H.I.G. Capital has sponsored a recapitalization of TRAKAmerica, a Naples, Fla.-based provider of accounts receivable management services to consumer credit originators and debt buyers. No financial terms were disclosed for the deal, which will result n TRAKAmerica becoming part of an H.I.G. acquisition platform called Reprise Management Group. Greenberg Advisors advised H.I.G. and Reprise on the deal.
H.I.G. Capital, LLC, a leading global private equity firm, has announced that one of its affiliates has completed a successful recapitalization of TRAKAmerica (“TRAK”). Founded in 2000 and based in Naples, Florida, TRAK is a leading provider of Accounts Receivable Management (“ARM”) services to consumer credit originators and debt buyers.
TRAK provides turn-key recovery management solutions for charged-off consumer accounts receivables. TRAK’s services include superior data analytics to identify suit-worthy accounts through the use of proprietary scoring techniques and the management of a nationwide legal network encompassing more than 180 independent law firms. TRAK manages complete legal programs on behalf of its clients, resulting in streamlined workflows and significant cost savings. Leveraging its best-in-class analytical scoring capabilities, TRAK has a lengthy record of partnering with the ARM industry’s leading credit grantors and debt buyers to optimize legal recoveries through rigorous data-driven decision making.
H.I.G. Capital led the transaction, in collaboration with the Reprise Management Group (“Reprise”). Reprise was formed in April 2009 to make strategic investments in premier ARM companies. TRAK is the second acquisition in the past 30 days for H.I.G. and Reprise, and will serve as a platform for future growth in legal inventory management services. Reprise CEO Tim Bauer commented, “Our investment in TRAK is the culmination of a targeted search in the legal services niche. We identified legal inventory management as an attractive, rapidly growing segment of the ARM sector. After visiting several companies in this space, TRAK emerged as the clear leader, offering its customers superior analytical capabilities and access to a talented group of ARM managers.”
The investment by H.I.G. will provide TRAK with additional growth capital while both H.I.G. and Reprise will support TRAK with strategic assistance as it continues to expand its strong presence in the sector.
H.I.G. Capital Managing Director Jeff Zanarini commented, “We are excited to invest in TRAK and partner with Tom Dalessandro and his talented management team. TRAK is a highly differentiated solutions provider with a track record of delivering superior recovery performance to its customers. TRAK is the largest independent player in the legal inventory management space and the best at what they do. Our investment will help TRAK build on its successful legacy.”
TRAK’s management team, led by CEO Thomas Dalessandro and President Vincent Iacono, will continue to hold a significant equity ownership stake in TRAK and is excited about the strong financial backing that H.I.G. provides. Founder Tom Milana Jr. will also continue to hold a significant equity ownership stake in the business. Tom Dalessandro commented, “We’re looking forward to working with H.I.G. and Reprise. The expanded team offers TRAK a unique combination of financial strength and sector expertise. This investment affords TRAK the opportunity to expand our service offerings, fuel growth, and continue to provide our clients with exceptional service.” All of TRAK’s existing management team will remain with the company. Dalessandro added, “This is a great milestone in the history of TRAK. Our customers, suppliers and employees should look forward to continued growth and excellence from our organization.”
Greenberg Advisors, (www.greenberg-advisors.com), a specialist in M&A and strategic advisory in the Accounts Receivable Management sector, represented H.I.G. Capital and Reprise in this transaction.
Founded in 2000 by Thomas Dalessandro and Thomas Milana, Jr., TRAKAmerica is a recovery solutions provider specializing in legal inventory management of charged-off consumer receivables. The Company provides unique turnkey solutions to its clients–primarily credit card issuers and debt buyers–through its proprietary analytical capabilities, vendor management platform, and experienced management team. Headquartered in Naples, Florida, the Company has offices in Richmond, Virginia and Melville, New York.
About Reprise Management Group
Reprise Management Group was formed in April 2009 through a partnership between H.I.G. Capital and Tim Bauer, a 25-year veteran in the ARM sector. Reprise was formed for the specific purpose of acquiring premier ARM service providers and then growing the businesses through a combination of acquisitions and organic growth.
About H.I.G. Capital
H.I.G. Capital is a leading global private equity investment firm with more than $7.5 billion of equity capital under management. Based in Miami, and with offices in San Francisco, Atlanta, Boston, and New York in the U.S., as well as affiliate offices in London, Hamburg and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed service or manufacturing businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes companies with combined revenues in excess of $8 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.