Patriot Capital’s General Partners have over 60 collective years of experience investing equity and debt capital into high growth companies. The following companies are a representative sample of prior investments made by Patriot Capital’s investment team:
1757 GolfNorthern Virginia
1757 Golf, LLC was formed to complete and manage a daily-fee premium golf course in Northern Virginia. Patriot Capital teamed up with Billy Casper Golf, one of the largest golf course management companies in the United States, to fund the completion of construction of the golf course and provide initial working capital. 1757 has become the preeminent daily fee course in the Northern Virginia market.
Accuship, an automated audit recovery and logistics information management company was looking to refinance a portion of its senior bank loan and provide growth capital to continue its product line expansion. Patriot partnered with the current equity firm and two other new institutional investors to structure an investment that enabled the Company to more effectively re-invest into the growth of the business.
Advanced Call Center Technologies
Advanced Call Center Technologies, an accounts receivable management and fraud prevention business services company was looking to refinance a portion of its senior bank loan and secure growth capital to support infrastructure investments related to two recently generated financial services customers. Patriot partnered with the existing investors to provide the needed capital to support the growth of the business.
ARGI – The founder of Automated Resources Group (“ARGI”), a 30 year-old data management and subscription fulfillment company, decided that he would like to diversify some of his holdings and continue to participate in the ongoing management and upside potential of the Company. Patriot teamed with two private equity firms and a new CEO in the acquisition of ARGI by providing subordinated debt financing to support the transaction.
Arnold Moving, Inc.
Arnold Moving, Inc. was a buyout of the largest moving and storage company in the state of Kentucky. Chip Stelljes, while at Allied Capital as the sole institutional investor, partnered with Richard Russell, the former President of Mayflower Van Lines to purchase the Company from its founding family. Arnold specialized in high-end corporate relocations, office moves, and outsourced logistics. Over the next four years, Mr. Stelljes was highly involved in Arnold’s growth and expansion into new businesses. The Company was recapitalized by management yielding an attractive return for Allied.
Barcelona Nut Company
Barcelona Nut Company is a manufacturer and distributor of branded snack foods in the Mid-Atlantic region. Allegiance Capital partnered with existing management to complete a management buyout of the company. During its investment, management was able to unlock the value in the company’s brand and the company performance was in line with expectations. The company was able to repay the subordinated debt prior to maturity due to higher cash flow.
Belfort Instrument is a designer and manufacturer of advanced environmental measurement systems. Based on Belfort’s 100 year operating history and stable of core product offerings, Allegiance Capital provided growth capital in the form of subordinated debt with warrants to the company to support the introduction of a new product line. The new product line would diversify the company into weather instrumentation.
BG Staffing, Inc.Plano, Texas
Patriot Capital is pleased to announce a subordinated debt investment in BG Staffing, Inc. (AMEX: BGSF). Patriot recognized BG’s demonstrated success in executing a growth and diversification plan over several years, and deployed its capital to further enable shareholder value creation. The investment was part of a broader recapitalization designed to give the Company greater strategic flexibility.
Headquartered in Plano, Texas, BG Staffing provides staffing services to a variety of industries through its various divisions. BG Staffing is primarily a temporary staffing platform that has integrated several regional and national brands and is set to achieve scalable growth. The Company’s acquisition philosophy is one that not only brings financial growth, but unique and dedicated talent within the companies. This has led to a strong management team, with tenure and a desire to offer exceptional service to candidates, customers and investors. Please visit www.bgstaffing.com for more information.
Center ManufacturingGrand Rapids, MI
Patriot Capital made a subordinated debt investment to support Center Manufacturing’s acquisition of Moeller Products, based in Mississippi. Center manufacturers highly engineered, complex and customized metal assemblies and components for the heavy and medium duty truck, power sports, motorcycle and agricultural markets. Moeller is the leading manufacturer of dipsticks and fuel filler caps to the heavy duty equipment industry.
CheckAgain, the leading business outsourcing company and pioneer in the automated check representment industry, was seeking to recap one of its non-management founding shareholders and develop some new product offerings to its retail customers. Patriot invested subordinated debt w/warrants into the Company that enabled it to achieve their financing and growth strategy. CheckAgain was purchased by Fiserve Corporation and serves as a platform for Fiserv’s check representment business.
