2020 Year in Review

2020 was a year unlike any other. We have all had to embrace the new normal. The Patriot Capital team navigated a tough environment and added real value to our portfolio companies, offering needed strategic advice, creative capital, government assistance, and other solutions to help them through the pandemic. As the saying goes, “Change is the only constant in life” and the Patriot Capital team leaned into the uncertain environment to meet these challenges head on. We have added more people and perspectives to our team to keep driving Patriot Capital forward.

Despite the challenges we faced in 2020, Patriot Capital and our portfolio companies persevered to end the year with several achievements. We invested in five new platform companies in the last 12 months, reaching 16 platform investments and over $220 million of invested capital in Patriot Capital IV. We also supported our existing platform investments through a number of “add-on” investments. In total, six Patriot portfolio companies made add-on investments in 2020. The Funds also benefited from five portfolio company exits across the platform.

We are thankful for our employees, our portfolio management teams, our advisory board, our investors, and our partners for their hard work, grit, resilience, and advice. We value your relationship and hope 2021 brings you fresh optimism and renewed success.

new platform investments

add-on investments

recent exits

 

Patriot Capital Supports United Urology Group’s Expansion

United Urology Group

Patriot Capital is pleased to announce a new subordinated debt investment to support Audax Private Equity in their existing platform, United Urology Group (UUG). Patriot’s investment supports UUG’s continued expansion of its existing Arizona footprint, with the acquisitions of Arizona Institute of Urology and Urological Associates of Southern Arizona.

Headquartered in Owings Mills, MD, United Urology Group is a leading urology management services organization whose member groups of urology practices include: Arizona Urology Specialists with offices in the greater Phoenix/Scottsdale area; Chesapeake Urology, with offices located throughout Maryland and Delaware; Tennessee Urology, based in the greater Knoxville area and Eastern Tennessee; and Colorado Urology, located in the greater Denver and Front Range areas.

UUG members’ collective staff number more than 1,500 employees, including 220+ physicians and advanced practice providers. UUG’s vision is to be the nation’s leading urologic group practice through its commitment to accessible, high quality, cost effective care, patient satisfaction, and community involvement, assuring sustainable growth and security for its physicians and employees.

This is Patriot Capital’s 11th investment in healthcare services. For more information or industry knowledge sharing, please contact Stacey Wittelsberger.

For more information on this transaction, please contact Stacey Wittelsberger, Charles McCusker or Sean Bilbrough.

Patriot Capital Supports Edgewater Capital Partners with Investment of Naprotek, LLC

Naprotek

Patriot Capital is pleased to announce a new subordinated debt and equity co-investment alongside Edgewater Capital and Naprotek’s existing management team.

Founded in 1995 and based in San Jose, CA, Naprotek is an electronic manufacturing services company and a leading provider of quick turn printed circuit board assembly (PCBA) services for high-reliability applications. With over 25 years of experience, Naprotek has a well-established base of technical expertise, personnel, equipment, and systems allowing it to support a variety of technically advanced OEM customers and mission-critical applications.

Naprotek represents Patriot Capital’s fourth platform investment in the growing semiconductor and electronic circuitry industries.

For more information on this transaction, please contact Dan Yardley, Kyle Griffith, or Aaron Katzman.

Patriot Capital Continues to Expand Team

Patriot Capital Group, a multi-strategy middle market investment manager and advisory services platform, is pleased to announce two new hires.

Maggie WeiskopfMaggie Weiskopf joins Patriot Capital Group as a senior analyst and is responsible for financial analysis in support of investing activities. Maggie began her career at KPMG LLP in Boston, MA, within the transaction services group where she focused on financial due diligence for mergers and acquisitions, primarily concentrating on software and distribution businesses. She is a Certified Public Accountant licensed in Massachusetts and a member of the American Institute of Certified Public Accountants (AICPA). Maggie holds a BS in Accounting and Finance (summa cum laude) from Carroll School of Management at Boston College.

