Business

Hand & Stone is a leading franchisor and operator of spas offering affordable, convenient, and professional massage, skincare and health and wellness services. As of June 2022, Hand & Stone operates nearly 550 locations in the U.S. and Canada and serves a loyal base of over 500,000 members.

Harvest Partners Investments

In June 2022, Harvest acquired Hand & Stone in partnership with management. To fund the acquisition, Harvest provided equity capital and arranged the debt financing. In addition, Harvest arranged equity co-investment capital.

Investment Thesis

• A leading provider of health and wellness services in a large, growing and fragmented market
• Long record of strong financial performance with compelling financial metrics
• Attractive franchisor business model with strong unit economics and a healthy and diversified franchisee base
• Recurring revenue given contractual royalty payments and monthly subscription model
• Multiple levers for growth: same-store sales, franchise development, new services, supplier rebates, M&A
• Management team with extensive record of innovation and execution

Business

Convergint is a global leader in service-based systems integration, working alongside a global network of partners and manufacturers to design, install and service security, fire alarm, life safety, audio-visual and building automation solutions for enterprise customers.

Harvest Partners Investments

In December 2021, Harvest recapitalized Convergint in partnership with Leonard Green, Ares Management and management. To fund the acquisition, Harvest and Leonard Green provided equity capital.

Investment Thesis

• A leading player in a large, growing and fragmented market
• Mission critical service with a clear and compelling value proposition
• Long record of organic growth and accretive tuck-in acquisitions
• Attractive financial profile with strong, stable cash flows
• Committed and talented management team with a record of success

Business

Fortis Solutions Group (Fortis) is a leading converter of short and medium run length pressure sensitive labels, multi-ply coupon and booklets, flexible packaging printing, shrink sleeves, folding cartons, and label applicators. The Company serves a blue-chip customer base across the food and beverage, health and beauty, retail, agricultural chemical, and nutraceutical end markets. Fortis has a full range of flexographic and digital printing capabilities across fifteen manufacturing and sales offices across the United States.

Harvest Partners Investments

In October 2021, Harvest recapitalized Fortis in partnership with Management. To fund the acquisition, Harvest provided equity capital and arranged debt financing. In addition, Harvest arranged equity co-investment capital.

Investment Thesis

• Leading player in a large, stable and fragmented end-market
• Attractive financial profile with a strong margin and free cash flow profile
• Highly recurring revenue base with blue chip customers due to low cost, mission critical nature of the product
• Proven M&A platform with a deep pipeline of potential acquisition targets
• Strong and committed management team with a track record of success

Business

Affordable Care, LLC (“Affordable Care”) is the nation’s leading provider of tooth replacement services, serving affiliated dentists at more than 370 practices in over 40 states across the U.S. Their core offering consists of a variety of denture and implant-based solutions designed for patients suffering from complications associated with tooth loss.

Harvest Partners Investments

In August 2021, Harvest Partners recapitalized Affordable Care in partnership with Berkshire Partners and management. To fund the acquisition, Harvest Partners, Berkshire Partners, and management provided equity capital. In addition, Harvest arranged the debt financing and equity co-investment capital.

Investment Thesis

• Leading platform in a large, growing, and fragmented tooth replacement market
• Compelling value proposition with durable competitive advantages
• Long-term track record of consistent organic and inorganic growth
• Strong management team with a track record of success

Business

Granicus is a leading provider of citizen engagement and workflow SaaS solutions to federal, state and local governments. Granicus empowers stronger relationships between government agencies and citizens through comprehensive cloud-based solutions for communications, meeting and agenda management software, website design, and records management. Granicus serves nearly 4,500 federal, state and local government agency customers and more than 250 million citizen subscribers across 50 states.

Harvest Partners Investments

In January 2021, Harvest recapitalized Granicus in partnership with Vista Equity Partners, K1 Investment Management and Management. To fund the acquisition, Harvest provided equity capital and arranged debt financing. In addition, Harvest arranged equity co-investment capital.

Investment Thesis

• Leading player in a large, stable and growing end-market
• Sticky software solutions with clear and compelling value propositions
• Attractive financial profile with significant recurring revenue, business diversification, high margins and strong free cash flow
• Impressive track record of organic growth with numerous growth levers
• Proven M&A platform with a deep pipeline of strategic acquisition candidates
• Strong and committed management team with track record of success

Business

Galway Holdings (Galway Insurance or Galway), the holding company for EPIC Brokers & Consultants and JenCap Holdings, is a diversified insurance brokerage distribution platform with retail, wholesale, program administration and managing general agent capabilities. In total, Galway manages over $7 billion of insurance premiums and operates over 100 offices serving all 50 states.

