NAIC Home Run Club

The NAIC Home Run Club recognizes deals completed by NAIC member firms that have returned at least 4X to their limited partners. This will be an ongoing tribute to those diverse managers who have generated superior return.

Deal: NexPhase Capital’s Sale of CPS Group Holdings to Frazier Healthcare Partners

In March 2019, NexPhase Capital completed the sale of CPS Group Holdings, Inc. to Frazier Healthcare Partners for a 4.83x return. Founded nearly 50 years ago and employing over 2,500 clinical, regulatory and operational pharmacy professionals, CPS is one of the nation’s largest providers of pharmacy solutions to more than 700 hospitals and health system facilities across the United States and Puerto Rico. CPS helps hospital pharmacists tackle complex problems such as medication reconciliation, hyper-inflated drug costs, standardization, centralized distribution, regulatory and compliance, and 340B programs leading to increased quality, reduced admissions, and lower costs.

Deal: Clearlake Capital’s Sale of ConvergeOne to CVC Fund VII

In January 2019, Clearlake Capital Group, L.P. completed the sale of ConvergeOne to affiliates of CVC Fund VII in a $1.8 billion deal. Founded in 1993, ConvergeOne is a leading global IT services provider of collaboration and technology solutions for large and medium enterprises with decades of experience assisting customers to transform their digital infrastructure and realize a return on investment. Over 10,400 enterprise and mid-market customers trust ConvergeOne with collaboration, enterprise networking, data center, cloud and security solutions to achieve business outcomes. Driven by Clearlake’s O.P.S. value creation framework, ConvergeOne achieved significant organic and inorganic growth under Clearlake’s ownership, resulting in revenue growth of 277% for the trailing twelve-month period at June 2014 to December 2018. The transaction will result in a total gross MOIC of 10.6x.

Deal: Clearlake Capital’s Sale of Sage Automotive to Asahi Kasei

In September 2018, Clearlake Capital Group, L.P. closed the sale of Sage Automotive to Asahi Kasei (TSE: 3407) for a purchase price of $1.06 billion. Sage Automotive Interiors is a leading provider of automotive interior materials—seating, door panel surfaces, and headliners—to automotive Original Equipment Manufacturers (OEMs). Global offices and manufacturing locations include the U.S., Japan, China, Brazil, Korea, India, Thailand, Mexico, and Europe. Assuming full release of the escrow, total proceeds and gross MOIC is 10.0x (inclusive of the two previous dividend recapitalization transactions). Under Clearlake’s ownership, Sage executed an investment thesis focused on growth and transforming the company into a diversified global platform. As a result, in addition to delivering on significant topline growth, the strategy helped drive margin expansion and significant geographic, product and customer diversification.

Deal: One Rock Capital’s Sale of Airxcel to L Catterton Affiliate

In April 2018, One Rock Capital Partners sold Airxcel, one of the largest suppliers of industry-leading branded products to the RV industry and niche segments of the industrial and commercial HVAC market, to L Catterton. Since its acquisition by One Rock in 2014, Airxcel has nearly doubled earnings through strong organic growth, internal operational improvements and the acquisition and integration of three highly complementary businesses. The transaction represents a gain of approximately 4.2X for investors.

Deal: DXA Investments’ Sale of Interest in Zee Dog SA to Management

In March 2018, DXA Investments completed the sale of its stake Zee Dog SA (operating as Zee.Dog) to the company’s founders in a deal that resulted in a return on invested capital of 12.4X. Based in Rio de Janeiro, Zee Dog manufactures pet accessories that are sold in more 20 countries by way of approximately 3,000 outlets. The company also owns a branded store in New York’s SoHo neighborhood and another in Las Vegas. DXA made the investment when Zee Dog was pre-revenue, and following that investment, helped the entrepreneurs create an expansion plan that resulted in significant top- and bottom-line growth and worldwide sales.

Deal: Farol Asset Management’s Sale of Delphon Industries

In January 2018, Farol Asset Management LP, in partnership with Fulham & Co and Brooke Private Equity Associates, led the sale of Delphon Industries, LLC to PWP Growth Equity. Delphon is a leading provider of innovative, materials-based solutions and services for the handling, processing, packaging and marking of high-value technology and medical components, serving customers primarily in the semiconductor, optoelectronics, data storage and medical end markets.

