Company Overview
Superior Capital Partners, headquartered in Detroit, Michigan, makes control equity investments in lower middle market companies that are underperforming or undercapitalized. Superior targets opportunities where the combination of an improved capital base and exceptional management will lead to profitable gro wth and out-sized returns. Superior focuses on companies with revenues between $10 and $150 million that are based in the Midwest and eastern United States. The Superior team, along with its Executive Advisors, works closely with the companies to restructure and position them for growth.
Situation
Superior was evaluating options to provide liquidity to the limited partners in The Superior Fund, L.P., a 2008 vintage fund, and retained Griffin Financial Group to act as its exclusive secondary advisor and placement agent. Griffin advised Superior to run a secondary tender offer process to provide a liquidity option to Fund I limited partners as well as to find a new institutional investor willing to commit new primary capital to Superior, thus allowing Superior to continue to manage the existing Fund I portfolio and make new investments.
Solution
Griffin initiated a competitive process to identify an institutional investor willing to purchase the limited partner interests of all Fund I investors and also commit fresh primary capital to new investment opportunities generated by Superior’s investment team. 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 80% of the Fund I limited partners accepted the offer. This successful outcome provided liquidity to Fund I investors, and allows Superior the opportunity to manage the remaining Fund I portfolio and commit primary capital to new investments.
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.
