DFW Capital Partners has sponsored a recapitalization of Venio LLC, a New York-based provider of asset recovery services. No financial terms were disclosed, except that Praesidian Capital Investors provided approximately $16.5 million of debt.
Praesidian Capital Investors, a leading provider of mezzanine capital for small and mid-sized companies, has invested approximately $16.5 million of debt to support the recapitalization of Venio, LLC (“Venio”) by DFW Capital Partners and management.
Headquartered in New York City, Venio is a leading provider of asset recovery services, specializing in uniting heirs with unclaimed assets held by banks, corporations and mutual fund companies. Venio provides its services to over 400 banks, individual companies, transfer agents and mutual fund companies. Venio conducts research and investigation on behalf of clients to locate the owner’s dormant accounts and provide updated contact information. For those account owners who are deceased, Venio attempts to locate heirs and offers to recover unclaimed assets for a contingent fee that is paid when the assets are restored.
“Every year, hundreds of millions in unclaimed assets are escheated to state governments following a specified dormancy period. Venio provides a solution to this problem for both its clients and the assets’ rightful heirs,” said Jason Drattell, Managing Partner at Praesidian. “Clients retain millions of dollars in account balances, at no cost, while heirs are given access to assets which would have otherwise been escheated to state governments.”
“The asset recovery sector is quite stable and has demonstrated growth even in challenging economic times,” said Brett Prager, Partner at DFW. “A strong business like Venio—with its diverse group of clients and now strong financial support—has a real opportunity to further establish itself as a leader.”
“Praesidian and DFW have shown great commitment to Venio’s success throughout our association with them, and I know that they share my excitement about the prospects for Venio in the coming years,” said Charles Ginsberg, Founder of Venio’s predecessor. “We are confident that we have found the right partners to take this business to the next level of growth and success.”
About Praesidian Capital Investors
Praesidian Capital partners with small and mid-sized businesses, providing private mezzanine capital. Praesidian invests in established, historically profitable companies often in connection with a management/leveraged buyout, recapitalization or refinancing. Based in New York City, Praesidian manages over $400 million in committed capital. For more information, visit www.praesidian.com.
About DFW Capital Partners
DFW Capital Partners was founded in 1983 to provide private equity capital to high-growth middle-market service companies. DFW actively manages several pools of committed private capital, with over $200 million in aggregate commitments. DFW’s funding sources include institutional investors as well as high net worth individuals and family offices. DFW focuses on control private equity investments in service companies taking advantage of the accelerating trend toward outsourcing of both non-core functions and entire business processes. For more information please visit www.dfwcapital.com.
About Venio, LLC
Headquartered in New York City, Venio is a leading provider of asset recovery services, specializing in uniting heirs with unclaimed assets held by banks, corporations and mutual fund companies. The Company is retained by these institutions to locate owners of dormant accounts and return unclaimed assets, which would have otherwise been escheated to state governments, to their rightful heirs. Venio is composed of three separate operating companies, Jaisan LLC, SMS Group, LLC and SMS-VISS, LLC and services over 400 banks, individual companies and transfer agents and mutual fund companies. For more information, visit www.venio.com.