Deal: Clearlake Capital’s Sale of Futuris Global Holdings

In August 2017, Clearlake Capital Group, L.P. announced a definitive agreement to sell Futuris Global Holdings LLC to an affiliate of Adient plc (NYSE: ADNT) for approximately $360 million including the assumption of approximately $18 million of net debt. Futuris, which was acquired by Clearlake in 2013 for $62.1 million, is a leading supplier of seating solutions to the global automotive industry, with an active and rapidly growing presence in North America and Asia. Under Clearlake’s ownership, Futuris executed a successful restructuring of its operations to transition from an Australian-focused supplier to a global operator with differentiated capabilities and profitable relationships with leading global automotive OEM customers. In addition, the Company successfully consummated the acquisitions of CNI Enterprises and Kongsberg Automotive’s North American headrest and armrest business.

Deal: One Rock Capital’s Sale of SRLH Holdings to Elementis plc

In March 2017, One Rock Capital Partners, LLC sold SRLH Holdings, Inc. (SummitReheis) to Elementis plc, a global specialty chemical company. SummitReheis is a leading global specialty chemicals platform that produces a wide breadth of critical active ingredients and materials tailored for use in non-discretionary and regulated personal care, pharmaceutical and dental products. The deal had an enterprise value of $360 million, which resulted in a gain of 5.2X for investors.

Deal: Verus Investment Partners’ Sale of CAPS Payroll

In August 2016, Verus Investment Partners, LLC completed the sale of CAPS Payroll to Cast & Crew Entertainment Services. CAPS Payroll is a technology-driven payroll services company serving film and TV studios, commercial production companies, as well as venues, music tours, and live events. CAPS offers cloud-based, end-to-end production payroll and accounting solutions that simplify payroll processing for clients of all sizes. The company was founded in 1991 and is headquartered in Culver City, California.

Deal: Clearlake Capital Group’s Sale of Stake in Ashley Stewart

In June 2016, Clearlake Capital Group and FirePine Group sold a controlling interest in Ashley Stewart, Inc. to an affiliate of The Invus Group LLC. Founded in 1991 and headquartered in Secaucus, NJ, Ashley Stewart is a leading global lifestyle brand for plus size women’s fashion. Under Clearlake and FirePine’s ownership, Ashley Stewart has achieved record profitability, growth and market share expansion. Less than three years removed from not having wi-fi at its former corporate offices, Ashley Stewart now boasts industry leading e-commerce and mobile penetration, customer engagement on its social media platforms and organic revenue growth.

Deal: Vista Equity Partners’ Sale of Accruent, LLC

In May 2016, Genstar Capital announced the acquisition of Accruent, LLC, the world’s largest provider of real estate, facilities, and asset management software. By offering solutions that span the entire real estate, facilities, and asset management lifecycle, Accruent has grown its customer base to over 5,400 organizations. Customers include 40 percent of the top 100 retailers, 20 percent of the Fortune 500, 40 percent of the leading universities, all of the top five U.S. wireless carriers, 55 percent of U.S. hospitals, and leading service providers managing more than 4 billion square feet of real estate.

Deal: Vista Equity Partners’ Sale of Mitratech Holdings

In September 2015, Vista Equity Partners agreed to sell enterprise legal services provider Mitratech Holdings Inc to private equity firm TA Associates Management LP, in a deal valued at more than $300 million. Based in Austin, Texas, Mitratech provides management software for the legal departments of companies, including more than 25 percent of the Fortune 500 companies. Since Vista’s investment in 2011, Mitratech completed three strategic acquisitions, and expanded into Europe, ultimately becoming the largest privately held provider of corporate legal management software in the world.