Samantha WoolfSamantha Woolf joins Patriot Capital Group as a marketing manager, responsible for proactively developing and managing Patriot Capital’s creative, branding, and marketing functions and supporting business development/origination activities. She has over 20 years of marketing experience, having held positions at Wells Fargo Private Bank, Charles Schwab, and Prologis. Samantha earned a BA in English from UC Berkeley.

Charles McCusker, Managing Partner of Patriot Capital Group, said: “We are excited to have Maggie and Samantha join the Patriot Capital team. Our expanding team affirms our continued dedication to helping small businesses grow through business expansions, acquisitions, management buyouts or balance sheet recapitalizations.”

 

Patriot Capital Group Hires Jeff Rummell as VP of Finance

Patriot Capital Group, a multi-strategy middle market investment manager and advisory services platform announced today it has hired Jeff Rummell to lead its finance and accounting efforts for the firm. Mr. Rummell will be responsible for all finance and accounting activity for the Patriot Capital Family of Funds; Bengur Bryan, the firm’s corporate advisory and investment banking business; and Exeter Street Capital, the firm’s lower middle market micro-cap merchant banking strategy.

Mr. Rummell brings over 15 years of experience with EY, Laureate Education and, most recently, with Blackstone Group.

Charles McCusker, Managing Partner of Patriot Capital Group commented, “We are delighted to be able to add such an experienced finance executive to the Patriot Capital Group. As we continue to grow our 20-year alternative asset management business with our institutional investors, Jeff is uniquely qualified to lead the financial functions of the firm in these efforts.” Mr. Rummell commented, “The Patriot Capital Group has developed an excellent investment platform for investors seeking to deploy capital in alternative debt and equity assets and I am excited to be an integral part of the firm’s next growth stage.”

Patriot Capital Supports Kinzie Capital with the Acquisition of Chelsea Lighting

Chelsea Lighting

Patriot Capital is pleased to announce a new subordinated debt and equity co-investment alongside Kinzie Capital and the existing management team of Chelsea Lighting. Patriot’s investment supported Kinzie’s acquisition of Chelsea Lighting.

Founded in 1994 and headquartered in New York, NY, Chelsea is the largest independent lighting and lighting controls distributor serving the New York City market, where it supplies the real estate, design, and construction industries. With the acquisition by Kinzie, Chelsea is poised to expand its best-in-class service to customers across the country while expanding its role as a leader at the intersection of lighting and technology, through its Power over Ethernet (PoE) and Controls divisions, where it has led high profile projects throughout the nation.

The transaction was completed in partnership with the Company’s management, including Thomas Ike, Brian Horigan, and Eric Martin, who will maintain significant ownership interest in Chelsea and will continue to hold key management roles at the Company, with Mr. Ike serving as CEO, Mr. Horigan as COO, and Mr. Martin as the General Counsel and CAO.

For more information on this transaction, please contact Tom Holland, Kyle Griffith or Sean Bilbrough.

Patriot Capital Supports American Manufacturing with New Investment in Summit Interconnect

Summit Interconnect

Patriot Capital is pleased to announce a new subordinated debt investment alongside HCI Equity in Summit Interconnect, an existing platform of HCI. Patriot’s investment supported Summit’s acquisition of ITL Circuits.

Headquartered in Anaheim, California, with facilities in Orange, Anaheim, and Santa Clara, California, Summit is a manufacturer of printed circuit boards. The company’s advanced technology factories are focused on complex rigid, flex, and rigid-flex PCBs for use in defense and commercial applications. The acquisition of ITL Circuits, based in Toronto, Canada, adds additional rigid PCB capabilities and capacity, and further enhances Summit’s presence in the defense and commercial end markets.

For more information on this transaction, please contact Jonathon Cope, Dan Yardley or Aaron Katzman.

