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: Clearlake Announces Sale of NetDocuments to Warburg Pincus

5.4X
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.

Deal: Clearlake Portfolio Company Janus International Group Announces Completion of NYSE Listing through Business Combination with Juniper Industrial Holdings

8.1X
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.

Deal: Clearlake Capital-Backed Wheel Pros Announces Strategic Growth Investment To Fuel Company’s Future

8.4X
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.

Deal: Clearlake and TA Associates to Acquire Data Integrity Software Leader Precisely

5.3X
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.

Deal: Sale of Evans Food Group to Highlander Partners

4.0X
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.

Deal: Sale of ValicorEnvironmental Services to Pritzker Private Capital

4.5X
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.

Deal: Topspin Partners’ Sale of JD Beauty Co., LLC

7.8X
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.

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

4.83X
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

10.6X
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: Sale of ValicorEnvironmental Services to Pritzker Private Capital

4.5X
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.

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

10.0X
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

4.2X
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

12.4X
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

4.7X
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

6.7X
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

5.2X
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

10.1X
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

5.8X
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

7.7X
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: Sale of Novolex to The Carlyle Group

7.9X
In November 2016, Wind Point Partners sold Novolex (fka Hilex Poly) to The Carlyle Group for a 7.9x cash-on-cash return. Novolex is one of North America’s leaders in sustainable packaging in both paper and plastic products with unique product offerings that contain high levels of recycled materials. Wind Point acquired Novolex in 2012 in partnership with Chairman and CEO Stan Bikulege, formerly President and CEO of Renaissance Mark, a leading manufacturer of labels. Management and Wind Point utilized a robust Value Creation Plan to grow sales from $500 million to over $2.0 billion and increased profitability through new products, conversion cost reduction, and five transformative add-on acquisitions.

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.

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