Rotunda Brochure - Rotunda Capital Partners

www.rotundacapital.com
www.rotundacapital.com
1
Investing long-term equity capital in
partnership with proven management teams
of leading lower-middle market firms
WHO WE ARE
Rotunda Capital Partners invests in the logistics,
value-added distribution, business services and
specialty finance verticals.
We identify the traits of industry leaders,
develop a plan to jointly address the gaps and
actively engage with the team.
We target founder-owned businesses seeking
to solve the “Entrepreneurs Dilemma” which
is how to find capital to fuel growth while
diversifying their personal holdings.
Rotunda rapidly helps guide the team through
the execution of “rolling 180-day plans” to
help them their team’s strategic vision for the
business.
We are often the first significant outside capital
partner.
Our hands-on approach accelerates the growth
curve, expands margins and improves capital
efficiency because we are active, long-term
business owners versus short-term, passive
investors.
Rotunda creates value by focusing on our
core industry verticals and using our Executive
Network to build a deeper understanding of
industry sector trends, business fundamentals
and the ability to enhance financial and
operational performance.
www.rotundacapital.com
2
WHY WE ARE DIFFERENT
INDUSTRY FOCUS
We are a leading independent sponsor not a typical
private equity fund.
Logistics
The Rotunda approach combines the rigor and
discipline of traditional investment sourcing and
portfolio management with stronger alignment to both
our investor and the management team partners.
Specialty Finance
Value-Added Distribution
Business Services
We commit a significant personal investment to every
deal coupled with funds from like-minded family offices,
high net worth individuals and institutional investors.
www.rotundacapital.com
3
ABOUT
Investment Approach
At Rotunda Capital, our philosophy
is to invest long-term equity capital
which enables the management team
to realize their strategic, financial
and operational objectives. This
collaborative relationship centers on
trust and integrity.
We build a partnership between the founder,
their existing team, RCP and our partners to
achieve significant, long-term value creation.
We leverage their passion, culture and ideas
with capital, knowledge and dedication to
building world-class competitors.
Our leading investment returns have resulted
from growing sales, improving margins and
increasing free cash flow. We create equity
value through operational improvement and
execution of strategic plans and not through
financial engineering. We use less debt and
more equity which allows management to focus
on growth.
Two RCP partners team up on each deal. We
often add industry and functional board level
experts to help implement the operating plan.
You get partners with decades of relevant
experience versus a “deal team”.
Prior to making an investment, we establish a
close working relationship with management
and develop a formal plan to improve each
functional area of the business. These sales,
marketing, operations, human capital and IT
initiatives are key to building “a foundation of
bricks” to support future growth.
www.rotundacapital.com
4
ABOUT
Investment Focus
We have the flexibility and capability to
partner with management in a variety of
industries to take advantage of attractive
sector and business trends.
The Rotunda Capital team has historically
invested in, and has significant industry
knowledge of the following sectors:
• Logistics
• Value-Added Distribution
• Specialty Finance
• Business Services
www.rotundacapital.com
5
ABOUT
Investment Criteria
• Family–owned firms seeking capital to fuel
growth while diversifying their personal
holdings or recapitalizing the firm
• Private businesses with enterprise values of
$15 million - $100 million
• Leading, defensible market positions with
strong growth prospects
• Top-tier management teams with significant
equity ownership
›› We believe meaningful equity ownership
and long-term incentive compensation
opportunities for management teams are
critical so that our interests are directly
aligned
• Strong free cash flow generation and high
return on net assets
›› We believe these businesses have
the best ability to service debt, fund
organic growth and weather economic
turbulence
www.rotundacapital.com
6
TEAM
The Rotunda Capital team has significant industry knowledge
in its core investment segments.
John Fruehwirth
MANAGING PARTNER
[email protected]
John Fruehwirth is a founding member and
Managing Partner of Rotunda Capital Partners.
John has worked on over $1.2 billion in
aggregate investments in over 35 companies.
He has served as Chairman or board member
of ten different firms as well as an active board
observer for more than 25 other companies.
He focuses on investments in specialty
finance, asset-light logistics and value added
distributors, but has also invested in other end
markets including business services, insurance
services, aerospace, retail, consumer products
and government contracting industries.
Prior to Rotunda, he was the Deputy Head of
Private Finance at Allied Capital Corporation
which managed over $4 billion that was invested
in over 100 portfolio companies. He served on
the Management, Investment and Portfolio
Management committees and was Co-Head
of the firm’s Operating Committee. In addition
to his execution and management roles, he
was directly responsible for all transaction
origination efforts, the internal portfolio
management team and the in-house legal team
responsible for private finance related matters.
