Most Influential Private Equity Investors in L.A. This special advertising supplement did not involve the reporting or editing staff of the Los Angeles Business Journal. T HE right private equity investor does more than provide an infusion of cash for your business. He or she – and the institution they represent – can genuinely prepare your organization (with the right resources, capital and guidance) for the next level of growth and beyond. There are some truly outstanding pro- fessionals making up the Los Angeles lending landscape. We’ve listed 14 of them here, along with some basic infor- mation about their careers, practice and some relevant recent projects they’ve been involved with. Congratulations to the trailblazing professionals who made this list and thank you for your contributions to the local business community’s success! ➼ April 27, 2015 • An Advertising Supplement to the Los Angeles Business Journal
Transcript
Most InfluentialPrivate EquityInvestors in L.A.
This special advertising supplement did not involve the reporting or editing staff of the Los Angeles Business Journal.
THE right private equity investor doesmore than provide an infusion ofcash for your business. He or she –
and the institution they represent – cangenuinely prepare your organization (withthe right resources, capital and guidance)for the next level of growth and beyond.
There are some truly outstanding pro-fessionals making up the Los Angeleslending landscape. We’ve listed 14 ofthem here, along with some basic infor-mation about their careers, practice andsome relevant recent projects they’vebeen involved with.
Congratulations to the trailblazing professionals who made this list and thankyou for your contributions to the local business community’s success!
➼
April 27, 2015 • An Advertising Supplement to the Los Angeles Business Journal
26 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL APRIL 27, 2015
Lee BaileyManaging PartnerUS Renewables Group
Years practicing: 17Years with current firm: 12Education: Lawrence University;Northwestern University;Washington University School ofLaw
Under Lee Bailey’s leadership,USRG, which he co-founded, hasplayed an integral role in
SolarReserve’s growth and the development of its firstplant near Tonopah, NV. Bailey led the formation andfounding investment in SolarReserve in 2008 and hasmanaged its growth to become a worldwide leader insolar thermal project development. His role included theinitial negotiation of the worldwide exclusive license ofUnited Technologies’ molten salt thermal storage tech-nology. He also developed the initial business plan forSolarReserve, led USRG’s seed investment in the compa-ny, and subsequently hired the executive team.
Once the project comes online this year, it will bethe most advanced energy storage project in theworld, providing clean energy, day or night.
Another highlight for Bailey and USRG in 2014 wassecuring a Fund Management License for Shanghai’sfirst RMB-denominated sustainability fund in China.Under Bailey’s leadership, USRG launched the fund,which is a joint venture between USRG and ShanghaiIndustrial Investment Group Co., Ltd (SIIG). USRGwill be the managing partner and will serve and chairthe investment committee. Working between the USand China, the fund will invest in opportunities thatleverage US-based sustainability companies and tech-nologies that have direct application to the growingneeds of the Chinese marketplace.
Matthew GarffManaging Director, LA OfficeSun Capital Partners, Inc.
Years practicing: 17Years with current firm: 14Education: University of Utah;University of Chicago
Matthew Garff leads the LosAngeles office for Sun CapitalPartners. In his efforts at SunCapital, Garff and his LA teamsources, evaluates, negotiates and
closes transactions for the firm. Recently, Sun Capital’sUS deal teams have decided to manage deal activity byindustry, with Garff and his team in the Los Angelesoffice focus on Food & Beverage, Consumer Products,Tech & Telecom and Business Services.
Garff began his career with Sun at its headquartersin Boca Raton, FL. He came to LA when the office waslaunched in 2003. The LA office has been extremelyactive under his stewardship. Most recently, the officesold the Asia division of Performance Fibers toIndorama, a global chemical business. This is a divi-sion that Sun Capital had grown over its hold periodthrough multiple investments to expand the opera-tions and capacity in Asia. Last year, the office soldCornerstone, a vitamin and supplement businessacquired a couple years earlier.
Under Garff’s leadership, the LA team has built thereputation for being decisive and responsive, whilesimultaneously being reasonable and respectful. Garffand his team in LA are actively reviewing new plat-form investments as well as add-on investments toexisting portfolio companies.
Years practicing: 30+Years with current firm: 6Education: University ofWisconsin – Milwaukee; UCBerkeley
Jeri Harman is ManagingPartner & CEO of AvanteMezzanine Partners, one of thefew majority women-owned and
managed private equity firms in the country. Harmanhas more than 30 years of investing experience,involving well over $1 billion in aggregate transac-tions. Prior to founding Avante, Harman started-upand led Los Angeles offices for both American Capitaland more recently Allied Capital, where she was also amember of Allied’s Investment Committee.