Patriot Capital Supports Maysteel’s Merger with Porter’s Group

Patriot Capital Group is pleased to announce an add-on subordinated debt investment to support the merger of its existing portfolio company, Maysteel Industries, LLC (“Maysteel” or the “Company”) with Porter’s Group. Patriot originally invested subordinated debt and equity in Maysteel in 2017 in support of Littlejohn Capital, LLC and the Company’s acquisition of DAMAC Products, LLC.

Maysteel specializes in designing, engineering, and manufacturing custom sheet metal enclosures, cabinets, kiosks, and racks for specific industry solutions from its locations in Wisconsin, California, and Monterrey, Mexico. Porter’s Group, founded in 1964, is a custom metal fabricator serving 20 diverse industries from its three manufacturing locations in Lynchburg, Virginia; Sumter, South Carolina; and Garland, Texas. Porter’s is the largest metal fabricator of sheet metal and safes for the North American banking industry. The combined company, which will continue to operate under the Maysteel brand, will have over 1,000 employees with six manufacturing locations covering the U.S. and Mexico, and manufacturing partner locations in Europe. Guy Roberts, formerly CEO of Porter’s Group, will now serve as the Chief Operating Officer of Maysteel.

The merger of the two businesses creates a leading custom sheet metal fabricator serving a number of industries. With greater scale, improved market leadership, increased engineering expertise, complementary strengths and geographic reach, Maysteel now has a broader product base to offer its customers from locations needed by its customers.

For more information on this transaction, please contact Stacey Wittelsberger or Tom Holland.

Patriot Capital Supports Coltala Holdings, LLC’s Acquisition of Trüdela Holdings, LLC

Patriot Capital is pleased to announce a new subordinated debt and equity co-investment alongside Coltala Holdings, LLC in Trüdela Holdings, LLC. Patriot’s investment supported Trüdela’s acquisition of two companies, including Air Care Metro Energy Savers, Inc. (“Metro”) and Walker Air Conditioning & Heating, Inc. (“Walker”).

Located in the Dallas-Fort Worth metroplex, Metro and Walker are each full-service heating, ventilation, and air conditioning (HVAC) companies specializing in the replacement, repair, and maintenance of HVAC equipment. End markets include single-family homes, multi-family apartment complexes, and commercial businesses. Metro and Walker have each existed for more than 30 years and have developed strong brand recognition throughout the Dallas-Fort Worth area. Coltala Holdings originally partnered with the management team at Trüdela in 2018 with the strategy of building a leading HVAC platform through strategic acquisitions. The Trüdela management team collectively possesses more than 85 years of experience in the HVAC industry and is led by CEO, Paul Adams and COO, Eric Shaw.

For more information on this transaction or to discuss a potential add-on acquisition candidate, please contact Charles McCusker, Patrick Hamner or Aaron Katzman.

Patriot Capital Supports PlayMonster and Audax Private Equity’s Acquisition of Kahootz Toys

Patriot Capital is pleased to announce a new subordinated debt and equity co-investment alongside Audax Private Equity (“Audax”) in PlayMonster LLC.  Patriot’s investment supported PlayMonster’s acquisition of Kahootz, LLC.

Headquartered in Beloit, Wisconsin, PlayMonster is a designer, manufacturer and marketer of games and toys. The Company’s portfolio of games and toys for children and adults features brands such as Yeti in My Spaghetti, 5 Second Rule, My Fairy Garden, and Relative Insanity. PlayMonster products are distributed through mass, e-commerce, and specialty retailer channels across the U.S. and U.K. The addition of Kahootz expands the PlayMonster product portfolio with classic brands such as Spirograph, in addition to innovative products like Y’Art, Colorforms and Fashion Plates. Audax originally partnered with the PlayMonster team led by CEO, Bob Wann, in November 2018 with the strategy of building a leading platform through organic growth and add-on acquisitions.

For more information on this transaction or to discuss a potential add-on acquisition candidate, please contact Stacey WittelsbergerCharles Bryan or Aaron Katzman.