Harvest Partners Investment

In December 2020, Harvest led the recapitalization of Galway in partnership with Oak Hill Capital, The Carlyle Group and management. To fund the acquisition, Harvest, Oak Hill Capital and The Carlyle Group provided equity capital and arranged the financing. In addition, Harvest arranged equity co-investment capital.

Investment Thesis

• Leading provider in a large, fragmented and growing end market
• Diversified, vertically integrated, insurance brokerage model
• Recurring revenue with strong, stable cash flows
• Strong history of organic growth with multiple organic growth levers
• Actionable industry consolidation opportunity, with a proven M&A strategy and deep pipeline of acquisition candidates
• Committed and talented management team with a track record of success

Business

MRI Software (“MRI”) is a leading provider of real estate management software solutions globally. MRI’s comprehensive product portfolio includes SaaS solutions for commercial and residential property management, leasing, accounting, investment management and modeling, facilities management, and other applications. MRI serves a diverse set of 15,000+ global enterprise customers and employs 2,000+ people across 25+ global offices.

Harvest Partners Investment

In February 2020, Harvest recapitalized MRI in partnership with TA Associates, GI Partners and management. To fund the acquisition, Harvest provided equity capital and arranged debt financing. In addition, Harvest arranged equity co-investment capital.

Investment Thesis

• Leading player in the large and growing real estate software market
• Mission-critical solutions with clear and compelling value propositions
• Attractive financial profile with significant recurring revenue, business diversification, high margins and strong free cash flow
• Impressive track record of organic growth with numerous growth levers
• Proven M&A platform with a deep pipeline of strategic acquisition candidates
• Strong and committed management team with track record of success

Business

Lazer Logistic is the largest independent operator of outsourced yard management services in the U.S. Its services include trailer spotting (rapid and precise movement of empty and full trailers at its customers' distribution centers and manufacturing facilities) and shuttling (on-demand movement of empty or full trailers between customers' sites, distribution facilities, third party rail yards and shipping ports). The company services over 100 customers across multiple end markets, including food & beverage, consumer packaged goods, eCommerce / retail and pulp & paper. Lazer Spot operates at 400+ sites across 35+ states, primarily consisting of distribution centers and manufacturing facilities. The company employs over 3,000 employees and operates a fleet of more than 1,000 spotters and trailers.

Harvest Partners Investment

In December 2019, Harvest acquired Lazer Spot in partnership with the existing management team. To fund the acquisition Harvest provided equity capital and arranged debt financing.

Investment Thesis

• Market leader in a large, fragmented and growing outsourced trailer spotting market
• Compelling customer value proposition
• Highly recurring revenue base with attractive unit economics
• Impressive track record of organic growth serving recession-resistant end markets
• Untapped M&A opportunity
• Experienced management team

Business

Service Express is a leading third-party maintenance provider of hardware support for data center infrastructure focused on mission-critical server, storage, and network equipment. Service Express has a strong value proposition as it provides services that maintain and extend the life of mission-critical data center equipment at quicker response times and a lower cost versus post-warranty support offered by OEMs.

Harvest Partners Investment

In November 2019, Harvest acquired Service Express in partnership with management. To fund the acquisition, Harvest provided equity capital and arranged the debt financing. In addition, Harvest arranged equity co-investment capital.

Investment Thesis

• Leading player in a large, growing and fragmented end-market
• Mission-critical service with a clear and compelling value proposition
• Strong track record of organic growth and accretive tuck-in acquisitions
• Attractive financial profile with recurring revenue, industry and geographic diversification and strong free cash flow generation
• Downside protection and recession resiliency
• Strong management team with track record of execution

Business

Yellowstone is the second largest provider of commercial landscape services to over 5,000 customers throughout the Southern and Southwestern United States, including corporate campuses, resorts and hotels, homeowners’ associations, multi-family communities, schools, hospitals, and municipalities.

Harvest Partners Investment

In November 2019, Harvest Partners (“Harvest”) acquired Yellowstone in partnership with the existing management team. To fund the acquisition Harvest provided equity capital and arranged debt financing.

Investment Thesis

• Leading position in the large, fragmented and growing commercial landscaping market
• Stable, recurring revenue from maintenance contracts
• Organic growth in excess of market driven by repeatable go-to-market strategy
• Consolidation platform with a strong M&A track record
• Strong management team with a successful track record

Business

Integrity Marketing Group (“Integrity”), a tech enabled provider of health and wealth products to the senior market. Integrity develops and distributes life and health insurance products with insurance carrier partners and markets these products through its distribution network, which includes retail insurance brokerages and agents.

Harvest Partners Investment

In August 2019, Harvest Partners (“Harvest”) recapitalized Integrity in partnership with HGGC and management. To fund the acquisition, Harvest provided equity capital and arranged the debt financing. In addition, Harvest arranged equity co-investment capital.