Harman and her firm specialize in providing juniorcapital to lower middle market companies. Avante’scapital is flexible with the ability to provide mezza-nine debt, unitranche debt, and equity capital depend-ing on the situation and needs of the business. Avanteinvests in lower middle market companies, which itdefines as companies earning between $3-15 millionof EBITDA.
During the last 12-18 months, Avante, led byHarman, was among the most active mezzanineinvestors in the United States, let alone the LosAngeles area. In 2014, Avante reviewed 632 deals,completed 8 new and add-on investments, anddeployed $61 million of capital. Avante’s 8 invest-ments were in the form of both mezzanine and uni-tranche debt as well as equity co-investments, andspanned a variety of industries including specialtymanufacturing, education, and business services.
APRIL 27, 2015 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 27
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MOST INFLUENTIAL PRIVATE EQUITY INVESTORS
David KaplanCo-Founder & Co-Head of Private Equity GroupAres Management LLC
Years practicing: 26Years with current firm: 12Education: University of Michigan
David Kaplan is a Co-Founderof Ares and a Director and SeniorPartner of Ares Management GPLLC, Ares’ general partner. He is aSenior Partner of Ares and Co-Head of its Private Equity Group
and a member of the Management Committee. Headditionally serves on the Investment Committees forthe Ares private equity funds. Kaplan joined Ares in2003 from Shelter Capital Partners, LLC, where he was aSenior Principal from June 2000 to April 2003. From1991 through 2000, Kaplan was affiliated with, and aSenior Partner of, Apollo Management, L.P. and its affili-ates, during which time he completed multiple privateequity investments from origination through exit.
Kaplan’s Private Equity Group team at Ares seeksinvestments in companies with strong existing man-agement teams where our capital can unlock value byserving as a catalyst for growth.
In October of 2013, Ares Management and CanadaPension Plan Investment Board completed the acquisi-tion of Neiman Marcus Group LTD Inc. Based in Dallas,Texas, Neiman Marcus Group is one of the largest U.S.luxury retailers, comprised of 91 stores totaling morethan 6.5 million gross square feet. The Company oper-ates 41 Neiman Marcus Stores, two Bergdorf Goodmanlocations in Manhattan, 30 Last Call outlet centers, 12Last Call Studios and six CUSP stores.
Jim McDermottManaging PartnerUS Renewables Group
Years practicing: 15Years with current firm: 12Education: Colorado College;UCLA
Prior to co-founding USRG,Jim McDermott started his careeras a public power banker withFirst Boston’s Municipal FinanceGroup in New York. While at First
Boston, he worked with Southern California PublicPower Authority, Los Angeles Department of Water andPower, Washington Public Power Supply System andseveral other West Coast municipal utilities.
Under McDermott’s ’s leadership, USRG has playedan integral role in Fulcrum BioEnergy’s (Fulcrum)growth and the development of its first plant in Reno,NV. McDermott led the formation and founding invest-ment in Fulcrum in 2007 to focus on developing, con-structing, owning and operating environmentallyresponsible facilities that convert municipal solid wasteinto ethanol. Following an extensive market analysis,USRG identified and licensed an orphaned thermo-chemical technology from a leading chemicals manufac-ture. Since the company’s inception, USRG has helpedraise equity for Fulcrum, including a large investmentand strategic partnership with Waste Management, theleading waste management firm in the US.
Another highlight for USRG in 2014 was the sale ofthe Common Assets platform. Under McDermott’sleadership, USRG launched Common Assets, an onlineinvestment platform designed to broaden access tocapital for renewable energy developers, and to offer awide range of investors the opportunity to participatein financing renewable energy portfolios.
David McGovernFounding & Managing PartnerMarlin Equity Partners
Years practicing: 16Years with current firm: 10Education: Louisiana StateUniversity; GeorgetownUniversity Law Center
David McGovern is theFounder and Managing Partnerof Marlin Equity Partners, a glob-al private equity firm he estab-
lished in 2005. He also serves as the Chairman of thefirm’s Executive Committee and the InvestmentCommittees across all the Marlin funds.
