Principal Investments

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Creative investment solutions backed by our operational and financial expertise

Our experienced professionals have deep investment and operational expertise with the ability to leverage the resources across our platform in order to identify attractive investment opportunities and deliver financial and operational improvement. Our team develops creative solutions for distressed companies or divisions that exhibit challenging market dynamics. Solutions may include recapitalization, direct equity investment, debt investment, active minority investment and buyouts.

We apply a private equity approach to investing and operating businesses, which drives cash generation and allows us to leverage our small- and mid-cap industry experience and deal flow.

Our unique access to the firm's infrastructure, capital and close relationships with lenders and other financial institutions enable us to have a wide field of view on investment opportunities, thus providing us the ability to self-source proprietary opportunities. We seek to control or influence the operations of our investments to deliver financial and operational improvements that will maximize free cash flow, and therefore, shareholder returns.

Our team has the ability to address a broad variety of transaction types ranging from solutions for clients looking for capital or more efficient back-office operations to public corporations looking to maximize shareholder value or release non-core assets.

Investment Criteria

  • $5-$100MM+ investment size
  • Strong potential for growth of stable, recurring free cash flow
  • Specialize in distressed, orphaned and contrarian situations
  • Ability to control or influence operations of target
  • Partner with key stakeholders and management teams to maximize value
  • Focus on value through synergies in organizational structure and operations
  • Strategic add-on investments for existing portfolio companies
  • Board representation

Transaction Types

  • Buyout and control investments
  • Direct equity & debt investments
  • Special situations
  • Activist situations
  • Liquidation opportunities
  • Corporate divestitures & carve-outs
  • Recapitalization
  • Distressed & turnarounds

Equity Investments

  • Established fashion brand portfolio, Brand Investment Portfolio, in partnership with Bluestar Alliance in October 2019 to hold majority ownership of assets and intellectual property related to licenses of six brands. Announced investment in Bluestar Alliance's recent acquisition of the Hurley brand.

  • Provided debt capital to media brand, theMaven, Inc. [MVEN], in August 2019 to acquire TheStreet, Inc.

  • Led $150M financing for global supplier of energy and environmental technologies and services, Babcock & Wilcox, Inc. [BW], in April 2019 to allow company to exit legacy contracts and focus on growing their core business.

  • Acquired significant ownership stake in data storage company, Quantum Corporation [QMCO], in 4Q 2018.

  • Acquired VoIP cloud-based communications company, magicJack Vocaltec, in November 2018, offering potential operational synergies with United Online.

  • Provided debt capital to manufacturer and distributor of decorating and celebration products, Signature Brands, in October 2018.

  • Acquired significant ownership stake in franchise platform company, Franchise Group, Inc. [FRG], in July 2018.

  • Acquired significant ownership stake of retailer, bebe stores, inc. [BEBE], in January 2018 and assisted in bebe's transformation to online-only retailer.

  • Provided growth capital to, and received a minority ownership position of, private telecommunications hardware company, Sonim Technologies, Inc. [SONM], in November 2017.

  • Acquired United Online, holding company of internet access and services providers NetZero and Juno, in July 2016.
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Specialty Lending

Our team is dedicated to providing opportunistic and responsive capital to the underserved middle market. We originate and underwrite senior secured to asset-rich companies across a wide array of industries by leveraging our deep in-house asset valuation expertise to deliver capital solutions that traditional lenders are typically unable to provide. Our customized solutions support a range of growth, refinancing, recapitalization and restructuring needs.

Investment Strategy

We leverage significant in-house asset valuation expertise to gain meaningful insight into collateral values: this singular perspective on real-time market trends and values enables us to extend beyond standard structures to assign value to traditional and non-traditional assets that other lenders are generally unwilling to finance. Our typical transaction ranges from $10 million to $100 million, with the ability to underwrite larger transactions.

We work collaboratively with management teams to develop optimal credit solutions and often work in partnership with institutional investors, such as commercial and regional banks, private equity funds and family offices to deliver comprehensive, creative solutions tailored to each company's unique situation.

Transaction Types

Our customized capital solutions support healthy and distressed companies by providing an alternative source of capital to meet a wide range of near-and long-term objectives:

  • Working capital
  • Corporate acquisitions
  • Recapitalizations
  • Growth capital
  • Refinancing
  • Restructuring/turnarounds

Transaction Structures

We provide secured debt financing in various forms:

  • 1st and 2nd lien secured loans
  • Unitranche loans
  • Debtor-in-possession (DIP) financing
  • FILO (first in last out) loans
  • Bridge facilities
  • Hybrid/cash flow loans