Investment Thesis

• A leading provider in the large, fragmented and growing senior life and health markets, including Medicare Advantage and Medicare Supplement
• Attractive business model with strong, stable cash flows
• Strong history of organic growth with multiple organic growth levers
• Strong and committed management team with track record of success

Business

Neighborly® is the world’s largest home services franchisor of 25 service brands (including Neighborly umbrella service brand) and more than 4,000 franchise owners serving 10 million+ customers in nine countries, focused on repairing, maintaining and enhancing homes and businesses. The company operates online platforms that connect consumers to service providers in their local communities that meet their rigorous standards as a franchisor across 15 service categories at Neighborly.com in the United States and Neighborly.ca in Canada.

Neighborly is an active member in the International Franchise Association (IFA), Canadian Franchise Association (CFA), British Franchise Association (BFA) and German Franchise Association and is a founding company of the Veterans Transition Franchise Initiative (VetFran). Neighborly was named as part of the 2019 Inc. 5000 most successful privately-owned companies in America.

Harvest Partners Investment

In May 2018, Harvest Partners acquired Neighborly, formerly known as Dwyer Group Franchising, LLC, in partnership with management. To fund the acquisition, Harvest provided equity capital and arranged the debt financing. In addition, Harvest arranged equity co-investment capital.

Investment Thesis

• Leading player in the large, growing and fragmented home services market
• Diversified platform with limited cyclicality
• Attractive growth profile with high margins and strong cash flows
• Proven M&A track record
• Experienced management team with history of success

Business

DTI was the largest private U.S. provider of legal process outsourcing (“LPO”) services, including electronic discovery, management services, litigation support, and court reporting services to Fortune 500 corporations, governmental entities, and top international law firms. In September 2016, DTI merged with Epiq Systems, another leading LPO provider offering electronic discovery, managed services, document review, bankruptcy, and class action administration services. Upon closing, DTI became the global leader in the LPO industry with an unmatched service offering for its blue-chip multi-national client base.

Harvest Partners Investment

Harvest had previously partnered with DTI from 2011 to 2014 before its recapitalization with OMERS Private Equity. In September 2016, Harvest reinvested in the Company to support DTI’s acquisition of Epiq Systems. To fund the acquisition, Harvest Partners and OMERS Private Equity provided equity capital and arranged debt financing.

Investment Thesis

• Created the #1 LPO provider with significant scale, comprehensive offering and operating efficiencies
• Participated in the large, growing, and highly fragmented LPO services market
• Generated significant value through meaningful synergies
• Invested in a stable and high free cash flow business with attractive growth profile
• Partnered with experienced and proven management team

Business

EyeCare Services Partners (“ESP”) is one of the nation’s largest vertically-integrated ophthalmologic services platform. Headquartered in Dallas, Texas, ESP has over 50 locations across 5 states. ESP’s practices provide vision services across the entire eye care continuum including ophthalmology, optometry and surgery centers.

Harvest Partners Investment

In May 2017, Harvest led the recapitalization of ESP in partnership with management. To fund the acquisition, Harvest arranged the debt financing, which included a senior credit facility and preferred equity financing.

Investment Thesis

• Leading player in large, fragmented, and growing vision services market
• Diversified platform with limited cyclicality and strong cash flows
• Sole vertically-integrated national consolidator with proven acquisition strategy
• Strong management team with a track record of success

Business

APC Automotive Technologies (“APC”) was a leading supplier of automotive, light truck and heavy duty replacement parts offering emissions products under the AP®, ANSA®, Cherry Bomb®, TruckEx®, Xlerator®, and Silverline® brands, and brake and chassis components under the Centric®, C-Tek®, Posi Quiet®, Fleet Performance, and StopTech® brands. With an unparalleled level of research and development in North America and an exceptional depth and breadth of products across makes and models, APC led the industry in emission, brake, and, chassis technology innovation, brand reputation, cataloging, and part availability.

Harvest Partners Investment

In May 2017, Harvest completed a new equity investment to facilitate the combination of AP Emissions Technologies and Centric Parts, while Audax and management retained a significant ownership stake in APC. To fund the acquisition, Harvest provided equity capital and arranged the debt financing.

Investment Thesis

• Market Leader in a Large, Recession Resistant, and Growing Market
• Solid Margins, Stable Customer Base, and Strong Free Cash Flow Profile
• M&A Platform with Strong Pipeline of Acquisition Candidates
• Experienced Management Team

Business

Magnit, through its purely vendor-neutral Managed Services Program (MSP) and Vendor Management Software (VMS) solutions, helps organizations address the costs, risks, and quality issues associated with managing a contingent workforce. A pioneer and innovator in the VMS and MSP space, Magnit offers solutions for e-procurement and management of contingent labor, 1099/co-employment risk management, and third-party payroll for client-sourced contract talent.