McGovern has significant expertise in mergers andacquisitions, corporate strategy, turnarounds, acquisi-tion integration and realizations through sales, publicofferings and recapitalizations. Under his stewardship,Marlin has completed over 85 acquisitions and real-ized 13 platform investments that have generatedattractive returns for its limited partners.
Since 2005, McGovern has led and overseen thegrowth of Marlin to over $3 billion of aggregate capi-tal under management across five institutional privateequity funds. McGovern and Marlin recently launchedMarlin Heritage, a private equity fund targeting invest-ments across the lower middle market. MarlinHeritage generated demand of more than four timesits initial $250 million target and closed on its $400million hard-cap in less than three months.
During 2014, and under McGovern’s guidance,Marlin completed 6 platform and 3 add-on acquisitions.In addition, Marlin also completed the sale of Capario,a leading provider of SaaS revenue cycle managementsolutions to healthcare providers, to Emdeon Inc.
28 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL APRIL 27, 2015
MOST INFLUENTIAL PRIVATE EQUITY INVESTORS
Ed Moss
Managing DirectorLincolnshire Management, Inc.
Years practicing: 30Years with current firm: 10Education: Williams College; YaleSchool of Management
Ed Moss joined Lincolnshire in2005 as a Managing Director toopen the Los Angeles office andcover the western US.
Lincolnshire invests in middlemarket companies in North America and Europeincluding corporate divestitures, private companies,management buyouts and growth equity for publicand private companies.
In the past year, Moss and his partners have invest-ed in AMPORTS and Fabbri Group. AMPORTS is thelargest portside automotive processing and logisticscompany in North America with operations on thePacific and Atlantic coasts of the US and Mexico.Fabbri of Italy is a leading manufacturer of film wrap-ping equipment for fresh food for foodservice clientsthroughout Europe. Other recent acquisitions includeSan Diego-based National Pen, a global direct mailprovider of personalized promotional products, andHolley, a manufacturer and supplier of automotiveaftermarket performance products.
Over the past year, as a Director of The Alaska Cluband of PADI, Moss has been very involved in the suc-cessful sale of these two portfolio companies. TheAlaska Club is the leading health club chain in Alaskaand PADI, based in Orange County, is the dominantglobal provider of scuba diving education and instruc-tor certification. In addition, as Moss leadsLincolnshire’s efforts in the western US, focusing onidentifying new investment opportunities.
Robin Nourmand
Managing DirectorBalmoral Funds
Years practicing: 10Years with current firm: 9Education: UCLA (BA, JD, MBA)
Robin Nourmand was the firsthire at Balmoral Funds in 2006,where he and his senior partnerworked together acquiring fourcompanies across their first twoinvestment pools. In 2012, the
firm expanded its team. Today Nourmand serves as a Managing Director at
Balmoral and a member of its Investment Committee.He has sourced deals, performed and managed allaspects of due diligence, crafted deal structures andproposals, raised debt financing for targets and portfo-lio companies, negotiated legal documents and exe-cuted transactions. He has also supported the financeand business-development departments of the fund’sportfolio companies, often times while serving ontheir respective board of directors at companiesincluding Bennington Marine, DispatchTransportation, iGPS and Concurrent Manufacturing.
The expertise that Nourmand brings is in partneringwith competent equity-oriented management teams toinvest in and reinvigorate companies. Often times,these investments/acquisitions can be quite difficult toexecute due to time-sensitivity, uncertainty and/or con-cerning aspects with the business/transaction dynam-ics. But his experience has been particularly good withthose companies that need solutions to complex chal-lenges. For Nourmand, the greatest professional thrill isto revitalize companies – whether they need balancesheet and operational tweaks or whether they are onthe verge of liquidation in some circumstances.
Bennett Rosenthal
Co-Founder & Head of Private Equity GroupAres Management LLC
Years practicing: 29Years with current firm: 17Education: University ofPennsylvania (BS,MBA)
Bennett Rosenthal is a Co-Founder of Ares and a Director andSenior Partner of Ares ManagementGP LLC, Ares’ general partner. Hejoined Ares in 1998 from Merrill
Lynch & Co. where he served as a Managing Director inthe Global Leveraged Finance Group.
Rosenthal currently serves on the Boards ofDirectors of Aspen Dental Management, Inc., CityVentures, LLC, Nortek, Inc. and the parent entities ofCHG Healthcare Holdings L.P., CPG International Inc.,Serta International Holdco LLC and Simmons BeddingCompany, and other private companies. His previouspublic company Board of Directors experienceincludes Maidenform Brands, Inc. and Hanger, Inc.Rosenthal also serves on the Board of Trustees of theWindward School in Los Angeles.