Prior to joining Allied Capital, John worked at
Wachovia (formerly First Union) from 1996-2003
in several merchant banking groups including
Wachovia Capital Partners, Leveraged Capital
and Middle Market Capital.
From 1990 to 1994, John worked at Conoco,
Inc in a variety of operating and finance roles.
Specifically, he was as an Assistant Terminal
Manager for a specialty chemical transportation
operation with approximately 30 Teamster
drivers and 8 mechanics. He also worked in the
finance group for a $50 million operating unit.
John earned his M.B.A. from the Darden School
of Business Administration at the University
of Virginia. He earned his B.B.A. from the
University of Wisconsin-Madison with a triple
major in Finance, Management and Real Estate.
He currently serves on the Boards of Amware
Logistics Services, Primary Integration and
Commercial Credit Group, Inc.
John is also a member of Capital for Children
which exists to bring hope and resources to
children in need in the metropolitan Washington,
DC area.
www.rotundacapital.com
7
Dan Lipson
PARTNER
[email protected]
Dan Lipson is a founding member and Partner
of Rotunda Capital Partners. Prior to Rotunda,
Dan served as a Principal in the Private Finance
group at Allied Capital. While working at
Allied Capital from 2004-2009, Dan invested
approximately $500 million in subordinated debt
and equity securities and served as a rotating
member of the Investment Committee. He
served as a member of the Board of Directors of
three control portfolio companies and a board
observer with five other portfolio companies.
Prior to joining Allied Capital, Dan worked at
GE’s Merchant Banking Group structuring senior,
junior and equity investments in sponsored
transactions. Prior to that, Dan worked at
GE Equity, GE’s private equity group, in the
Industrial Group, executing equity investments
in manufacturing and distribution companies.
From 1996-2001, Dan worked as an investment
banker at Salomon Smith Barney and State
Street Capital.
Dan earned his M.B.A. from the Fuqua School of
Business at Duke University. He earned his B.A.
from Bowdoin College majoring in Economics.
At Bowdoin, Dan was a four-year letterman and
special teams captain of the football team.
In 2014, Dan was named Top 40 Under 40
Dealmaker by The M&A Advisor. He currently
serves on the Boards of Primary Integration and
Munch’s Supply Co.
www.rotundacapital.com
8
Bob Wickham
PARTNER
[email protected]
Bob Wickham is a Partner of Rotunda Capital
Partners. Prior to joining Rotunda, Bob was
a Principal in the Private Finance Group at
Allied Capital. During his seven years at Allied,
Bob invested approximately $470 million in
subordinated debt and equity securities. He
served on the Board of Directors of three
portfolio companies and was an active Board
observer of 11 other companies. Bob also
served as a rotating member of the Investment
Committee and worked on several portfolio
development and workout situations.
Prior to joining Allied Capital, Bob worked in
the investment banking groups of Merrill Lynch
and Equitable Securities (now part of SunTrust
Robinson Humphrey) and was a co-founder of
Brentwood Capital Advisors, a boutique M&A
and private placement advisor.
Bob received a B.A. in Economics, with honors,
from the University of Virginia and a M.B.A.,
with honors, from The Wharton School at the
University of Pennsylvania.
He currently serves on the Boards of Primary
Integration, Rubicon Global and Discount
Ramps.
www.rotundacapital.com
9
Corey Whisner
PARTNER
[email protected]
Corey Whisner is a Partner of Rotunda Capital
Partners. Prior to joining Rotunda, Corey worked
at Thoma Bravo where he focused on investment
opportunities in the distribution, logistics
and business services sectors. Corey served
on the Board of Directors for three portfolio
companies and held a lead role in working with
management to improve operations and drive
growth.
Corey joined Thoma Bravo from the Chicago
Investment Banking office of Credit Suisse where
he was a Director focused on providing financing
and advisory services to Distributors and MultiIndustry clients. Prior to Credit Suisse, Corey
was with the Chicago Investment Banking office
of Citigroup focusing on Consumer, Telecom
and Industrial companies.
Corey received a M.B.A with high honors from
the University of Chicago School of Business
and received a B.S. degree in Business from
Miami University.
He currently serves on the Boards of Amware
Logistics Services, Discount Ramps, Munch’s
Supply Co. and Porter and Chester.
www.rotundacapital.com
10
INVESTMENTS
Since 2009, RCP has completed nine platform investments
RCP Investments
Amware Logistics
www.AmwareLogistics.com
Amware Logistics provides B2B and B2C third-party logistics
and order fulfillment services for a wide variety of industries
throughout North America. Amware operates over 2 million
square feet of warehouse space through nine facilities located
across the United States and Toronto, Canada.