Harvest Partners Investment

In May 2017, Harvest acquired Magnit from Investcorp, who will re-invest in the company with a minority stake in the new capital structure. To fund the acquisition, Harvest arranged the debt financing, which included an asset-based revolving credit facility and HoldCo Notes. In addition, Harvest underwrote equity co-investment capital.

Investment Thesis

• Large and growing end-market
• Mission-critical service with a clear value proposition and high switching costs
• Strong track record of organic growth with numerous organic growth levers
• Attractive financial profile with recurring revenue, recession resiliency, cash flow conversion and industry / geographic diversification
• Deep and experienced management team

Business

OnPoint Group (OnPoint) (f/k/a Material Handling Services) is the largest provider of brand-independent repair, maintenance and fleet management services to retail, manufacturing, distribution, healthcare and hospitality companies. Based in Perrysburg, Ohio, the company primarily delivers its services via two business units, Miner Corporation and Total Fleet Solutions. Miner provides outsourced facility services including installation, repairs and asset tracking solutions to reduce customer costs and improve uptime. Total Fleet Solutions is a brand independent provider of turnkey fleet management services for Fortune 1000 companies and large manufacturing & distribution companies throughout North America.

Harvest Partners Investment

In March 2017, Harvest acquired OnPoint in partnership with management. To fund the acquisition, Harvest arranged the debt financing, which included a senior credit facility, second lien and preferred equity financing. In addition, Harvest arranged equity co-investment capital.

Investment Thesis

• Leading provider in the large and highly-fragmented material handling services market
• Strong history of organic growth with multiple organic growth levers
• Only active consolidator with proven acquisition strategy
• Deep management team with track record of success

Business

Advanced Dermatology & Cosmetic Surgery (“ADCS”) is the largest dermatology practice in the U.S. Founded in 1989 and headquartered in Maitland, FL, ADCS has over 150 locations across 12 states that provide a full range of medical, cosmetic and related laboratory dermatology services. ADCS partners with over 145 physicians that service approximately 1.5 million patient visits annually.

Harvest Partners Investment

In May 2016, Harvest led the recapitalization of Advanced Dermatology & Cosmetic Surgery in partnership with management. To fund the acquisition, Harvest arranged the debt financing, including a revolver, term loan, and senior notes.

Investment Thesis

• #1 player in large, fragmented and growing dermatology services market
• Diversified platform with limited cyclicality, consistent performance and strong cash flows
• Sole national consolidator with proven acquisition and de novo strategies
• Clinician led management team with a track record of success

Business

Headquartered in Tampa, Florida, Valet Living was a leading national provider of value-added services to the multifamily housing industry. Valet Living provided five nights-per-week doorstep waste and recycling collection for more than 400 management companies and owner groups across more than 3,200 properties and more than 900,000 apartment units across 34 states. Valet Living’s fully insured and uniformed professional employees collected waste and recyclables from residents’ doorsteps and managed multifamily communities’ on-site trash issues by streamlining waste collection at large, medium and small properties. Valet Living further leveraged its customer base, flexible workforce and technology to expand into directly adjacent services via its branded Maintenance+ segment, which included services such as common area cleaning, grounds-keeping, maintenance/repair and other janitorial work.

Harvest Partners Investment

In September 2015, Harvest Partners and Ares Management led the recapitalization of Valet Living in partnership with management. To fund the acquisition, Harvest Partners and Ares Management provided equity capital and arranged the debt financing.

Investment Thesis

• Dominant provider in growing and under-penetrated industry
• Stable, recurring business model with strong cash flows
• Multiple growth levers including organic growth and tuck-in acquisitions
• Management team with track record of success

Business

Dental Care Alliance (“DCA”) is one of the largest multi-branded dental support organizations in the U.S. The company, founded in 1991 and headquartered in Sarasota, FL, supports a network of ~360 practices across 21 states in the Midwest, Mid-Atlantic, Northeast and Southeast of the U.S. DCA affiliated practices provide a full suite of dental services, including general dentistry, hygiene, pediatric dentistry, orthodontics, endodontics, periodontics, and oral surgery.

Harvest Partners Investment

In July 2015, Harvest acquired DCA in partnership with management. To fund the acquisition, Harvest arranged the debt financing, which included a senior credit facility and mezzanine debt, and preferred equity financing.