CSP Business Media, LLCMid-Atlantic
Patriot Capital II, L.P. is pleased to announce the successful acquisition of CSP Business Media, LLC by Redwood Acquisitions, Inc. Patriot Capital II, L.P. provided subordinated notes and equity in support of the acquisition. CSP is the leading business-to-business media and information company serving the convenience retailing, restaurant, and on-the-go food industries. CSP was founded in 1980 and is based in Washington, DC. As part of the transaction, Redwood Acquisitions, Inc.’s management team will assume the executive responsibilities at CSP. Redwood Acquisitions, Inc. is an investment vehicle founded by Mike Wood, Sr. and Mike Wood, Jr. to invest in leading B2B media companies.
CSS Antenna, Inc.Edgewood, MD
CSS Antenna designs and manufacturers a diverse set of products supporting the wireless industry. The Company developed its first antenna in 1997 and currently offers a wide range of products including primary antenna designs, filters, amplifiers, and supporting monitor and control software. Patriot Capital provided a subordinated debt investment to support the growth initiatives of the Company. CSS was sold to JMA Wireless in 2013.
CutexSt. Louis, MO
Patriot Capital II, L.P. provided $3.75 million in the form of Subordinated Debt and Equity to finance the acquisition of Cutex and Calico Laboratories by Arch Equity Partners. The acquisition of Cutex, the most recognized brand of nail polish remover, and Calico Laboratories, a contract fulfillment company that manufactures and bottles Cutex, was completed on August 31, 2010. This combination gave retailers greater value through a single manager of the entire nail polish remover category, while at the same time streamlining their vendor base. Patriot successfully exited this investment on October 30, 2015.
Cyalume TechnologiesWest Springfield, MA
Cyalume Technologies is the world leader in the chemiluminescent industry providing dependable light for uses by military, police, fire and other public safety organizations in the U.S., NATO countries and the Middle East. Cyalume’s chemical lights are depended on in emergencies such as blackouts, industrial accidents, acts of terrorism and natural disasters. Patriot Capital teamed with another fund to provide convertible notes to reduce existing debt balances, which provided cash flow for the Company to execute on management’s strategic vision. Patriot’s debt position was refinanced in the 2nd quarter of 2015.
D&S Residential ServicesAustin, TX
D&S Residential Services is a manager of group homes for mentally disabled clients in Texas and Tennessee operating over 120 facilities in those states. Patriot Capital supported the leveraged recapitalization of D&S with investments in subordinated debt and equity. Through the structure, the two founders were able to retain a significant equity position in the new entity and the Company was able to transition ownership and continue its growth plan with no interruption in performance. Subsequent to the initial closing, Patriot provided additional capital to support the acquisition of additional homes within the Company’s service markets. Patriot Capital successfully exited this investment in 2015.
Dedicated TransportCleveland, OH
The management of Dedicated Transport, a contract carriage logistics company, was presented with the opportunity to purchase this division of Manfredi Motor Transport. Patriot Capital, in conjunction with another SBIC, co-sponsored the spinout of this division into a separate entity. Patriot and Centerfield Capital provided equity and subordinated debt financing and secured senior financing for the company. The unique capital structure created enabled the management team to achieve significant upside potential in their investment and freely capitalize on growth potential and cashflow of the business.
DigitalThink, a leader in the emerging market of e-learning, was a prior investment of Mr. McCusker’s while at the ServiceMaster Venture Fund. At the time of the funding, Digital Think was beginning to expand into the corporate distribution channel, having been originally founded as a consumer direct e-learning content company. The funding supported the Company’s growth of a direct sales force, which resulted in sales growth of $2 million in 1998, at the time of funding, to over $60 million in 2000. The rapid growth and successful business plan enabled the Company to go public in the Spring of 2000.
ExpertPlan (www.expertplan.com) is a leading Internet-based provider of retirement plan solutions, enabling financial professionals to offer high-quality, low-cost retirement plans to meet the needs of their clients. In addition, the Company offers a variety of technology-based solutions to profitably address the e401(k) sector. ExpertPlan provides online retirement plan administration for leading financial services firms including Putnam Investments, John Hancock Funds and U.S. Bancorp. Bridge Partners, LLC, a private equity investment vehicle in which Mr. Royston and Mr. Bryan were partners, led the first round of institutional equity in the Company. In October 2002, ExpertPlan completed a Series B Preferred Stock funding of $4.35 million that included Liberty Ventures, Meridian Venture Partners, Milestone Venture Partners and NextLevel Venture Partners.
