Geneva Glen Capital Launch featured in Buyouts Magazine
(Corrects "principals" to "vice presidents" in paragraph 10)
Sept 2 - Private equity professionals are succumbing to the lure of launching their own firms, leading to new business opportunities for investment bankers and other service providers.
Bernard Vaughan of Buyouts magazine reports:
* Upstart firms could have $1B+ for deals
* New business opportunity for i-bankers
* Good time to start with a clean slate
NEW YORK - While many of their peers were on vacation, a number of private equity professionals spent the summer quietly plotting the launch of new buyout firms.
Among them are Altamont Capital Partners, led by Jesse Rogers, the co-founder of San Francisco-based Golden Gate Capital, and New York-based Centre Lane Partners LLC, led in part by three professionals who recently left turnaround specialist Monomoy Capital Partners.
Another new firm, Chicago-based Geneva Glen Capital LLC, was recently launched by Adam Schecter and Jeff Gonyo, former executives with the Chicago-based firms WHI Capital Partners and Wind Point Partners, respectively. Altogether, these three firms are expected to have more than $1 billion available to make acquisitions.
"I was at the point in my career where I wanted to be a founder of a firm and make my own mark in the industry," said Gonyo, of Geneva Glen.
Gonyo is hardly the first to reach this point. The history of private equity is filled with examples of ambitious professionals spinning out of established firms, lured by the prospect of having more control over investment strategy, and keeping a larger share of profits on their deals.
The aftermath of a recession can be a particularly good time to launch a buyout shop. Start-up firms don't have struggling portfolio holdings to hold them back, while their early acquisitions can benefit from the economic recovery.
Generating deal flow is the easy part for new buyout firms. Investment banks and intermediaries are only too happy to try to ply another client with potential investment ideas.
The big challenge for start-up buyout shops is finding backing. Their best hope is to find endowments, foundations, pension funds and other institutional investors with an appetite for the small, tightly defined transactions in which emerging managers tend to specialize.
Altamont Capital is seeking as much as $450 million for its debut fund. Rogers, who prior to co-founding Golden Gate Capital was the founder and worldwide head of Bain & Co's private equity group, has recruited two former principals from Golden Gate to join him, according to peHUB, a Website published by Thomson Reuters. Rogers could not be reached for comment. Previously, he has focused on investments in consumer products, retail, financial services, media, and transportation.
Centre Lane is the new private equity arm of ZM Equity Partners LLC, which manages a total of $500 million. In August, Mayank Singh and Nathan Richey, who were vice presidents at Monomoy Capital, and David Kreilein, an operating partner at Monomoy Capital, left to help lead Centre Lane. Richey declined to comment. The firm seeks to invest $3 million to $50 million in companies generating revenues between $20 million and $500 million, according to its marketing material. Kenneth Lau and Quinn Morgan, former executives at D.B. Zwirn & Co LP, founded ZM Equity in 2007.
Geneva Glen will get most of its capital from one investor, Wanxiang America Corp, an arrangement Schecter and Gonyo believe will relieve them from fund-raising pressure and allow them to focus on investing. The firm will invest as much as $40 million in companies with EBITDA between $3 million and $20 million in business and consumer services, consumer products and food, and niche manufacturing, among other sectors.
(Buyouts Magazine is a Thomson Reuters publication. Contact Editor in Charge David Toll at email@example.com; for further information see www.buyoutsnews.com)
About Geneva Glen Capital, LLC
Geneva Glen Capital is a Chicago-based private equity firm that invests in proven private companies with leading market positions, significant growth potential, and stable cash flows. GGC will consider control buyout transactions as well as minority growth capital investments and targets companies headquartered in the U.S. or Canada with EBITDA between $3 million and $20 million. The firm works closely with management teams to establish and execute on a clearly defined value creation and growth plan. The principals of GGC have extensive private equity experience and a family office-oriented fund structure which provide the ability to be flexible, creative and, if appropriate, long-term investors.
Geneva Glen Capital, LLC
123 North Wacker Drive, Suite 820 Chicago, IL 60606