Investment Thesis

• Large, stable and highly-fragmented dental services market
• Stable platform with consistent performance and strong cash flows
• Highly diversified service, payor and geographic mix
• Scale platform with proven acquisition and de novo strategies
• Management team with a track record of success

Business

Founded in 1997, VetCor manages over 700 veterinary hospitals across 40+ states. VetCor hospitals provide a full range of general medical and surgical services for pets, as well as pharmacy needs and ancillary services such as boarding, grooming, and pet products. The Company has distinguished itself by promoting the local identity of each hospital, offering a family friendly work environment, providing management, training and administrative support to its hospitals, and relying on the veterinarians of each hospital to manage their medical direction.

Harvest Partners Investment

In April 2015, Harvest Partners and Cressey & Company led the recapitalization of VetCor in partnership with management. To fund the acquisition, Harvest Partners and Cressey & Company provided equity capital and arranged the debt financing.

In July 2018, Harvest Partners in partnership with Oak Hill Capital Partners and Cressey & Company recapitalized VetCor.

Investment Thesis

• Large, fragmented, and growing veterinary services market
• Attractive business model with strong, stable cash flows
• Scarce, scale platform with a proven acquisition and integration strategy
• Committed and talented management team with a track record of success

Business

Athletico Management Holdings, LLC (“Athletico”) was a leading physical therapy business offering rehabilitation, outreach, and fitness services. The business was founded in 1991 by CEO Mark Kaufman, a licensed physical therapist and certified athletic trainer. It had, facilities across the Midwest and employs a team of specialists, which includes physical, and occupational therapists, certified athletic trainers, personal trainers, strength and conditioning specialists and massage therapists. In addition to facility-based rehabilitation services, Athletico provided athletic training, physical and occupational therapy, and fitness services through more than 180 affiliations, including high schools, colleges, and several major sports teams.

Harvest Partners Investment

In May 2014, Harvest led the recapitalization of Athletico in partnership with management. To fund the acquisition, Harvest arranged the debt financing, including a revolver and term loan. In addition, Harvest arranged equity co-investment capital for the transaction. Harvest sold its investment in Athletico to BDT Capital Partners in December 2016.

Investment Thesis

• Physical therapy is a large, fragmented, and growing market, which is well positioned to benefit from cost containment trends, demographics, and increasing patient access
• Demonstrated track record of strong growth and high free cash flow generation based on consistent clinic performance and new clinic openings
• Committed and talented management team

Business

AxelaCare Holdings, Inc. (“AxelaCare”) was a leading technology-enabled provider of home infusion services for chronic and acute conditions. Therapies provided ranged from immune globulin (IG) therapy to various acute therapies including antibiotics and nutrition for patients across the United States. AxelaCare was the fifth largest and one of the fastest growing national providers of immune globulin (IG) treatment, supported by its patient-centric approach and clinical leadership.

Harvest Partners Investment

In April 2013, Harvest purchased AxelaCare with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. Harvest sold its investment in AxelaCare to UnitedHealth Group (NYSE: UNH) in November 2015.

Investment Thesis

• Large, growing and fragmented industry with favorable tailwinds, including a shift toward home-based care
• Attractive, high-growth business model
• Multiple growth levers
• Strong management team with track record of success

Business

Garretson Resolution Group (“GRG”) was a leading provider of outsourced medical lien resolution and complex settlement administration services to lawyers representing both plaintiffs and defendants in legal settlements. GRG operates two business segments: Medical Lien Resolution (MLR) and Complex Settlement Administration (CSA).

Harvest Partners Investment

In December 2012, Harvest purchased GRG with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. In addition, Harvest underwrote and syndicated significant equity co-investment capital. Harvest sold its investment in Garretson Resolution Group to Epiq in December 2018.

Investment Thesis

• Market leader in a niche industry
• Compelling value proposition
• Federal healthcare regulations and outsourcing trend driving market growth
• Strong management team

Business

U.S. Silica Company (“USS”) was the second largest producer of industrial sand in North America with 22% market share and the #1 or #2 positions in most of its local markets. The company supplied well-diversified, growing end markets including glass, building products, fillers/extenders, foundry, chemicals, oil and gas, matrix materials and ceramics.

Harvest Partners Investment

In August 2007, Harvest purchased USS with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a second lien financing. In addition, Harvest arranged equity co-investment capital for the transaction. Harvest sold its investment in US Silica to Harbinger Capital Partners in October 2007.

Investment Thesis

• Strong brand and market leader
• Steadily growing industry
• Proven management team

Business

TruckPro was a leading independent distributor of heavy duty truck and trailer products. Through a network of more than 160 retail stores, service shops and distribution center locations in the U.S. and Canada, TruckPro distributed a full range of maintenance and repair products for heavy duty vehicles of substantially all makes and models. Core products include full drivetrain, power take-off, suspension, brakes, hydraulics and related products, as well as repair and rebuilding services.

