Patriot Capital Joins United Nations Principles for Responsible Investment as Signatory

Patriot Capital, a multi-strategy middle market investment firm, announced today that the firm has become a signatory to the UN’s Principles for Responsible Investment (PRI). Implemented by the United Nations Secretary-General, the PRI were developed by an international group of institutional investors reflecting the increasing relevance of Environmental, Social, and Corporate Governance (ESG) issues to investment practices.

“We’re proud to become a signatory to the PRI. While ESG investing has recently grown in popularity, Patriot has been operating with an implicit responsible investing lens for over 20 years,” said Charles McCusker, managing partner at Patriot Capital.

“The pandemic and the related events of the past year compelled us to take formal action and become advocates for change in the investment industry. As a firm, we’re approaching $1 billion of invested capital and we know that we can be active change agents and advocates in the investment industry,” said Jon Cope, principal at Patriot Capital.

As part of Patriot Capital’s commitment to the PRI, the firm will adhere to its stringent principles and commit to:

  • Incorporate ESG issues into investment analysis and decision-making processes;
  • Be an active owner and incorporate ESG issues into our ownership policies and practices;
  • Seek appropriate disclosure on ESG issues by the entities in which we invest;
  • Promote acceptance and implementation of the PRI principles within the investment industry;
  • Work with the PRI Secretariat and other signatories to enhance their effectiveness in implementing the principles; and
  • Report on our activities and progress towards implementing the PRI principles.

“Our Responsible Investing framework guides our entire investment lifecycle – from initial deal sourcing and screening, through due diligence, and during the life of a portfolio company investment,” added Stacey Wittelsberger, principal at Patriot Capital. “Our framework centers around three pillars of Culture, Compliance, and Community, and we have already started to dialogue with our portfolio companies on how we can have a lasting impact on these important issues.”

Patriot Capital Group and First Capital Partners Announce Successful Exit of Advantage Engineers

Advantage Engineers logo

Patriot Capital, a multi-strategy middle market investment firm, and First Capital Partners, a junior capital investment firm, are pleased to announce the sale of their portfolio company, Advantage Engineers, LLC, to Network Connex, a provider of mission critical network deployment solutions in fiber optics, data centers, and wireless and video networks.

Headquartered in Columbia, MD, Advantage Engineers is a nationwide engineering and design firm bringing innovative solutions to telecommunications infrastructure projects. Advantage Engineers offers specialized solutions, including site acquisition, planning and surveying, civil, structural and electrical engineering, zoning and permitting, construction management, and inspection and verification for both wireless and fiber deployments. Advantage Engineers will operate under the Network Connex umbrella, forming the backbone of its Engineering & Professional Service Line and complementing Network Connex’s existing Fiber, Data Center, and Wireless and Construction Service Lines.

First Capital Partners and Patriot Capital invested in Advantage Engineers in 2016 in a recapitalization transaction to support existing management/owners to develop and pursue its growth strategy culminating in the sale to Network Connex. During the investment period, Advantage Engineers completed the divesture of its geotechnical engineering division to a strategic acquirer, significantly expanded its geographic footprint by acquiring a West Coast telecommunications site acquisition and engineering firm, as well as opening new offices.

“We are pleased with the outcome of this investment for our respective funds and believe that Advantage Engineers is well positioned to continue to grow its business as part of the Network Connex platform, particularly as the 5G telecommunications network infrastructure roll out continues to accelerate,” commented Young Park, managing director at First Capital Partners and former board member of Advantage Engineers.

“Advantage Engineers experienced rapid growth and our hats are off to the management team who led us through the investment period whereby Advantage Engineers’ core telecommunications revenues grew by over 300% and EBITDA grew by over 600% in the last five years,” said Charles McCusker, managing partner at Patriot Capital and former board member of Advantage Engineers.

“We are excited about the platform we are joining at Network Connex, and we want to thank our management team and our former capital partners at First Capital and Patriot Capital who provided strategic guidance for the last five years and helped to position Advantage Engineers for its next growth phase,” commented John McGrath, chief executive officer of Advantage Engineers.

Patriot Capital Group Hires Charles Adams as Associate Managing Director for Southwest Region

Charles M. Adams

Patriot Capital Group, a multi-strategy middle market investment manager and advisory services platform, announced today it has hired Charles Adams as Associate Managing Director for the Southwest region.

Mr. Adams will be responsible for origination, underwriting/execution, and portfolio management. He brings over $3 billion of credit transaction experience and nearly a decade of partnering with middle market private equity sponsors and management teams, having worked at Texas Capital Bank and GE Capital Markets. Mr. Adams is a registered representative holding active Series 7, 63, and 79 securities licenses.

Charles McCusker, Managing Partner of Patriot Capital Group, said, “We are delighted to have Charles join the Patriot Capital team to further expand our presence in the Southwest. As we continue to grow our 20-year alternative asset management business, Charles’s experience in developing long-term relationships with various origination partners will help propel our firm’s next stage of growth.”

“I was drawn to Patriot Capital’s hands on, relationship-driven focus on deal sourcing and portfolio management,” said Mr. Adams. “I am excited to join the Patriot Capital Group and contribute to the firm’s continued success in helping companies meet their objectives and deliver results.”

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.