Boathouse Capital Closes $120M Debt Fund

Boathouse Capital, a firm based in suburban Philadelphia, has closed on $120 million for its new debt fund, which will focus on mezzanine debt and equity in lower middle market companies. The firm will invest between $2 million and $12 million into companies with a minimum of $2 million EBITDA.

Boathouse Capital announced today the final closing of its debut fund with over $120 million in total capital commitments. Based in suburban Philadelphia, Boathouse Capital invests mezzanine debt and equity in lower middle market companies for the purpose of:

– Leveraged Recapitalizations
– Managment or private equity sponsored buyouts
– Refinancings
– Growth Capital

Boathouse’s investing activities are led by general partners Ken Jones, Bill Dyer, Steve Gord and Chong Moua, who as a team since 2000 have invested over $1 billion in middle market companies across the U.S. Boathouse’s general partners collectively have over 50 years of experience investing in middle market firms, both owned by PE firms and by owner-operators.

Boathouse seeks to invest $2 million – $12 million into companies with a minimum of $2 million of EBITDA. The fund will consider most industries, but most often backs companies with proven, repeatable revenue models and a niche product focus.

Since beginning investment operations, Boathouse has invested $35 million in six companies:

Pilgrim Software provides compliance and risk management software to firms in highly regulated industries, including life sciences, food and beverage, and manufacturing. For nearly 20 years, the company’s software has helped companies facing complex and burdensome regulation manage an increasingly intricate regulatory and compliance environment. Pilgrim offers its product to customers on both as Software-as-a-Service (“SaaS”) and perpetual license basis.

Boathouse invested an undisclosed amount of mezzanine debt in conjunction with the purchase of the company by Boston-based Riverside Partners.

AvidXchange is a leading SaaS-based provider of accounts payable management solutions for mid-sized companies in the real estate, banking, and healthcare industries. AvidXchange’s product suite integrates with a customer’s existing accounting systems to centralize and streamline accounts payable workflow. AvidXchange enjoys outstanding customer satisfaction and retention rates.

Boathouse invested $5.1million of mezzanine debt in AvidXchange to facilitate its acquisition of certain assets of EnergySolve, a complementary energy payables management software and consulting company based in New Jersey, and also to fund future growth initiatives.

PTG Enterprises provides taxi, limousine, and para-transit services in the greater Palm Beach, Clearwater, and Jacksonville areas of Florida. The company has the leading market share position in all of its markets and enjoys numerous exclusive vendor contracts with area airports, hotels, and businesses.

Boathouse invested $8.7million of mezzanine debt in PTG Enterprises to acquire the assets of Yellow Cab Service Corporation of Florida and its affiliates and subsidiaries.

Pleatco is a leading manufacturer of water filtration products used in the pool and spa industry. Pleatco’s primary products are filter cartridges and grids used for diatomaceous earth filtration. Pleatco is the leader in these markets and is known for quality and innovation. The company has an outstanding reputation among consumers and retailers thanks to a proprietary design that maximizes water flow and minimizes energy consumption.

Boathouse invested $5.1 million of mezzanine debt to recapitalize Pleatco’s balance sheet and to fund future growth.

Platinum Protection sells, installs, and services residential security alarm systems. The company’s sales representatives and installation technicians follow a highly successful door-to-door sales strategy during the summer months and provide superior post-sales customer service. Platinum is currently the third largest summer sales company in the industry.

Boathouse invested an undisclosed amount of debt in Platinum to help fund the business’ growth plans.

Boathouse invested in a service provider to the restaurant and the foodservice industries. Boathouse supported Audax Group’s acquisition of the company by investing an undisclosed amount of mezzanine debt and equity to facilitate the transaction.