Company Overview
Larsen MacColl Partners (“LMP”), headquartered in Wayne, Pennsylvania, makes control equity investments in lower middle-market companies that have strong leadership and growth prospects. LMP invests in businesses with revenues between $5 and $50 million across a variety of industries. LMP partners with management teams to expand their human and financial capital in order to grow their businesses. LMP utilizes strategic acquisitions along with organic growth to create returns for investors, rather than rely of high leverage and financial engineering.
Situation
Larsen MacColl Partners, L.P. (“Fund I”) was a successful 2008 vintage fund with two remaining portfolio companies. One company made up the majority of the Fund I NAV. LMP felt that there was significant upside in the company, but that it would take additional time to fully realize. LMP retained Griffin Financial Group, LLC (“Griffin”) to act as its exclusive secondary advisor to identify a new institutional investor who would provide a liquidity option to Fund I limited partners as well as support an extended Fund I timeframe to allow the Fund I portfolio company an opportunity to reach its full potential.
Solution
Griffin initiated a competitive process to identify an institutional investor willing to purchase the limited partner interests of Fund I investors interested in selling their positions and extend the life of Fund I. Griffin approached a broad group of institutional investors during the process. After selecting the successful bidder and upon conclusion of the tender offer process, approximately 81% of the Fund I limited partners accepted the offer to sell. In addition to buying the limited partner interests, the buyer committed to potentially provide new capital for follow-on investments. This successful outcome provided liquidity to Fund I investors, and allows LMP to continue to manage the remaining Fund I portfolio to maximize its value.
For more information on this transaction, please contact Paul F. Delaney, Senior Managing Director, at 646.254.6397 or Mitch Fenimore, Senior Vice President, at 646.254.6395. For more information on Griffin’s services in general, contact any one of our investment banking professionals.
