Frontenac Company closes $250 mln for tenth fund

Chicago-based private investment firm Frontenac Company has raised $250 million in the final close of its tenth private equity fund. M2O Private Fund Advisors served as advisor on the fund.

PRESS RELEASE

CHICAGO – July 10, 2014 – Frontenac Company, a leading private investment firm focused on investing in lower middle market, family held or owner operated businesses, today announced the final closing of its tenth private equity fund, Frontenac X Private Capital, L.P., at the target of $250 Frontenac X Private Capital is off to a fast start, having completed two investments and already returned more than 50 percent of the fund’s invested capital to date through dividend recapitalizations at both companies.

Frontenac Company focuses on investing in lower middle market buyout transactions in the business services, industrial, food and healthcare sectors. Frontenac works in partnership with proven operating leaders, through its CEO1ST® approach, to identify, acquire, and build market leading companies through transformational acquisitions and operational excellence. The firm has built a leading franchise working with owners of mid-sized businesses, almost always families or founders, as they address complex transition issues of liquidity, management enhancement, and growth planning.

“We appreciate the support we received from our existing family and institutional limited partners, and are also pleased with the relationships we have developed with an outstanding group of new investors who support our well-defined investment approach and our focus on growth and operational enhancements,” said Paul Carbery, a Managing Partner at Frontenac Company. “We added several new large institutions and family offices to our investor group.”

The first investment in Frontenac X Private Capital, Portfolio General Management Group is a provider of outsourced financial services to automobile dealerships. Specializing in aftermarket, extended warranty and vehicle service contract programs and headquartered in Irvine, CA, it completed a dividend recapitalization in February 2014. The fund’s second investment, Columbus, OH-based Ohio Transmission Corporation, is a leading industrial distributor and expert technical support for industrial pumps, fluid power, finishing, power transmission, bearings and electrical applications serving a wide range of end-markets from 20 branch locations. The company completed an accretive add-on acquisition earlier this year and concluded its dividend recapitalization in July 2014.

“We are pleased that both investors and business owners are attracted to our targeted approach to finding quality family and founder owned franchises in our four key industry sectors,” stated Walter Florence, a Managing Partner at Frontenac Company. “Our CEO1ST process has been effective in sourcing the fund’s first two investments and in generating a pipeline of additional opportunities.The strong performance of our initial investments supported the successful raising of the fund.”

The firm boasts a senior investment team of seven, bolstered by the recent promotions of Ronald Kuehl and Michael Langdon to Managing Director.

M2O Private Fund Advisors LLC advised on the formation and placement of the fund, and Winston and Strawn, LLP served as legal counsel.

About Frontenac Company
Frontenac Company is a leading private investment firm focused on investing in lower middle market buyout transactions in the business services, industrial, food and healthcare sectors.

Frontenac works in partnership with proven operating leaders, through our executive-centric approach called CEO1ST®, to identify, acquire, and build market leading companies through transformational acquisitions and operational excellence. The firm has built a leading franchise working with the owners of mid-sized businesses, almost always families or founders, as they address complex transition issues of liquidity, management enhancement, and growth planning.

Based in Chicago, Frontenac has completed over 25 buyout transactions, and nearly 60 add-on acquisitions, since 2000. For more information, please visit www.frontenac.com.

Leave a Reply

PEHUB Community

Join the 12506 members of peHUB to make connections, share your opinion, and follow your favorite authors.

Join the Community

Look Who’s Tweeting

PE HUB News Briefs

RSS Feed Widget

VCJ Headlines (subscribers only)

RSS Feed Widget

Buyouts Headlines (subscribers only)

RSS Feed Widget

Reuters VC and PE feed

RSS Feed Widget