Harvest Partners Investment

In November 2011, Harvest purchased TruckPro with an executive who became the CEO. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a term loan.

Investment Thesis

• Large, stable and fragmented market with limited switching
• Undermanaged business
• Back a proven executive
• Outstanding free cash flow profile

Business

Continuum Energy Services, LLC, formerly Seminole Energy Services, was a midstream oil and gas services firm with dual headquarters in Houston and Tulsa. The company provided gas-gathering, processing, natural gas liquids and crude marketing, risk management and transportation services in 32 states. Founded in 1998, Continuum has grown organically and through acquisitions.

Harvest Partners Investment

In July 2010, Harvest made a capital investment in Seminole alongside the existing management team, with the expectation of follow-on investment to fund growth.

Investment Thesis

• Stable and high free cash flow business
• Diversified service offering provides stability
• Opportunity to transform business mix from services to hard assets through acquisitions
• Attractive industry dynamics and cash yield
• Strong and proven management team

Business

Regency Energy Partners, LP (“Regency”, NYSE: RGP) was a publicly traded master limited partnership (“MLP”) midstream natural gas services company based in Dallas, TX. The company was engaged in the gathering and processing, contract compression and transportation, fractionation and storage of natural gas and natural gas liquids with assets primarily located in Arkansas, Kansas, Louisiana, Oklahoma and Texas. Regency’s general partner was majority owned by Energy Transfer Equity, L.P. (“ETE”, NYSE: ETE).

Harvest Partners Investment

In September 2009, Harvest made a capital investment in Regency’s Series A Convertible Preferred Units to fund certain growth projects. Harvest converted preferred units to common units of Regency and sold shares in the open market with a final exit in September 2013.

Investment Thesis

• Fee-based, recurring revenue stream
• High growth operating regions
• Substantial accretive growth opportunities
• Positive industry outlook and high entry barriers
• Seniority in the capital structure with attractive cash yield

Business

New Flyer Industries, Ltd. (“New Flyer”) was a leading manufacturer of heavy-duty transit buses in the United States and Canada. New Flyer held the number one market share position in both the United States and Canada based on installed buses and annual deliveries.

Harvest Partners Investment

In February 2004, Harvest purchased New Flyer with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. In addition, Harvest arranged equity co-investment capital for the transaction. Harvest completed an IPO of New Flyer on the Toronto Stock Exchange in August 2005 and realized investment proceeds through dividends received after the IPO and the sale of shares on the open market.

Investment Thesis

• Market leader
• Attractive business model and significant free cash flow generation
• Replacement-driven industry with favorable product trends

Business

Natural Products Group, LLC (“NPG”) was the parent of Arbonne International, LLC (“Arbonne”) and Levlad, LLC (“Levlad”). Arbonne was a leading direct marketer of personal care products including skin and anti-aging creams, bath and body washes and nutritional products. Arbonne marketed these products through a growing, multi-level marketing network of over one million independent consultants in North America, Australia and the United Kingdom. Levlad was a leading manufacturer and marketer of natural and organic personal care products for its branded products business, Nature’s Gate, and for a growing base of private label customers, including Arbonne.

Harvest Partners Investment

In November 2004, Harvest purchased NPG. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. In addition, Harvest arranged equity co-investment capital for the transaction. Harvest completed three dividend recapitalizations of Natural Products Group in August 2005, January 2006, and June 2006 and exited in 2010.

Investment Thesis

• Market leader
• Attractive business model
• Arbonne consultant base generates sustainable revenues and profit growth
• Favorable industry dynamics
• Geographic expansion potential

Business

Insight Global (“Insight”) is one of the fastest growing and among the top 5 providers of information technology, accounting, finance and engineering staffing solutions throughout North America. Through a network of 52 offices, Insight fills temporary and permanent staffing placements for a variety of Fortune 1000 corporations.

Harvest Partners Investment

In June 2010, Harvest purchased Insight with the existing management team. To fund the acquisition Harvest arranged the financing, which included a senior credit facility, a mezzanine note and preferred equity. In addition, Harvest underwrote and syndicated significant equity co-investment capital.

In October 2012, Harvest recapitalized Insight. To fund the recapitalization Harvest and Ares Capital provided equity capital and arranged a first and second lien credit facility.

In October 2019, Harvest recapitalized Insight again. To fund the acquisition Harvest, certain Harvest LPs, management, and Leonard Green provided equity capital. As part of the transaction, Harvest underwrote and syndicated significant equity co-investment capital to its LPs.

Investment Thesis

• Information technology, accounting, finance, and engineering are highly attractive sub-sectors
• Differentiated strategy and execution
• Significant growth potential and untapped geographic whitespace
• Proven track record of growth in new verticals

Business

Green Bank was a Houston-based community bank operating thirteen branches in the Houston, Austin and Dallas markets. Green Bank’s operating strategy is to gather stable, low-cost core deposits and prudently lend to local businesses and select middle and upper income individuals.