Deal: ICV Partners’ Sale of Stauber Performance Ingredients

In December 2015 ICV Partners completed the sale of Stauber Performance Ingredients, a leading distributor of nutraceutical ingredients, to Hawkins, Inc. (Nasdaq: HWKN), for $157 million. Founded in 1969, Stauber offers specialty products and ingredients to the nutritional, food, pharmaceutical, cosmetic and pet care industries with approximately 160 employees, and facilities in California and New York. ICV acquired Stauber in January 2011 and expanded the company’s product offering and develop manufacturing capabilities. The ICV team and management implemented several initiatives and executed a significant add-on acquisition that enabled Stauber to grow.

Deal: ICV Partners’ Sale of Mallet & Company

In August 2015, ICV Partners LLC completed the sale of its portfolio company Mallet & Company, Inc., to Vantage Specialty Chemicals, Inc., a portfolio company of The Jordan Company, L.P. Headquartered outside of Pittsburgh, Mallet is a leading manufacturer of value-added specialty ingredients including food grade release agents, specialty blends, emulsifiers and icing stabilizers. Additionally, the Company designs and builds customized spray equipment to apply many of its specialty ingredients. The company provides best-in-class products and services to a broad range of channel leading customers, including commercial bakeries, packaged food companies, frozen pizza manufacturers, and national pizza retail chains.

Deal: Vista Equity Partners’ Sale of Relias Learning to Bertelsmann

In October 2014, Vista Equity Partners agreed to sell Relias Learning, LLC to Bertelsmann. Relias Learning is a leading e-learning provider in the healthcare and compliance sectors, and profits from the three global megatrends of education, health, and digitization. Relias Learning was born in 2012 from the merger of Essential Learning and Silverchair Learning Systems. The company offers a robust learning management system and online training for employees in multiple industries, including senior care and other healthcare professions such as behavioral health and care for the disabled. Relias has over 4,000 institutional clients and offers some 2,500 different online courses; each year, people complete more than 20 million of its courses.

Deal: Vista Equity Partners’ Sale of MicroEdge to Blackbaud

In October 2014, Vista Equity Partners completed the sale of MicroEdge, LLC to Blackbaud. Based in New York City, MicroEdge is a leading provider of IT solutions to the grantmaking community, including private foundations, corporate philanthropy, employee giving programs, community foundations, and various other giving organizations. The company’s suite of products streamlines the full grantmaking lifecycle, from upfront submission through back-end evaluation and measurement, freeing up foundation staff to focus on issues more central to their organization’s mission. MicroEdge maintains

Deal: Palladium Equity’s Sale of ABRA Auto Body & Glass

In August 2014, Palladium Equity Partners, LLC announced it has completed the sale of ABRA Auto Body & Glass, a leading national provider of vehicle damage repair services, to affiliates of Hellman & Friedman, LLC along with ABRA’s senior management team. ABRA is a leader in collision repair, paintless dent removal, and auto glass repair and replacement. Following Palladium’s investment in October 2011, ABRA expanded its repair center footprint from 110 centers in 12 states to 240 centers in 19 states and significantly grew revenue and EBITDA. During this three-year period, the number of ABRA employees more than doubled from approximately 1,455 to 3,300.

Deal: Grain Management’s Acquisition and Lease of Spectrum Licenses

In September 2014, Grain made an investment in spectrum licenses owned by regional wireless service provider Cincinnati Bell Wireless. Concurrent with the spectrum acquisition, Grain executed a lease of most the licenses to Verizon and a bond offering secured by the Verizon lease cash flow stream, significantly reducing the amount of capital required from Fund II investors. The licenses not leased to Verizon were sold in February 2015 to T-Mobile, another national carrier. As of September 30, 2016, the transaction’s realized return was 5.35x.

Deal: One Rock Capital’s Sale of Dixie Electric

In December 2013, One Rock Capital Partners completed the sale of Dixie Electric, LLC to First Reserve Fund XII. Founded in 1951, Dixie provides electrical infrastructure and automation services from initial development throughout the life of an oilfield, including ongoing infrastructure upgrades and periodic maintenance. Further, the company has exposure to several important upstream trends with significant electrical requirements such as automation, artificial lift and enhanced oil recovery. Dixie is headquartered in Odessa, TX.

This information is being provided by NAIC to highlight specific successes of several of our member firms. It is not indicative of the typical fund performance of these firms and should not be interpreted as such.