Harbert Manages First Close on $57.5M –

After 19 months of fund raising, Birmingham, Ala.-based Harbert Management Corp. in April saw a first close on its debut buyout fund, and this month made the fund’s first platform acquisition-the $70 million buyout of telecommunications company Unity Communications.

Harbinger Private Equity Fund I closed on $57.5 million in late April. According to Charles Shook, a vice president at the firm, the fund, which was launched in September 1997 (BUYOUTS Sept. 1, 1997, p. 3), has a target of between $75 million and $100 million, and the firm is anticipating a final close in late summer.

The first closing includes money from the Harbert family and institutional investors that Mr. Shook declined to name.

Mr. Shook said Harbinger will focus on leveraged buyouts with values of between $25 million and $100 million, mostly in the Southeast region.

Tackling Telecom in Florida

On June 2, Harbert led a group of equity investors on the buyout of Unity, committing a total of $18.5 million in equity to the deal. Newcourt Capital provided senior and subordinated debt, as well as a small equity piece.

Morgan Keegan & Co. advised Unity on the transaction.

Unity, based in Jackson, Miss., has annual revenue of approximately $40 million. The company provides bundled telecommunications services for small businesses in the Southeast. Unity’s business plan involves acquiring single-service companies and cross-training the management to begin selling additional telecommunications services, Mr. Shook said.