Search Funds

The search fund vehicle is a proven two-stage model for private equity investment. In the first stage, a group of professional investors back a high caliber operating manager to search for a target company to acquire. In the second stage, upon closing the acquisition, the operating manager becomes the CEO of the company. The goal is to place an excellent, motivated manager in an attractively valued company and fully align their interests with those of investors.

Search fund target companies tend to be in the $10-50 million transaction price range, typically requiring $5-10 million of equity or capital. Search fund managers typically target companies with sustainable market positions, histories of stable cash flows and long term opportunities for improvement and growth.

The search fund vehicle has been a very productive source of investment opportunities for Housatonic Partners. In addition to the eight current portfolio companies that originated as search funds, the partnership also has investments in several active search funds. We seek to build long-term relationships with our search fund entrepreneurs, working closely with them throughout the search process.

Representative Search Fund Investments

Access Information Management

Access Information Management: In December 2004, Housatonic Partners made an investment in Access Information Management, a San Francisco Bay Area based, full service records and information management firm. Since that date, Access has acquired over twenty-five records management companies and now operates in markets throughout the U.S. The company provides off-site records storage, electronic data protection, secure destruction services and digital imaging solutions.

Asurion

Asurion: Housatonic Partners participated in the original acquisition to form Asurion in 1995, and invested in the company again in 2000, 2009 and 2012. Now with over 50 million customers, Asurion has grown to be the North American leader in enhanced services for the wireless industry, including handset insurance, data protection and roadside assistance. In April 2001, July 2007 and March 2016, Housatonic sold a portion of its interest in Asurion to a financial buyer.

Beacon Fire & Safety

Beacon Fire & Safety: Based in the San Francisco Bay Area, Beacon Fire & Safety provides sales and service of fire safety equipment, including portable extinguishers, restaurant hood systems, and sprinkler systems. In January 2006, Beacon was sold to Cintas Corporation (NASDAQ: CTAS).

Boston Common Press

Calo Programs: In August 2016, Housatonic invested in Calo Programs, a leading behavioral health provider specializing in serving preteens, teens and young adults who have suffered the effects of early trauma. Calo offers clients a comprehensive network of clinical and therapeutic programs including residential treatment centers, young adult transition programs, outpatient centers and wilderness therapy programs.

Carillon Assisted Living

Carillon Assisted Living: Housatonic invested in the founding of Carillon Assisted Living as the result of a search fund in May 1996. Based in Raleigh, the company has developed and operates assisted living communities for seniors in locations throughout North Carolina. In November 2006, the company completed a successful sale/leaseback transaction with a large REIT.

Classic Party Rentals

Event Rentals: In July 1997, Housatonic made an investment in Event Rentals, Inc., a company established to pursue a regional consolidation in the party supply rental industry. ERI made acquisitions markets in the western U.S. including San Diego, one in San Francisco and one in Los Angeles. Housatonic sold its interest in ERI to a financial sponsor in May 2003.

Continental Fire & Safety Services

Continental Fire & Safety Services: Continental Fire & Safety Services, LLC provides sales and service of fire safety equipment, including portable extinguishers, restaurant hood systems, exit lights, first aid kits, and sprinkler systems. The company operates in New Jersey greater Washington, D.C. markets. In February 2012, Continental was sold to a financial buyer.

HemaSource: In February 2010, Housatonic invested in HemaSource, the leading provider of medical consumables to the plasma and whole blood collection industries.  Through its proprietary online ordering and inventory management platform, HemaSource reduces costs and maximizes efficiency for its customers. In July 2014, Hemasource was sold to a financial buyer.

VIU Media

OnRamp Access: In September 2009, Housatonic participated in the acquisition of OnRamp Access, LLC.  Founded in 1994 and based in Austin, Texas, OnRamp is a leading provider of data center co-location services, managed servers, and virtual private clouds for small to medium businesses as well as larger customers.

VIU Media

VIU Media: In December 1999, Housatonic Partners invested in QMC Media, Inc., dba VIU Media, based in San Juan, Puerto Rico. The company grew to become Puerto Rico’s largest provider of bulletin-sized billboards. In February 2006, the company was sold to Lamar Advertising Company (NASDAQ: LAMR).

Wind River Environmental

Wind River Environmental: In November 1999, Housatonic made an investment in Wind River Environmental, LLC. Based in Hudson, MA, Wind River is the leading provider of non-hazardous liquid waste disposal services in the northeastern U.S. In July 2014, Wind River was sold to a financial buyer.

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