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Search Funds
The search fund vehicle is a proven two-stage model for private equity investment. In the first stage, a group of professional investors back a high caliber operating manager to search for a target company to acquire. In the second stage, upon closing the acquisition, the operating manager becomes the CEO of the company. The goal is to place an excellent, motivated manager in an attractively valued company and fully align their interests with those of investors.
Search fund target companies tend to be in the $10-50 million transaction price range, typically requiring $5-10 million of equity or capital. Search fund managers typically target companies with sustainable market positions, histories of stable cash flows and long term opportunities for improvement and growth.
The search fund vehicle has been a very productive source of investment opportunities for Housatonic Partners. In addition to the eight current portfolio companies that originated as search funds, the partnership also has investments in several active search funds. We seek to build long-term relationships with our search fund entrepreneurs, working closely with them throughout the search process.
Representative Search Fund Investments
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Access Information Management:: In December of 2004, Housatonic Partners made an investment in Access Information Management, a San Francisco Bay Area based, full service records and information management firm. Since that date, Access has acquired over twenty-five records management companies and now operates in markets throughout the U.S. The company provides off-site records storage, electronic data protection, secure destruction services and digital imaging solutions.
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Asurion: Housatonic Partners participated in the original acquisition to form Asurion in 1995, and invested in the company again in 2000. Now with over 50 million customers, Asurion has grown to be the North American leader in enhanced services for the wireless industry, including handset insurance, data protection and roadside assistance. In April 2001, Housatonic sold a portion of its interest in Asurion to a financial buyer.
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Beacon Fire & Safety: Based in the San Francisco Bay Area, Beacon Fire & Safety provides sales and service of fire safety equipment, including portable extinguishers, restaurant hood systems, and sprinkler systems. In January 2006, Beacon was sold to Cintas Corporation (NASDAQ: CTAS).
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Carillon Assisted Living: Housatonic invested in the founding of Carillon Assisted Living as the result of a search fund in 1996. Based in Raleigh, the company has developed and operates assisted living communities for seniors in locations throughout North Carolina.
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Event Rentals: In July of 1997, Housatonic made an investment in Event Rentals, Inc., a company established to pursue a regional consolidation in the party supply rental industry. ERI made acquisitions markets in the western U.S. including San Diego, one in San Francisco and one in Los Angeles. Housatonic sold its interest in ERI to a financial sponsor in May 2003.
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Continental Fire & Safety Services: Continental Fire & Safety Services, LLC provides sales and service of fire safety equipment, including portable extinguishers, restaurant hood systems, exit lights, first aid kits, and sprinkler systems. The company serves markets in the eastern U.S. including New Jersey and Maryland/D.C.
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HemaSource : In February of 2010, Housatonic invested in HemaSource, the leading provider of medical consumables to the plasma and whole blood collection industries. Through its proprietary online ordering and inventory management platform, HemaSource reduces costs and maximizes efficiency for its customers.
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OnRamp Access, LLC : In September 2009, Housatonic participated in the acquisition of OnRamp, LLC. Founded in 1994 and based in Austin, Texas, OnRamp is a leading provider of data center co-location services, managed servers, and virtual private clouds for small to medium businesses as well as larger customers.
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VIU Media: In December of 1999, Housatonic Partners invested in QMC Media, Inc., dba VIU Media, based in San Juan, Puerto Rico. The company grew to become Puerto Rico’s largest provider of bulletin-sized billboards. In February 2006, the company was sold to Lamar Advertising Company (NASDAQ: LAMR).
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Wind River Environmental: In November of 1999, Housatonic made an investment in Wind River Management. Based in Hudson, MA, Wind River is the leading provider of non-hazardous liquid waste disposal services in the northeastern U.S.
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