For more than 20 years, Fairfield Collectibles has become one of America’s largest marketers of vintage diecast collectibles. With well over one million replicas sold to over a half million dedicated diecast collectors, Fairfield Collectibles is the industry leader, offering its customers the greatest selection, service and value. Patriot Capital supported the leverage recapitalization of Fairfield Collectibles and subsequently supported an operational restructuring and growth capital investment into the business in 2009. Patriot Capital successfully exited this investment in 2015.
Patriot Capital III SBIC, L.P., Patriot Capital III, LP (collectively “Patriot”) partnered with management to provide subordinated debt in support of a food distributor. The Company distributes food service products to company-owned distribution centers on the Leeward and Virgin Islands, more specifically St. Thomas, St. Croix, St. Maarten and Anguilla, as well as other Caribbean islands (“The Islands”) from the Port of Palm Beach, Florida. The Company has grown to become one of the largest foods distributors in the Caribbean.
FutureHealth was a population risk management company. Allegiance Capital provided subordinated debt with warrants to the company to support provide working capital to support the company’s growth plans. During its investment, partners of Allegiance Capital advised management on acquisition opportunities and equity issuances. The company was acquired by Nationwide in 2006.
Gayesco International (GI) is a manufacturer of systems and components that are used to improve the efficiency and safety of petroleum refineries worldwide, by providing critically accurate temperature measurement throughout various refinery-processing tanks. Patriot Capital provided senior and subordinated debt to support the recapitalization of this business by management and an equity firm. Gayesco was sold to a European strategic investor.
Inspection Oilfield ServicesHouston, TX
Patriot Capital II, L.P. provided mezzanine debt and equity in support of Inspection Oilfield Services (“IOS”) acquisition of two important and highly complementary companies: JC Inspection (“JCI”) and Xxtreme Pipe Services (“Xxtreme”). Founded in 2001, with locations in Houston and Midland, Texas, JCI is a leading provider of drill tool inspection and repair services. Founded in 2003, Xxtreme is a prominent provider of inspection, API threading, repair and storage services for oil country tubular goods (“OCTG”) in Houston and south Texas. IOS was sold to a strategic acquirer in the 1st quarter of 2015.
Patriot Capital provided financing that allowed the Company to accelerate growth, ensure long-term stability while maintaining the culture and unique level and quality of its service offerings. KLMK, based in Richmond, VA, provides innovative facility solutions to visionary healthcare owners. KLMK’s consulting staff supports a variety of healthcare capital projects in the Northeastern, Mid-Atlantic, Southeastern and Southwestern United States.
Labor Ready is the largest supplier of temporary employees to blue collar labor markets in the U.S. and abroad. The Company had built a high-growth business around the concept of providing low-skilled and semi-skilled temporary workers to industrial businesses through local labor halls. Chip Stelljes, while at Allied Capital, co-lead a mezzanine investment to support the Company’s expansion and the opening of new locations. Today, the Company is traded on the NYSE, symbol, LRW, has 700 locations and has sales of $900 million.
Liquidity Services is provider of online marketplaces and integrated services for surplus assets to government and commercial entities. Allegiance Capital provided subordinated debt with warrants to the company to support its growth plan and as a bridge to a future equity raise. During Allegiance Capital investment period, the company successfully executed on its growth plan and raised over $10 million of equity capital.
Patriot Capital is pleased to announce a subordinated debt and equity investment in MetroGistics. Patriot’s investment supported Corinthian Capital’s formation of a strategic partnership between MetroGistics and two existing Corinthian Capital portfolio companies: Precision Motor Transport Group (PMTG) and McNutt Automotive Logistics (McNutt).
The combined entities will provide a full range of automotive logistics and asset-based transportation solutions to the full spectrum of customer segments. Through these partnerships, the combined customer base of MetroGistics, PMTG and McNutt will be offered a very high level of transportation flexibility and services. MetroGistics and McNutt are asset-light transportation and logistics providers headquartered in St. Louis, MO and Lowry City, MO, respectively. Okemos, Mich.-based PMTG is an asset-heavy car haul company offering premium auto delivery services via 300 enclosed and open company-owned trucks. Combined, the businesses will offer the entire spectrum of new and used customers an “asset-medium” offering not currently found in either the truckload or less-than-truckload space.