In August of last year, Ares Management, underRosenthal’s stewardship, completed the acquisition ofNational Veterinary Associates (NVA). Based in AgouraHills, NVA is the largest private owner of freestandingveterinary hospitals in the United States with morethan 240 locations in 39 states. NVA supports morethan 4,000 veterinary professionals and 850 veterinari-ans who provide a full range of medical and surgicalservices to local communities.
Years practicing: N/AYears with current firm: 14Education: Virginia Tech;University of Texas at Austin
Kacy Rozelle is a Co-Founderand Managing Partner of St.Cloud Capital, LLC, a LosAngeles-based private investmentfirm focused on providing growth
capital to the lower-middle market, which has made49 portfolio investments in companies across a widerange of industries in every layer of the capital struc-ture, including senior secured debt, subordinated debt,and preferred and common stock. Rozelle has beeninvolved with most every aspect of St. Cloud’s day-to-day operating activities and portfolio managementfunctions since the firm was founded over fourteenyears ago.
Over the last year, Rozelle, along with his fellowmanaging partners, secured a license from the U.S.Small Business Administration enabling St. Cloud tooperate as a Small Business Investment Company(SBIC). Created in 1958, the SBIC program is designedto stimulate growth in America’s small businesses bysupplementing the long-term debt and private equitycapital available to them. The American Recovery andReinvestment Act of 2009 enhanced the program byincreasing the maximum funding available to SBICsand, in turn, to small businesses.
Additionally, Rozelle recently agreed to serve as the2015 Western Region President for the Small BusinessInvestor Alliance, the premier organization of lowermiddle market private equity funds and investors andthe trade group for SBICs and BDCs that operate SBICs.
Martin SarafaManaging Partner Century Park Capital Partners
Years practicing: 20Years with current firm: 15Education: University ofMichigan; Wharton School at theUniversity of Pennsylvania
Sarafa is one of the founders ofCentury Park Capital Partners andhas been with the firm since itsformation in 2000. He is responsi-
ble for sourcing, closing, and managing investmentsstructured as leveraged recapitalizations, later stagegrowth capital, and leveraged buyouts.
During his time with Century Park Capital Partners,Sarafa has overseen the completion of 50 acquisitions,15 platform acquisitions and 35 add-on acquisitions.Under Sarafa’s leadership, Century Park CapitalPartners was active in 2014, completing two sizeableacquisitions and exiting a large transportation invest-ment. Sarafa co-led a cross-border acquisition ofAmber Chemical as an add-on to the firm’s specialtychemical holding, ICM Products, Inc. The combina-tion more than doubled the size of Century Park’schemical platform. In addition, Sarafa was involved inthe acquisition of Andrés Imaging and Graphics as anadd-on to the firm’s experiential marketing platform.
Sarafa has been instrumental in developing thefirm’s focus on key industry sectors includingChemicals, Medical Products & Services, ConsumerProducts, Engineered Products and Tech-EnabledBusiness Services. Sarafa’s investment philosophy is agenuine partnership approach where the firm acts as avalue-added partner to its holdings, providing morethan financial support including operational assis-tance, sales and marketing build-outs, facility expan-sion, product development strategies, system upgradesand implementation.
Patrick WhelanManaging PartnerPegasus Capital Group
Years practicing: 30Years with current firm: 18Education: Vanderbilt University;Wharton School at the Universityof Pennsylvania
Patrick Whelan foundedPegasus in 1997. His career in theleveraged buyout, venture capitaland investment banking indus-
tries spans 30 years. Whelan currently serves as aDirector of SPG International, Santier and Jackrabbit.He is Chairman of Midwest Automotive Designs andformer Chairman of WeatherGuard Building Products,Shield Pack and TOG Manufacturing. Prior to found-ing Pegasus, he completed merger and acquisitiontransactions as a Co-Managing Director for BroadviewInternational, a leading M&A investment bankingfirm that was acquired by Jefferies & Company.
Under Whelan’s stewardship, Pegasus CapitalGroup acquires and grows niche middle market com-panies with at least $2 million of operating cash flow.The firm draws on the expertise of its affiliated net-work of operators, who have successfully led andadvised companies with revenues ranging from $10million to $300 million. Pegasus’ transactions provideliquidity for individual owners, their families, outsideinvestors and/or corporate owners.
