Boston and San Francisco - October 6, 2009 - Housatonic Partners, a private equity investment firm, announced today that it has made five additional investments in the last 20 months, bringing to nine the number of new investments made since closing its $250 million fund, Housatonic Equity Investors IV, in mid-2007.
The firm also announced that it has expanded its team with a second new associate, Christopher C. Chiou.
“Despite the turbulent economic conditions of the past year, we’ve experienced a surge of investment opportunities and maintained a steady investment pace,” said Barry Reynolds, a managing director. “Several factors have helped us in pursuing new opportunities. The liquidity shortage has eased pricing expectations for even the highest quality businesses; we’ve proactively targeted pockets of growth that exist despite the weak economy; and we brought on a second associate to help generate new opportunities. Prudent use of leverage has also served us well in this environment.”
Housatonic focuses on growth buyouts and recapitalizations of profitable, small market services businesses with highly recurring revenue. Since its inception in 1994, Housatonic has led buyout or recapitalization transactions in more than 60 growth-oriented small to mid-sized companies. The firm makes equity commitments of $5 to $25 million.
The five new investments are:
Alta Colleges, Inc., a for-profit holding company for nationally accredited, degree-granting higher education schools that provide a wide range of career-oriented educational programs. Housatonic led a stock buyback transaction in June, and is now the single largest shareholder. Headquartered in Denver, Alta College’s institutions have more than 15,000 students in 27 degree programs at 17 campuses in California, Colorado, Georgia, Illinois, Texas and Virginia, and a top-ranked online campus.
OASIS Group (Offsite Archive Storage and Integrated Services), one of the leading records management providers in Ireland and the United Kingdom. Housatonic made a significant capital commitment, along with Sverica International, as part of a recapitalization of the business. OASIS is Housatonic’s fourth investment in records management, an industry that exemplifies the economic characteristics the firm seeks. The management team at OASIS includes executives Housatonic has worked with in prior successful investments. With operations in Belfast, Dublin and the greater London area, OASIS has experienced significant growth over the last two years.
ONRAD, Inc., a leading teleradiology company offering remote read capabilities to hospitals, radiology groups and imaging centers. With all of its physicians located in the United States, ONRAD focuses on delivering “final” interpretations of digital images across a broad range of modalities including: CT, MRI, mammography, ultrasound and PET/CT. Housatonic’s investment provides the company with growth equity to expand its business. ONRAD is headquartered in Riverside, California.
OnRamp Access, LLC, a leading provider of co-location services for small to medium sized businesses. The company manages and provisions the infrastructure that houses servers and other core elements of their customers’ IT infrastructure. Headquartered in Austin, Texas, On-Ramp has experienced steady growth with very little customer attrition over the past three years.
ResponseLink, a leading provider of personal emergency response services to seniors and people with disabilities living at home. Housatonic purchased an ownership stake in ResponseLink, enabling the company to spin out from its parent company, Pacific Pulmonary Services. ResponseLink uses a proprietary remote communications device that is monitored continuously.
Second New Associate Joins Firm
Chris Chiou joined Housatonic from GCA Savvian Group, an independent investment bank, where he advised businesses in various growth industries on mergers and acquisitions, as well as capital raising transactions. Previously he was an investment banker at Seven Hills Group and Robertson Stephens. Chiou is a graduate of Duke University, where he majored in biomedical engineering and was on the varsity swimming team. He is the second associate to join Housatonic to focus on outbound sourcing.
“Outbound sourcing resulted in our investment in ONRAD this past year, which further convinced us that adding professionals who spend significant portions of their time proactively identifying industries and businesses that fit our investment strategy is a good tactic,” said Mark Hilderbrand. “As a former investment banker with a track record of finding good opportunities, Chris is a great addition to the team.”
Housatonic Partners is a private equity investment firm founded in 1994 with more than $650 million in capital under management. The firm invests in growing, profitable businesses with highly recurring revenue. Housatonic Partners has backed exceptional management teams in more than 60 small to mid-sized companies over the last 15 years.