Franklin Square Capital Partners has provided undisclosed funding to back the merger of iSqFt and CMD Group. Based in Norcross, Georgia, Warburg Pincus-based CMD provides construction information in North America while Cincinnati-based Isqft, which is backed by Genstar Capital, provides software and bid information for the commercial construction industry.
PHILADELPHIA, Aug. 24, 2015 /PRNewswire/ — Franklin Square Capital Partners, the largest manager of business development companies (BDCs), announced the upsizing of its senior secured investment in Blueprint Sub, Inc. (doing business as iSqFt), a Cincinnati, OH headquartered provider of software and bid information to the commercial construction industry. The upsized commitment finances the merger of iSqFt and CMD Group, a Norcross, GA headquartered provider of construction information.
The financing was provided by FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II (FSIC II) and FS Investment Corporation III (FSIC III), BDCs managed by affiliates of Franklin Square and sub-advised by GSO / Blackstone Debt Funds Management LLC (GDFM), an affiliate of GSO Capital Partners LP (GSO).
The combination of iSqFt and CMD Group brings together businesses with complementary strengths in different segments of the construction sector, creating an organization with an enhanced product offering and a strong technology platform focused on innovation. The combined organization will provide comprehensive construction data and software solutions for customers across North America.
iSqFt is a portfolio company of Genstar Capital, a San Francisco, CA based middle market private equity investment firm focused on the software, healthcare, financial services and industrial technology sectors. iSqFt is also a portfolio company of Warburg Pincus, a global private equity firm focused on growth investing, via the merger with CMD Group.
“The upsizing of our investment in iSqFt demonstrates the flexibility of our financing capabilities as well as our commitment to our portfolio companies,” said Michael C. Forman, Chairman and Chief Executive Officer of FSIC, FSIC II and FSIC III.
“iSqFt and CMD Group are a natural business combination with highly complementary offerings,” commented Brad Marshall, Senior Managing Director at GSO. “We believe the synergies they share will create significant opportunities.”
“The Franklin Square and GSO team has been a reliable financing partner for our company. This merger represents the second strategic transaction that Franklin Square and GSO have supported for us,” said Dave Conway, President and Chief Executive Officer of iSqFt.
FSIC is a publicly traded BDC focused on providing customized credit solutions to private middle market U.S. companies. FSIC seeks to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies to achieve the best risk-adjusted returns for its investors. In connection with its debt investments, FSIC may receive equity interests such as warrants or options.
FSIC is advised by FB Income Advisor, LLC, an affiliate of Franklin Square, and is sub-advised by GDFM, an affiliate of GSO. GSO, with approximately $81.3 billion in assets under management as of June 30, 2015, is the credit platform of Blackstone, one of the world’s leading managers of alternative investments. For more information, please visit www.fsinvestmentcorp.com.
About FSIC II and FSIC III
FSIC II and FSIC III are publicly registered, non-traded BDCs sponsored by Franklin Square. FSIC II and FSIC III focus primarily on investing in the debt securities of private companies throughout the United States, with the investment objectives of generating current income and, to a lesser extent, long-term capital appreciation for their investors. FSIC II and FSIC III are advised by affiliates of Franklin Square and are sub-advised by GDFM. For more information, please visit www.franklinsquare.com.
About Franklin Square
Franklin Square is a leading manager of alternative investment funds designed to enhance investors’ portfolios by providing access to asset classes, strategies and asset managers that typically have been available to only the largest institutional investors. The firm’s funds offer “endowment-style” investment strategies that help construct diversified portfolios and manage risk. Franklin Squarestrives not only to maximize investment returns but also to set the industry standard for best practices by focusing on transparency, investor protection and education for investment professionals and their clients.
Founded in Philadelphia in 2007, Franklin Square quickly established itself as a leader in the world of alternative investments by introducing innovative credit-based income funds, including the industry’s first non-traded BDC. As of June 30, 2015, the firm managed approximately $16.8 billion in total assets, including $15.4 billion in BDC assets, making it the largest manager of BDCs. For more information, please visit www.franklinsquare.com.
Cincinnati-based iSqFt is a leading software-as-a-service company, serving the commercial construction industry by offering its customers access to a network that connects hundreds of thousands of general contractors, subcontractors, manufacturers and suppliers. iSqFt helps its customers thrive by offering the information and tools they need to work more efficiently and profitably. For more information about iSqFt and its applications, visit www.isqft.com.
About CMD Group
CMD is a leading North American provider of construction information. CMD’s diverse portfolio of innovative products and technologies includes national, regional and local project leads, marketing solutions and market intelligence to provide insight to construction industry professionals throughout the U.S. and Canada. Visit the CMD website at www.cmdgroup.com.