Harvest Partners Investment

In June 2010, Harvest invested in Green Bank with the existing management team, with the expectation of significant follow on investment to fund growth.

Investment Thesis

• Healthy and leading community bank
• Attractive competitive environment
• Strong platform for organic and acquisition growth
• Historically low valuation
• First-class management team

Business

FCX Performance (“FCX”) was a leading industrial, specialty process flow control distribution company, providing technical, mission-critical products and value-added services to more than 15,000 end users, original equipment manufacturers and engineering and construction firms across the process, energy and high purity industries. The Company’s target end markets included chemicals; upstream, midstream and downstream oil and gas; power; steel; pulp and paper; pharmaceuticals; food and beverage and general industrials. FCX provided a broad array of complementary products including valves, instruments, pumps, hoses, fittings and process flow control equipment, supported by technical expertise, integration, repair and ancillary services.

Harvest Partners Investment

In October 2012, Harvest purchased FCX with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. In addition, Harvest underwrote and syndicated equity co-investment capital. Harvest sold its investment in FCX to Applied Industrial Technologies (NYSE: AIT) in January 2018.

Investment Thesis

• Attractive, differentiated position in supply chain
• Stable, recurring business model with solid cash flows
• Diverse end markets and customers
• Scalable platform with first class senior management team

Business

Evenflo Company, Inc. (“Evenflo”) designed, manufactured and marketed a broad range of juvenile products including car seats, strollers, safety gates, activity centers and feeding products. Evenflo sold most of its products through five major retailers: Wal-Mart, Target, Babies R Us / Toys R Us, Kmart and Burlington Coat Factory (Baby Depot department).

Harvest Partners Investment

In August 2004, Harvest purchased Evenflo with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. In addition, Harvest arranged equity co-investment capital for the transaction. Harvest sold its investment in Evenflo to Weston Presidio in February 2007.

Investment Thesis

• Strong brand and market leader
• Steadily growing industry
• Potential for significant profitability improvement

Business

Encanto Restaurants, Inc. (“Encanto”) was the sole franchisee in Puerto Rico of the highly successful Yum Brands, Inc. (“Yum”) concepts, including KFC, Pizza Hut and Taco Bell. With a 19% estimated market share based on total quick-service restaurant (“QSR”) expenditures, Encanto maintained one of the leading QSR positions in Puerto Rico, supported by established brands that have operated on the island for an average of 36 years and a portfolio of 180 stores in premium, high-traffic locations.

Harvest Partners Investment

In August 2006, Harvest purchased Encanto with the existing management team. To fund the acquisition Harvest arranged the debt financing, which was comprised of a senior credit facility. In addition, Harvest underwrote and syndicated equity co-investment capital.

Investment Thesis

• Market leading brand portfolio
• Store growth opportunity
• Stable market, steady cash flow generator

Business

Driven Brands, Inc. (“Driven”) was a leading franchisor in the automotive aftermarket services industry and a national franchising platform in the United States. Driven’s flagship service brands included Meineke Car Care Centers (“Meineke”) and Maaco Collision Repair and Auto Painting (“Maaco”), two highly recognizable brands within the industry.

Harvest Partners Investment

In December 2011, Harvest purchased Driven with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. In addition, Harvest arranged equity co-investment capital for the transaction. Harvest sold its investment in Driven Brands to Roark Capital Group in April 2015.

Investment Thesis

• Large, stable and growing automotive aftermarket services industry
• Leading franchisor with a nationwide presence
• Platform for consolidation in a highly fragmented industry
• Strong and stable cash flow characteristics
• Solid franchisee unit economics and diversified franchisee base

Business

Epiq is the largest private U.S. provider of legal process outsourcing (“LPO”) services, including electronic discovery, management services, litigation support, and court reporting services to Fortune 500 corporations, governmental entities, and top international law firms. In September 2016, DTI merged with Epiq Systems, another leading LPO provider offering electronic discovery, managed services, document review, bankruptcy, and class action administration services. Upon closing, Epiq became the global leader in the LPO industry with an unmatched service offering for its blue-chip multi-national client base.

Harvest Partners Investment

Harvest had previously partnered with DTI from 2011 to 2014 before its recapitalization with OMERS Private Equity. In September 2016, Harvest reinvested in the Company to support DTI’s acquisition of Epiq Systems. To fund the acquisition, Harvest Partners and OMERS Private Equity provided equity capital and arranged debt financing.