Discount Ramps
www.discountramps.com
Discount Ramps is a premier online retailer of loading,
hauling and transportation products. Offering over 11,000
products, the company primarily services the powersport,
medical, recreational, commercial, transportation, military
and industrial markets. The Company offers many well-known
brands include Black Widow, Big Boy, Rage, Kill Shot and
Summit. Discount Ramps has been recognized by Internet
Retailer as one of the top 500 revenue grossing sites in the
U.S. for the last 5 years.
Primary Integration
www.primaryintegration.com
Primary Integration is the leading, independent provider of
professional engineering and commissioning services for
mission critical, enterprise scale data centers. PI’s expertise
is optimizing the uptime and performance of these complex
facilities. Primary Integration also provides ongoing
sustainable operations consulting to mitigate risks involved
with human error and proper training and documentation to
support daily operations.
www.rotundacapital.com
11
Financial Pacific Company
www.finpac.com
Financial Pacific Company is a specialized commercial finance
company, which provides lease financing to small businesses
nationwide through a network of independent brokers.
FinPac’s portfolio of lease assets covers over 25 categories of
equipment, including industrial, food service, data processing,
vehicles, trailers, construction, and maintenance equipment.
Founded in 1975, FinPac is one of the largest and most
established small ticket lessors in the United States.
Sold on July 1, 2013 to Umpqua Holdings Corporation
(NASDAQ: UMPQ)
Worldwide Express Inc.
www.wwex.com
Worldwide Express Inc. provides global air and ground
shipping services for the domestic small and medium-sized
business market. The Company is one of the largest authorized
resellers of UPS express and ground shipping services and
has partnered with a network of over 30 best-in-class LTL, FTL,
expedited and international freight carriers to service most
shipping needs.
Sold on August 2, 2013 to Quad-C Management.
Rubicon Global
www.rubiconglobal.com
Rubicon Global is North America’s leading provider of thirdparty sustainable waste and recycling logistics solutions. The
Company utilizes its unique procurement leverage with haulers
and implements innovative landfill diversion programs to both
improve economic efficiency and achieve sustainability goals
for its customers.
www.rotundacapital.com
12
Air Express of Chicago - A Franchisee of Worldwide
Express, Inc.
www.wwex.com
Air Express of Chicago, Inc. is one of the top ten franchisees
of Worldwide Express, operating an exclusive territory
covering a majority of the greater Chicago-land area. AEC
focuses on providing value and service in supporting the
shipping needs of small and medium-sized businesses in its
territory. Worldwide Express is one of the largest authorized
reseller of UPS shipping services and provides freight services
through its network of 30 best-in-class LTL, FTL, expedited
and international freight carriers.
Munch’s Supply Co.
www.munchsupply.com
Munch’s Supply Co. was founded in 1956 by founder Willard
Munch, who wanted to develop a local source of supplies for
area contractors. Today, the company is a third generation
family business focused exclusively on supplying heating and
cooling industry contractors with quality products. With a focus
on service honed over 50 years and as a leading distributor for
trusted brands such as American Standard and Trane, Munch’s
Supply continues to serve as the premier source for HVAC
contractors throughout the greater Chicago area.
Microf
www.microf.com
Microf provides affordable rental finance solutions for
consumer’s heating and cooling needs. The Company has a
unique, proprietary relationship with Carrier branded dealers
across the United States.
www.rotundacapital.com
13
Select Prior Investments
Commercial Credit Group
www.commercialcreditgroup.com
Commercial Credit Group is an equipment finance and
leasing company serving middle market businesses in the fleet
transportation, construction and waste markets. Founded in
October 2004 by four seasoned executives, CCG focuses
exclusively on small and middle market customers in three
asset classes where each of its founders has extensive prior
experience.
Direct Capital
www.directcapital.com
Direct Capital is a leading provider of small ticket equipment
financing to businesses nationwide. The company’s direct
origination platform represents a “best in class” marketing
and sales capability that is nearly unique in the industry. The
company markets its services through direct relationships with
equipment purchasers and through partnerships with vendors,
dealers, and manufacturers of capital equipment. Direct
Capital is also the official provider of equipment financing for
eBay’s Business and Industrial website. The company has over
200 employees and is based in Portsmouth, NH.
