NAIC Home Run Club

In August 2022, Pharos Capital Group, LLC announced it sold its stake in portfolio company TechLab, Inc. to SSI Diagnostica, an Adelis Equity portfolio company in a transaction that resulted in a 5.2x return for Pharos stakeholders. Founded in 1989, TechLab is a leading developer and manufacturer of diagnostic products. The company has a portfolio of diagnostic tests for infectious disease and intestinal inflammation testing. TechLab also performs diagnostics and life science contract manufacturing and services. Pharos initially invested in TechLab in September 2016 out of its Pharos Capital Partners III/III-A funds.

In August 2022, Anser Advisory, a consulting services provider, and LaFata Contract Services (LCS), the premier utility project and construction management firm, announced the merging of their organizations. As part of the transaction, IMB Partners exited its investment in LCS in a transaction that will result in a gross MOIC of 27x for IMB Partners stakeholders. Anser Advisory specializes in consulting services that include expertise in acquisition and procurement management, security consulting, enterprise technology management, training solutions, program controls, and project, program, and agency construction management.

In April 2022, Vista Equity Partners entered into a definitive agreement to sell Vista portfolio company Datto, a leading global provider of security and cloud-based software solutions purpose-built for managed service providers (MSPs), in a take-private transaction by security software company Kaseya valued at $6.2 billion. The transaction results in a 3.55x return for Vista’s Flagship Fund and a 6.4x return for its Foundation Fund. Founded in 2007 and listed on the New York Stock Exchange in October 2020 (NYSE: MSP), Datto creates enterprise-grade technology for small and medium businesses (SMBs) delivered through its global network of MSP partners. During Vista’s ownership, Datto’s annual revenue more than doubled to $620 million, its headcount increased from ~800 to more than 2,000, and its MSP customer base has grown to over 19,000.

In December 2021, Hain Celestial (Nasdaq: HAIN) acquired Proven Brands and KTB Foods (together, “Proven”) resulting in a gross MoM of 4.7x. The sale includes the flagship ParmCrips and Thinsters brands out of Clearlake’s Better For You Holdings food platform, which sponsors leading providers of high quality, branded, better-for-you snacks and beverages. Clearlake acquired Proven in 2014 and subsequently completed the acquisition of Kitchen Table Bakers, the makers of ParmCrisps, in 2016. Under Clearlake’s stewardship and O.P.S.® value creation framework, Proven introduced a variety of new flavors and innovative products, scaled distribution and manufacturing, including opening a new company-owned facility in 2020 to optimize Proven’s proprietary manufacturing process, accelerated multi-channel go-to-market capabilities, and modernized its branding with redesigned logos and packaging.

In December 2021, Clearlake completed the sale of Provation, a provider of software and SaaS-based clinical productivity and workflow automation solutions for healthcare customers, to Fortive Corporation (NYSE: FTV) resulting in a gross MoM of 23.0x. Clearlake invested in Provation in March 2018 through a carve-out acquisition from Wolters Kluwer (ENXTAM: WKL) and subsequently expanded the organization significantly. Under Clearlake’s ownership and O.P.S.® value creation framework, the Company launched new SaaS products for clinical productivity, care coordination and quality reporting, and continued to invest in engineering and products to sustain innovation while increasing sales and marketing resources to address the large and growing market. Additionally, the Company was able to successfully acquire and integrate four strategic and highly accretive add-on acquisitions which bolstered Provation’s scale and solutions offerings while also helping the Company diversify into other specialties, including anesthesia and pulmonology.

In August 2021, Wind Point Partners sold Aurora Plastics to Nautic Partners for a 5.0x gross cash-on-cash return. Based in Streetsboro, Ohio, Aurora is a leading provider of specialty materials solutions, including specialty flexible and rigid PVC, thermoplastic elastomers, and other engineered materials. Wind Point acquired Aurora in August of 2016 in partnership with veteran specialty materials executive Darrell Hughes, who joined the company as CEO. Supported by growth investments during Wind Point’s ownership, Aurora has been transformed through the introduction of new innovative products, an expanded customer base, and three add-on acquisitions that broadened the company’s specialty materials capabilities, end market reach and strategic North American footprint. Aurora now stands as a world-class commercial organization with best-in-class service and state-of-the-art manufacturing and professional operations.

In July 2021, Clearlake sold its remaining stake in NetDocuments Software to Warburg Pincus which resulted in a total gross MoM of 5.4x. NetDocuments is a growth oriented vertical SaaS platform and the leading provider of secure cloud-based content services and productivity software for law firms, corporate legal teams, and compliance departments. Since partnering with Clearlake in 2017, NetDocuments focused on accelerating growth for an industry leading technology platform. Organic growth initiatives were focused on expanding the Company’s reach across the legal market by growing the inside sales team and SMB law strategy and growing beyond the core legal market into both corporate and government end-markets. These efforts were supplemented by executing on strategic tuck-in acquisitions, which alongside significant organic investment in engineering resources, further bolstered NetDocuments’ product offering.

