Huron Capital Partners has hired Douglas Sutton and Charles Sheridan, formerly senior investment managers in the U.S. private equity group of the Bank of Montreal (BMO). Huron, a Detroit-based private equity firm, said Sutton and Sheridan will lead a new “flex” equity strategy aimed at less-than-majority investments in lower mid-market companies. The strategy is similar to the one pursued by Sutton and Sheridan at BMO. Sutton joins Huron as a partner, while Sheridan joins as a principal.
Photo: Douglas Sutton, partner at Huron Capital Partners
Huron Capital Partners Launches “Flex” Equity Strategy
Adds Seasoned Team to Pursue Non-Control Investments
DETROIT, April 7, 2016 /PRNewswire/ — Huron Capital Partners LLC (“Huron Capital”) announced today an expanded strategy aimed at less-than-majority investments built on the firm’s lower middle-market heritage and current industry focus areas. The “Flex” Equity strategy will be led by seasoned investment managers Douglas Sutton and Charles Sheridan, who joined Huron Capital after 13 years at BMO Private Equity (U.S.), Inc., where they led a similar investment approach focused on the lower middle-market.
The Flex Equity strategy serves as a complementary extension of Huron Capital’s strong franchise in the lower middle-market and will focus on the same types of companies within Huron Capital’s core industry sectors of business services, consumer products & services, specialty manufacturing and healthcare. The initiative will utilize Huron Capital’s existing infrastructure, operational resources and investment processes, while capitalizing on attractive non-control opportunities already being sourced through the firm’s proprietary value sourcing model.
“We feel we’ve assembled an all-star team to take advantage of this great market opportunity in structured equity. We plan to capitalize on our firm’s depth of experience in the lower middle-market, particularly our extensive deal sourcing and operational resources,” said Brian Demkowicz, Managing Partner at Huron Capital. “Our Flex Equity strategy is a natural extension of our business and I believe strengthens Huron Capital’s position as a leader in lower middle-market private equity.”
“We have a long history with Doug and Charlie dating back to 2003 and have been impressed with their investment track record and level of deal flow. We’ve teamed up with them on ten Huron Capital transactions and have reviewed dozens of other opportunities together. We have high confidence in their fit with our culture and investment philosophy,” said Michael Beauregard, Senior Partner at Huron Capital.
Huron’s Flex Equity strategy will be managed by Douglas Sutton, a 30-year industry veteran who has invested more than $400 million utilizing a similar strategy on behalf of BMO Private Equity and Bank One Corporation where he was the Managing Director and a co-founder of private investment programs at both firms. He will be joined by Charles Sheridan who worked closely with Sutton at Bank One and BMO Private Equity for the past 15 years to invest in profitable, growing, lower middle-market companies in a manner consistent with the strategy that has been pursued by Huron throughout its 17-year history.
Since inception, Huron Capital has adhered to a disciplined investment strategy and operations-focused approach. To date, the firm has acquired 112 companies, including 35 platform companies and 77 add-on acquisitions, representing over $1.5 billion in combined transaction value. Like Huron Capital’s existing investment criteria, the structured equity (i.e., non-control) strategy will target buy-and-build investments including equity recapitalizations, family succession transactions and corporate carve-outs of companies with revenue of $20 million to $200 million in the U.S. and Canada.
“Huron Capital’s vision to pursue the Flex Equity strategy fills a void in the lower middle-market for flexible, custom-tailored minority-equity solutions and we’re extremely bullish on the opportunity,” said Douglas Sutton, Partner at Huron Capital. “We have the unique ability to stay laser-focused on less-than-majority investments, while tapping Huron’s experience, reach and reputation to build what we expect will be a sizable portfolio of investments.”
About Huron Capital Partners LLC
Based in Detroit, Huron Capital is an operationally-focused private equity firm with a long history of growing lower middle-market companies through our proprietary ExecFactor® buy-and-build investment model. We prefer complex situations where we can help companies reach their full potential by combining our operational approach, substantial capital base, and transaction experience with seasoned operating executives. Founded in 1999, Huron Capital has raised over $1.1 billion in capital through four committed private equity funds and invested in over 100 companies, and our portfolio companies have employed over 11,000 people throughout North America. The Huron Capital buy-and-build investment model includes equity recapitalizations, family succession transactions, market-entry strategies, corporate carve-outs, and management buyouts of companies having revenues up to $200 million. Huron Capital targets both majority and less-than-majority equity stakes in fundamentally-sound companies that can benefit from the firm’s operational approach to creating value. Huron Capital’s sector focus includes business services, consumer products & services, specialty manufacturing and healthcare. For more information, please visit www.huroncapital.com.
Photo courtesy of Huron Capital Partners