Callidus Capital
www.calliduscapital.com
Callidus Capital is an asset management company that
structures and manages investments in collateralized debt
obligations (CDOs), senior loan collateralized loan obligations
(CLOs), and other related investments. The company currently
has over $3.8 billion in assets under management.
www.rotundacapital.com
14
York
www.yorkisg.com
York Insurance Services Group, Inc. is a leading specialty third
party administrator performing claims management services
for insurance carriers, state entities, industry programs and
self-insured entities. York’s primary activity is to process, adjust,
settle and pay claims to insureds on behalf of its customers.
York participates primarily in specialty niche areas of the highly
fragmented third party claims administration industry, where
the complexity of the claims makes York’s industry expertise
and focus on client service key differentiating factors. The
Company performs its services across multiple business lines,
including property, general liability, automotive and workers’
compensation.
STS Operating
www.sun-source.com
STS Operating, Inc. (“SunSource”) is the largest independent
distributor of fluid power products and systems in the
United States. Through its locations nationwide, SunSource
distributes 100,000 unique hydraulic, pneumatic, motion
control and filtration products manufactured by over 300
leading vendors to more than 17,000 customers. SunSource
also provides complementary value-added services including
the engineering and design of fluid power systems for original
equipment manufacturers, assembly and repair services and
technical training.
Service Partners
www.service-partners.com
Service Partners, LLC is the largest distributor of residential
fiberglass insulation and related contractor accessories
in North America. Through its nationwide network of
distribution centers, the company supplies insulation,
insulation accessories, fireplaces, gutters, roofing, drywall,
acoustical material and other building products to thousands
of contractors and retailers nationwide.
www.rotundacapital.com
15
The Hillman Group
www.hillmangroup.com
The Hillman Group, Inc. is manufacturer and distributor of metal
shapes, threaded rod and metal sheet to the retail hardware
and home improvement industry. Hillman sells to hardware
stores, home centers, pet suppliers, mass merchants, and other
retail outlets principally in the U.S., Canada, Mexico and South
America. The company’s product line includes thousands of
small parts such as fasteners and related hardware items, keys,
key duplication systems and identification items, such as tags,
letters, numbers and signs. Services offered include design
and installation of merchandising systems and maintenance
of appropriate in-store inventory levels.
Greatwide
www.greatwide.com
Greatwide Logistics Services (f.k.a. Transport Industries
Holdings) provides non-asset based transportation and
logistics services to a broad range of customers throughout
the United States. Greatwide is one of the top five asset-light
logistics services providers in the United States and a top 25
transportation and logistics service provider overall.
Excelligence
www.excelligencelearning.com
Excelligence is a leading multi-channel distributor and
manufacturer of educational products sold to child care
programs, preschools, elementary schools and consumers by
catalog, online and through a field sales force. Excelligence
serves early childhood professionals, educators, and parents
by providing quality educational products and programs for
children from infancy to 12 years of age.
www.rotundacapital.com
16
First Cardinal
www.firstcardinal.com
First Cardinal LLC is the leading third-party administrator of
workers’ compensation self-insurance groups. First Cardinal
enables businesses to pool their funds to self-insure each other
against workers’ compensation liability claims. On behalf of
the groups, First Cardinal performs all of the administrative
functions of a traditional insurance company, including claims,
underwriting, risk management and customer service. The
company also offers a fully insured workers’ compensation
policy through an A-rated carrier as a managing general agent.
By joining a First Cardinal self-insurance group, customers
typically reduce their workers’ compensation expense by
up to 20 percent while increasing employer and employee
satisfaction.
Consona
www.consona.com
Provides enterprise resource planning and customer
relationship management software and services to customers
worldwide and across a variety of industries, including
manufacturing and professional services.
www.rotundacapital.com
17
Contact
Rotunda Capital Partners has offices
in both Washington DC and Chicago.
JOHN FRUEHWIRTH
Managing Partner
[email protected]
WASHINGTON DC OFFICE
Three Bethesda Metro Center, Suite 830
Bethesda, Maryland 20814
(240) 482-0612 Phone
(240) 482-3759 Fax
CHICAGO OFFICE
555 N Skokie Blvd. Suite 255
Northbrook, IL 60062
(312) 379-9770 Phone
(240) 482-0610 (o)
(202) 441-9943 (m)
DAN LIPSON
Partner
[email protected]
(240) 482-0609 (o)
(917) 566-1893 (m)
BOB WICKHAM
Partner
[email protected]
(240) 482-0608 (o)
(202) 577-6440 (m)
COREY WHISNER
Partner
[email protected]
(312) 379-9770 (o)
(312) 339-7972 (m)
www.rotundacapital.com
18