Pegasus’ most recent acquisitions includeJackrabbit, a niche manufacturer of nut harvestingand agricultural equipment with a rich history ofinnovation in the California Central Valley, as well asMidwest Automotive Designs, a leading converter ofcustom luxury vans and trucks specializing in theincreasingly popular Mercedes-Benz Sprinter platform.
Steve YagerSenior Managing DirectorThe Gores Group
Years practicing: 30Years with current firm: 30Education: University of Michigan
Steve Yager is Senior ManagingDirector and InvestmentCommittee Member for TheGores Group, a global investmentfirm. Yager works closely withGores’ Founder, Chairman and
CEO Alec Gores, and manages day-to-day operations,leads new investments, and actively engages withGores’ portfolio companies.
Yager and The Gores Group are focused on makingcontrol investments in mature and growing businessesthat are in need of operational transformation and areprimarily in the technology, telecommunication,industrial, business services, and healthcare space.
Over the last year, Yager led the Gores teamthrough a productive 2014. His team invested in sever-al carve-out, turnaround and operational transforma-tion transactions, including Tweddle Group (manufac-turer of auto service and owners manuals), Hovis (UKbased bread brand) and US Farathane (manufacturer ofhighly engineered plastic products for auto OEMs). Inaddition to overseeing investments in three platformcompanies and six tuck-ins for existing companies,Yager led the Gores team in executing four full or par-tial exits. Yager has a long history with the firm’sowner and has been instrumental in the growth andsuccess of The Gores Group since inception.
Guy ZaczepinskiManaging PartnerCentury Park Capital Partners
Years practicing: 12Years with current firm: 10Education: Wharton School at theUniversity of Pennsylvania;Harvard Business School
Guy Zaczepinski has been withCentury Park Capital Partnerssince 2005. He is responsible forsourcing, evaluating and structur-
ing growth equity and buyout transactions, as well asmonitoring portfolio company investments.Zaczepinski currently sits on the boards of Moss, Inc.,Lynx Grills, Inc., Cirtec Medical Systems, LLC andICM Products, Inc.
In 2014, Zaczepinski led the acquisition of AmberChemical Company Ltd. as an add-on to the firm’sholding, ICM Products, Inc., a leader in the siliconeschemical market with expertise in developing special-ized silicone polymers, defoamers and emulsions. Theacquisition greatly expanded ICM’s geographic foot-print to include the UK, Europe, and China.Broadening ICM’s customer and product base intoattractive new markets has been a key focus ofCentury Park’s growth strategy since Century Parkmade its original investment.
Also in 2014, Zaczepinski oversaw the acquisition ofAndrés Imaging and Graphics as an add-on to the firm’sholding, Moss, Inc., a leading provider of experientialmarketing solutions to the exhibit, event and retail inte-rior industries. Zaczepinski believes in a flexible andsupportive approach in managing the firm’s holdings,providing value-added experience and thoughtfulinsights into guiding high growth businesses.
MOST INFLUENTIAL PRIVATE EQUITY INVESTORS
The Private Equity Growth Capital Council’s
(PEGCC) Trends Report for the fourth quarter of 2014
was released earlier this year. The report indicates
that the industry recorded its highest exit volume ever
last year, at $257 billion, and also closed the year
with the most investment volume since 2007.
“We finished 2014 with all the key metrics for
industry health in strong standing,” said Steve Judge,
President and CEO of the PEGCC. “The private equity
industry invested a record amount of capital into
American companies last year. Fund managers con-
tinue to find new investment opportunities and pro-
vide the necessary capital to help businesses
expand and innovate.”
The report also found that callable capital
reserves increased significantly from $399 billion in
December 2013 to $467 billion in December 2014.
Also, total equity financing for leveraged buyouts
increased from 37 percent at the end of 2013 to 39
percent for 2014.
Bronwyn Bailey, Vice President of Research at the
PEGCC, noted that the exit trends meant strong
returns for investors.
“Exit volume in 2014 translated into tangible ben-
efits for investors, namely, record distributions from
private equity funds,” Bailey said. “If public indices
remain high, I expect continued robust exit volume
throughout 2015.”
Released each quarter, the PEGCC’s Trends
Report provides an analysis of key factors impacting
private equity industry activity in the U.S. The full
report can be found at pegcc.org.
More information about the PEGCC can be found at
www.pegcc.org.
Private Equity Exit Volumeis Highest Level on Record
