Housatonic Partners, a private equity investment firm, announced today that it has made four new investments since closing a $250 million investment fund in mid-2007. Two of the investments were made from the new fund and two were made from the firm’s most recent prior fund, which is now fully committed.
In a related development, the firm also announced that it has expanded its team to include a new associate, John Locke.
“Closing a fund and bringing on a new associate has enabled us to be more aggressive in pursuing investment opportunities,” said Barry Reynolds, a managing director. “The fund is off to a strong start and we are actively looking for additional opportunities that fit our investment focus.”
Housatonic focuses on companies with enduring growth and profitability in the recurring services, media and communications industries. Since its inception in 1994, Housatonic has led buyout or recapitalization transactions in more than 50 small to mid-sized companies in these industries. The firm makes equity commitments of $10 to $20 million.
The new fund, Housatonic Equity Investors IV, was oversubscribed at its first closing. The new investments follow a 24-month period during which Housatonic realized 16 liquidity events, including the sale of 13 companies and three re-financings. The investments are:
Aircraft Fasteners International (AFI) LLC, a rapidly growing, specialized distributor of aerospace, electronics and defense industry components with excellent returns on tangible capital. Housatonic completed a $17 million financing to acquire the company. The firm’s new CEO, Scott Tucker, was previously a division president at GE/Rexel and worked closely with Housatonic on the acquisition of AFI.
Learner’s Digest International (LDI), an organization created to house the Continuing Medical Education (CME) assets of the Audio-Digest Foundation (ADF), Marathon Multimedia and Marathon International. Housatonic purchased the assets from the California Medical Association and will continue to operate the three subscription-based businesses under their original brand names. Backed by the resources of Housatonic, LDI will be a platform for further acquisitions in the CME space and related areas. Gordon Clark, CEO of newly formed LDI, has been associated with Housatonic for more than 10 years as a CEO, board member and investor.
Liberty Towers LLC, a builder and operator of communications towers in the Mid-Atlantic and Northeastern United States. Housatonic made a $20 million preferred equity investment to back a deep, experienced management team in developing the company into a significant middle-market tower company.
ProService Hawaii, a rapidly growing professional employer organization and the largest outsourced employee administration firm in the state of Hawaii. The company serves more than 800 businesses and more than 8,000 employees with best-in-class human resources services and benefits. Housatonic made a significant capital investment as part of a recapitalization of the business. ProService Hawaii has grown rapidly under new management over the past three years, expanding its breadth of services and client relationships while maintaining industry-leading profit margins.
New Associate Joins Firm
John Locke joins Housatonic from Summit Partners, where he was involved in investments in the recurring and financial services sectors ranging in size from $25 to $300 million. Locke is a magna cum laude graduate of the Woodrow Wilson School at Princeton University, where he also played on the university’s golf team.
“John’s proven ability to source private equity investment opportunities in the underserved middle market of our target industries adds depth to our already experienced core team,” said Reynolds.
Housatonic Partners is a private equity investment firm founded in 1994 with more than $650 million in capital under management. We invest in growing, profitable companies in the recurring services, media and communications industries. We have partnered with exceptional management teams in more than 50 small to mid-sized companies in these industries over the last 14 years.