NewmarSanta Ana, CA
Newmar specializes in electronics and battery manufacturing serving the marine, telecom and emergency vehicles sectors. Patriot Capital supported the leveraged recapitalization of Newmar with investments in senior and junior subordinated debt. The existing management team was able to acquire ownership through the recapitalization and succeeded in doubling the revenue and tripling the EBITDA. The transaction was seamless to the company and its customers and the Company was able continue its growth plan with no interruption in performance.
Option 1, an enteral nutrition therapy home delivery and services company currently serves home healthcare patients in eight states. Patriot Capital supported the leveraged recapitalization of Option 1 with investments in subordinated debt and equity. Through the structure, the founder and Chief Executive Officer was able to retain a significant equity position in the new entity and the Company was able to transition ownership and continue its growth plan with no interruption in performance.
Pipeline Transportation, Inc.
Pipeline Transportation, Inc. is a petroleum transportation company operating in the Southeast. Allegiance Capital provided subordinated debt with warrants to the company to support a recapitalization of the company. In addition, the capital invested supported management’s growth plan to expand into new territories. During its investment period, Allegiance advised management on operating challenges that arose and on new opportunities.
PJNJ Foods was a Papa John’s pizza franchisee based in southern New Jersey, and a private equity investment sponsored by Mr. Bryan. Mr. Bryan was one of the founders of PJNJ Foods in 1995 and assisted in building the Company from a start-up to the development and operation of 20 Papa John’s pizza restaurants until its sale in 1999. Mr. Bryan was instrumental in raising the equity and debt to fund the growth of PJNJ and in executing the sale of the Company to Papa John’s International (www.papajohns.com).
PRI GroupChicago, IL
Patriot Capital supported the management buyout of Paper Recovery and Coyote Transportation from its previous owner in October 2007. Patriot Capital and Allegiance Capital, the successor funds to Patriot Capital II, closed the management buyout of Paper Recovery Group. PRI Group is one of the leading processors and brokers of recycled paper and plastics serving the Chicago area. Patriot and Allegiance supported the management buyout with a combination of preferred stock and subordinated debt capital. Patriot Capital also recruited industry veterans to serve on the Board of the Company to assist the management in evaluating strategic initiatives and acquisition opportunities. Patriot successfully exited this investment in 2015.
Prosoft was facing an investor covenant crisis in 1998 when the ServiceMaster Venture Fund, led by Mr. McCusker, partnered with the management team to completely change business models in moving the business from a retail training center business to a wholesaler of IT educational content. ServiceMaster Venture Fund led the subordinated debt financing, which enabled the Company to successfully execute its business plan resulting in significant cost reductions and enabling the Company to produce a profit in 1999 and 2000.
PW Stephens Environmental, Inc.Huntington Beach, CA
PW Stephens Environmental, Inc. is the largest asbestos removal, lead abatement and mold remediation service provider in the Western United States. In late May 2008, the P.W. Stephens management team approached Patriot Capital about an opportunity to purchase their operating division from a parent company through a management buyout. During its investment period, PW Stephens successfully expanded geographically and added service lines growing revenue and earnings.
R&D CircuitsSouth Plainfield, NJ and Allentown, PA
Patriot Capital provided subordinated debt and equity financing to support the acquisition and family transfer of ownership of R&D Circuits. R&D Circuits is a leading designer and manufacturer of advanced printed circuit boards used to test the most advanced integrated circuits being used in the computer, serve and smartphone technology. R&D was sold to another private equity firm in the 1st quarter of 2015.
Remet, the management of Remet Corporation, the leading supplier of manufactured wax and specialty chemical products serving the precision investment casting industry, was seeking to purchase this division from Foseco International, its parent corporation. Remet owns and operates four manufacturing plants and has over 40 distribution centers worldwide generating over $50 million in worldwide revenue. Management approached Patriot with the acquisition proposal and Patriot structured a subordinated debt and preferred stock investment that aligned the interests of the management team, the preferred stock holders and the debt holders and enabled the management team to begin maximizing the upside in the investment.
