JFLCO wraps up continuation fund, will maintain Northstar Group ownership

J.F. Lehman & Company has closed its first single asset continuation fund.

J.F. Lehman & Company has closed its first single asset continuation fund. This will allow JFLCO to maintain its ownership of Northstar Group. Northstar is a provider of diversified infrastructure and environmental services.

PRESS RELEASE

NEW YORK, Nov. 1, 2021 /PRNewswire/ — J.F. Lehman & Company (“JFLCO”), a leading middle-market private equity firm focused exclusively on the aerospace, defense, maritime, government and environmental sectors, announced the successful closing of its first single asset continuation fund, which will allow the firm to maintain its ownership of NorthStar Group (“NorthStar” or the “Company”) in partnership with management. Strong support from company management, JFLCO’s most recent fund, and a syndicate of longstanding and new institutional partners will provide the resources needed to continue supporting the business’ next phase of growth. Terms of the transaction were not disclosed.

“This transaction is an important milestone in allowing JFLCO and NorthStar to further execute our strategic plan,” said Alex Harman, Chairman of NorthStar and Partner at JFLCO. “NorthStar continues to make a lasting impact in improving sustainability and environmental stewardship, and we are excited to continue to support the company alongside management.”

NorthStar Group was formed in 2020 through the combination of JFLCO portfolio companies NorthStar Group Services (“NGS”) and Waste Control Specialists (“WCS”). Today, the Company is the leading provider of diversified infrastructure and environmental services across four business units: Commercial & Industrial Deconstruction, Nuclear Services, Environmental Services, and Response & Restoration.

Since acquiring NGS in 2017 and WCS in 2018, JFLCO successfully partnered with management to organically growing each business line as well as integrate a strategic acquisition and the combination. Led by CEO Scott State, NorthStar has become a nation-wide platform and a market leader in each of its business segments.

“We’re extremely excited to continue our partnership with JFLCO,” said Scott State. “NorthStar’s mission to safely serve its customers with the highest quality services aligns with JFLCO’s values and culture of being a people-driven organization. Our collective commitment to driving greater sustainability in the U.S. by decommissioning legacy power generation assets, buildings, and facilities to preserve the environment and pave the way for cleaner, more efficient energy sources and infrastructure makes JFLCO an ideal partner for us as we strive to fulfill this mission.”

Glenn Shor, a member of NorthStar’s Board of Directors and Partner at JFLCO, added, “We are grateful for such strong support and the market’s recognition of NorthStar’s unique positioning, positive impacts and growth potential. We are extremely proud of the accomplishments of Scott and his team during our ownership to date and look forward to the next chapter.”

Evercore acted as financial advisor for the equity transaction and Debevoise & Plimpton along with Jones Day served as legal counsel for the transaction. A fairness opinion was provided by Houlihan Lokey.

Macquarie Capital served as lead arranger for the credit facility and Jones Day served as legal counsel related to the debt financing.

About J.F. Lehman & Company, Inc.
Founded in 1992, J.F. Lehman & Company is a leading middle-market private equity firm focused exclusively on the aerospace, defense, maritime, government and environmental sectors. The firm has offices in New York and Washington, D.C.
For more information about J.F. Lehman & Company, please visit www.jflpartners.com.