In June 2021, Wind Point Partners sold Ascensus Specialties to New Mountain Capital for a 5.2x gross cash-on-cash return. Based in Bellevue, Washington, Ascensus is a leading provider of specialty materials for use in critical life sciences and specialties markets and applications. Under Wind Point’s ownership and CEO Mike Huff’s leadership, Ascensus’ revenue approximately doubled and EBITDA approximately tripled through a combination of organic growth, investments in capacity expansion and supply chain optimization, three highly strategic acquisitions, and investments in a focused commercial strategy to shift from a legacy paper/pulp business towards higher value end market applications. Ascensus now stands as a global specialty chemical manufacturer serving high growth life sciences and specialties end markets. As part of the transaction, Wind Point re-invested in Ascensus via a newly formed special purpose vehicle, anchored by Blackstone Strategic Partners, which re-invested alongside New Mountain Capital. The transaction reaffirmed Wind Point’s long-term commitment to Ascensus and added New Mountain’s demonstrated experience in the company’s core end markets.

In June 2021, Janus completed the previously announced business combination with Juniper, a publicly-listed special purpose acquisition company (NYSE: JIH). Janus, a leading global manufacturer and supplier of turn-key building solutions and new access control technologies for the self-storage and other commercial and industrial sectors, now trades on the NYSE under the ticker symbol “JBI”. Clearlake acquired Janus in 2018 and the company has grown tremendously over the last several years, introducing numerous new software-based access control technologies and acquiring several critical accretive business lines. The transaction resulted in a total gross MoM of 8.1x.

In May 2021, Clearlake raised a new single-asset continuation vehicle to acquire Wheel Pros, a leading designer, manufacturer and distributor of proprietary branded aftermarket vehicle enhancements for light trucks, SUVs, passenger cars and ATVs/UTVs. In addition to broadening Wheel Pros’ investor base, the transaction provides new and follow-on capital at significantly larger scale to support the Company’s next chapter of growth. The transaction resulted in a total gross MoM of 8.4x. Since partnering with Clearlake in 2018, the Company has more than doubled revenue and quadrupled its earnings. In addition to consistent strong organic growth over the last three years, Wheel Pros completed eight acquisitions to expand its product portfolio.

In April 2021, Clearlake completed the sale of Precisely to TA Associates and a new single-asset continuation vehicle sponsored by Clearlake to fund the company’s continued growth and expansion. Precisely is a leading data integrity software provider that enables enterprises to collect, integrate, enrich, sort, and distribute data efficiently. In 2015, Clearlake acquired Syncsort (the predecessor to Precisely), a specialized provider of data integration products. In 2016, Syncsort acquired Trillium Software to expand its portfolio with leading data quality software, and Clearlake separately acquired Vision Solutions, a leading provider in data availability software for IBM Power Systems. In 2017, Clearlake sold Syncsort and Vision in a transaction that merged the two companies to increase scale and extend leading data management capabilities. Clearlake maintained a minority equity stake of ~20% following the transaction. In December 2019, Syncsort rebranded to “Precisely” after the acquisition of Pitney Bowes’s Software and Data business. The transaction resulted in a total gross MoM of 5.3x.

In August 2019, Wind Point Partners sold Evans Food Group to Highlander Partners for a 4.0x cash-on-cash return. Based in Chicago, Illinois, Evans produces and sells a diverse portfolio of finished pork rinds and pork rind pellets to customers in the U.S., Canada and more than 10 countries across Latin America. Wind Point acquired Evans in April of 2016 in partnership with existing management and industry veteran José Luis Prado, who joined the company as CEO. Prado built a world-class management team and added considerable commercial and industry expertise to the company. During Wind Point’s ownership period of just over three years, Evans’ revenue grew, and margins increased through a combination of organic growth, two complementary acquisitions, and various operational initiatives.

In July 2019, Wind Point Partners completed the sale of ValicorEnvironmental Services to Pritzker Private Capital for a 4.5x cash-on-cash return. Based in Monroe, Ohio, Valicor provides non-hazardous wastewater treatment services to more than 5,000 customers throughout North America. Leveraging its extensive fleet of tankers and a network of strategically located centralized wastewater treatment facilities, the company transports and processes diverse wastewater streams that result from the manufacture of industrial and consumer goods. Wind Point acquired Valicor in June of 2017 in partnership with existing management and industry veteran James Devlin, who joined the company as CEO. During Wind Point’s two-year ownership period, Valicor’s revenue grew and margins were increased through a combination of organic growth, four complementary acquisitions, and various operational initiatives.

In March 2019, Topspin Partners completed the sale of JD Beauty Co., LLC, to Goody Products, Inc. for a 7.8x return. JD Beauty, a leading marketer and manufacturer of professional beauty products, is the company behind the popular Wet Brush branded hair care accessories, Bio Ionic hair styling tools and Ouidad hair care. Since making the investment, Topspin and the JD Beauty team grew the company by launching several new product lines, expanding distribution capabilities, completing add-on acquisitions (including Bio Ionic and Ouidad) and growing the sales, marketing and product development teams.

In July 2019, Wind Point Partners completed the sale of ValicorEnvironmental Services to Pritzker Private Capital for a 4.5x cash-on-cash return. Based in Monroe, Ohio, Valicor provides non-hazardous wastewater treatment services to more than 5,000 customers throughout North America. Leveraging its extensive fleet of tankers and a network of strategically located centralized wastewater treatment facilities, the company transports and processes diverse wastewater streams that result from the manufacture of industrial and consumer goods. Wind Point acquired Valicor in June of 2017 in partnership with existing management and industry veteran James Devlin, who joined the company as CEO. During Wind Point’s two-year ownership period, Valicor’s revenue grew and margins were increased through a combination of organic growth, four complementary acquisitions, and various operational initiatives.

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.