Riveron Consulting, LLCDallas, Texas
Riveron Consulting, LLC, founded in 2003, provides consulting services to private equity firms, mezzanine lenders, family offices and growth oriented public and provate businesses. Riveron helps clients maximize the value of both strategic and financial transactions through transaction advisory services and financial advisory services. Patriot invested in Riveron in October, 2013 and successfully exited the investment in March, 2015.
Sequel Youth and Family Services
Sequel Youth and Family Services is a for-profit education and correctional facility services company. The Company develops and operates programs for at-risk and delinquent juveniles. Sequel’s management team approached Patriot Capital with a five year business plan and financing strategy that would allow the Company to execute its internal growth, acquisition strategy and meet the shareholder needs. Patriot Capital presented a structural alternative to equity financing that would meet management and shareholder needs and enable the company to successfully execute its strategy.
Southeast Directional DrillingCasa Grande, AZ
Patriot Capital provided subordinated debt financing for the recapitalization of this business. Southeast Directional Drilling was founded in 2002 and provides large bore directional drilling services to the large diameter pipeline construction industry. The Company provides technical directional drilling services for pipeline installation in environmentally and ecologically sensitive areas and under existing man-made infrastructure. The Company was sold to a strategic acquirer.
STX Healthcare ServicesSouthern US
STX is a dental practice management services company that provides back office and management services to dental clinics throughout the Southeast. Patriot Capital was approached to provide financing to support a recapitalization and growth financing for this company to support continued geographical expansion of the business model.
Telecom USA Publishing Group, Inc.
Telecom USA Publishing Group, Inc., a leading independent telephone directory business, was a prior investment of Mr. Stelljes’ at Allied Capital. At the time of investment the Company published 38 independent yellow page directories and had approximately $36 million in revenues. The investment allowed the Company to continue its expansion into Iowa, Colorado, and the Dakotas. Allied also contributed its ownership in the Denver Directory, giving the Company an anchor book in a major growing market. Last year the group published 267 directories and generated $300 million in revenues. The Company was sold to McLeod USA in 1997 and again to Yell Group in 2002.
The Motley FoolAlexandria, VA
Patriot Capital teamed with another firm to provide several tranches of financing under a structure that supported a shareholder buyback program of its original founding venture capital investor. The Motley Fool is the most recognized on-line provider of financial newsletters in the financial services industry. Patriot was bought out of its investment in the 2nd quarter of 2014.
The Sandbox Group LLCChicago, IL
Patriot Capital provided a senior term and subordinated debt investment in support of The Sandbox Group LLC’s acquisition of GA Communications. During the investment lifecycle, Sandbox integrated best practices into the operations of its subsidiary agencies and made three acquisitions to expand service offerings and end markets. Sandbox currently provides marketing and advertising services to the animal healthcare, rare disease, consumer, financial services and agricultural markets.
Towne ParkAnnapolis, MD
Towne Park is the national leader of hospitality contract services and parking systems. Towne Park provides hospitality staffing and parking solutions including valet parking, door and bell, and parking management services and systems. Towne Park now has over 6,000 employees serving over 200 hospitality destinations and 125 hospitals in 50 plus markets nationwide. Patriot Capital provided subordinated debt financing in support of the transaction.
Turning TechnologiesYoungstown, OH
Turning Technologies is an innovative technology products company offering an interactive group response systems solution. The Company’s software and hardware products enable presenters in group environments to gather real-time response data from virtually any size audience and easily and instantaneously integrate the response results into a PowerPoint presentation format. Turning has expanded its portfolio of products to include data collection systems that securely transfer digital data for various assessment, testing and certification programs Patriot Capital provided subordinated debt and equity financing to support the recapitalization and rapid growth opportunities of this business.
Vita Nonwovens LLC
Patriot Capital invested sub-debt and equity and equity investment in Vita Nonwovens LLC (“Vita” or the “Company”) to support Industrial Opportunity Partner’s acquisition of the Company. Headquartered in High Point, NC, Vita is a manufacturer of high-performance nonwoven material. Vita is a supplier of products to customers primarily in the U.S. bedding/mattress and automotive industries. The primary products include nonwovens for mattress panels, borders and padding, and noise reduction and thermal insulation products for automotive applications. Soon after its investment in Vita, the Company received an offer from a strategic acquirer.