corp., American Racing Equipment, ACR Logistics, CompuCom Systems, GE IT Solutions, GeoLogic Solutions


Preferred Industries:

Communications equipment and services, IT services, logistics, manufacturing and distribution, automotive aftermarket

Preferred Financing Stage: Acquisitions of established companies


Sources of Capital:

Institutional investors, pension funds, foundations


Top Executive:

Tom Gores, chairman and chief executive


Summary:

Founder Gores has completed 70 transactions since 2004, targeting “strategic sellers” large companies such as General Electric Co. and Motorola Inc. that are shedding assets. Platinum will buy and reassemble these entities, merging companies in one market to create a stronger, repositioned single player. Each of its portfolio companies has an independently operated management team.



Riordan Lewis & Haden



Founded:

1984


Headquarters:

Los Angeles


Assets Under Management:

$250 million


Funds:

Not disclosed


Investments in 2005:

Two


Investments in 2004:

One


Minimum Investment:

$5 million


Preferred Investment Size:

$10 million-$15 million


Recent Fundings:

Con-Cise Lens Co., Cymetrix Corp.


Preferred Industries:

Business services outsourcing, health care services, manufacturing, distribution


Preferred Financing Stage:

Growth equity


Sources of Capital:

Institutional investors, high net worth individuals


Top Executive:

J. Christopher Lewis, managing partner


Summary:

Provides equity capital to companies typically over a four- to six-year period, financing growth, management-led buyouts and facilities recapitalizations. Former L.A. Mayor Richard Riordan founded the company more than 20 years ago. Lewis has been with the firm for more than 20 years, and former USC and L.A. Rams quarterback Patrick Haden joined in 1987. Lewis and Haden are board members at a number of publicly and privately held companies.



Sage Capital Partners LP



Founded:

2003


Headquarters:

Los Angeles


Assets Under Management:

$50 million


Funds:

Sage Capital Partners LP


Investments in 2005:

Two


Investments in 2004:

One


Minimum Investment:

$3 million


Preferred Investment Size:

$5 million


Recent Fundings:

None


Preferred Industries:

Business services, consumer products, manufacturing, alternative energy


Preferred Financing Stage:

Buyouts, recapitalization, growth equity

Sources of Capital: Wealthy individuals


Top Executives:

Brad de Koning, Daniel Gardenswartz, managing partners


Summary:

Sage acquired Mercury Partners Fund III LP in 2003 and changed its name to Sage Capital Partners LP. It now serves as the private equity arm for the Los Angeles-based merchant bank. The firm seeks companies with experienced management teams, well-defined business segments, strong market positions, and significant potential for long-term growth.



Seidler Equity Partners



Founded:

1992


Headquarters:

Los Angeles


Assets Under Management:

$450 million


Funds:

Seidler Co. LLC, Seidler Equity Partners LP, Seidler Equity Partners II LP


Investments in 2005:

Two


Investments in 2004:

Four


Minimum Investment:

$10 million


Preferred Investment Size:

$25 million


Recent Fundings:

Paragon Medical Inc., Harmar Mobility LLC, Gary Platt Manufacturing LLC


Preferred Industries:

Middle-market niche manufacturing and services businesses


Preferred Financing Stage:

Buyouts, growth capital, recapitalizations, estate planning


Sources of Capital:

Insurance companies, foundations, family offices, funds of funds


Top Executive:

Peter Seidler, managing partner


Summary:

The firm engages in management buyouts, owner-operator recapitalizations and growth financing. Portfolio companies include LA Fitness International LLC, in which the company first invested in 1998. The firm usually takes a board position with portfolio

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