Investment Thesis

• Create the #1 LPO provider with significant scale, comprehensive offering and operating efficiencies
• Participate in the large, growing, and highly fragmented LPO services market
• Generate significant value through meaningful synergies
• Invest in a stable and high free cash flow business with attractive growth profile
• Partner with experienced and proven management team

Business

Cycle Gear, Inc. (“Cycle Gear”) was the largest retailer of apparel, parts and accessories for motorcycle and all terrain vehicle (“ATV”) enthusiasts in the United States, operating approximately 100 stores in 26 states. Cycle Gear provided customers with a unique retail concept in the motorsport aftermarket, combining a convenient one-stop shopping experience with a broad selection of quality, brand name products, superior customer service, knowledgeable sales associates and competitive prices.

Harvest Partners Investment

In January 2005, Harvest purchased Cycle Gear with the existing management team. In addition, Harvest arranged a senior credit facility to fund working capital requirements. Harvest sold its investment in Cycle Gear to J.W. Childs in January 2015.

Investment Thesis

• Well-positioned, market leading specialty retailer
• Strong and consistent growth
• Large, growing and fragmented market

Business

Coveright Surfaces Holding GmbH (“Coveright”) was a leading global supplier of surfacing materials for applications in the furniture, flooring, woodworking and automotive industries. The company conducted manufacturing activities in Brazil, Canada, Germany, Spain and the United States, with a worldwide sales presence.

Harvest Partners Investment

In June 2003, Harvest and Deutsche Beteiligungs AG (“DBAG”), a German buyout firm, purchased Coveright with the existing management team. To fund the acquisition Harvest and DBAG arranged the debt financing, which was comprised of a senior credit facility. Harvest completed a dividend recapitalization of Coveright in May 2006, and sold its assets to strategic buyers in 2012 and 2013.

Investment Thesis

• Market leading position, with an approximate 25% share of the global non-captive producer market
• Favorable product trends
• Strong global market for product
• Cost reduction opportunity through manufacturing plant rationalization

Business

Communications Supply Corporation (“CSC”) was the third-largest distributor of low voltage infrastructure products in the United States (per the company’s estimate) at the time of exit. More than 90% of CSC revenues were derived from sales to the enterprise segment, which included large corporations, institutions and government entities. CSC had over 10,000 active customers and bought its products from a core group of 40 manufacturers.

Harvest Partners Investment

In May 2004, Harvest purchased CSC with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. In addition, Harvest arranged equity co-investment capital for the transaction. Harvest sold its investment in CSC to WESCO International, Inc. in November 2006.

Investment Thesis

• Attractive company dynamics
• Geographic expansion opportunities
• Industry recovery
• Strong management team

Business

Bartlett Holdings, Inc. (“BHI”) was a leading specialty utility services company providing critical onsite services needed to support the daily operations, routine maintenance and capital investment requirements of nuclear, fossil and renewable power facilities, as well as government decommissioning projects.

Harvest Partners Investment

In November 2010, Harvest purchased BHI with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. In addition, Harvest underwrote and syndicated equity co-investment capital. Harvest sold its investment in BHI to AE Industrial Partners in September 2017.

Investment Thesis

• Market leading business with significant barriers to entry
• Attractive operating model and strong cash flow
• Stable end markets
• Experienced, talented management team with established track record

Business

Associated Materials, Inc. (“AMI”) was a vertically integrated manufacturer and value added distributor of exterior residential building products. The company’s core products included vinyl windows, vinyl siding, aluminum and steel siding and accessories. Products were sold on a wholesale basis through the company’s dual-distribution network in the United States and Canada, consisting of more than 120 owned supply centers and approximately 250 independent dealers.

Harvest Partners Investment

In April 2002, Harvest purchased AMI with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a high yield bond financing. In addition, Harvest arranged equity co-investment capital for the transaction. Harvest completed a dividend recapitalization of Associated Materials in March 2004, a second recapitalization with Investcorp in December 2004, and a sale to Hellman & Friedman in October 2010.

Investment Thesis

• Market leader
• Vertically integrated business model
• Reputation for high levels of customer service
• Favorable industry dynamics
• Significant margin improvement opportunities

Business

Aquilex Corporation (“Aquilex”) was a leading global provider of critical maintenance, repair and industrial cleaning solutions to the energy industry. Aquilex’s customer base included leading global operators in the nuclear, fossil power, refinery/ petrochemical, pulp and paper and other process industries.

Harvest Partners Investment

In January 2007, Harvest purchased Aquilex with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. In addition, Harvest arranged equity co-investment capital for the transaction. Harvest sold its investment in Aquilex to Ontario Teachers’ Pension Plan in December 2008.

Investment Thesis

• Market leading position
• Compelling value proposition
• Highly favorable industry trends
• Strong, experienced management team
• Acquisition potential