Recapitalizations in 2021

Chicago-based private equity firm Onward Capital completed a recapitalization of Century Drill & Tool Corporation, a Green Bay, Wisconsin distributor and manufacturer of power tool accessories. The recapitalization was funded by Wintrust Financial Corporation, Midwest Mezzanine Funds and Centerfield Capital Partners, with Midwest Mezzanine providing subordinated debt and equity to support the transaction.

Oak Dental Partners (ODP), a rapidly growing dental service organization based in Atlanta, recapitalized Select Dental Partners, a multi-state pediatric dentistry and orthodontics provider headquartered in Fort Mill, South Carolina. The recapitalization closed on December 30, 2021; Marriott & Co. served as exclusive financial advisor to Select Dental and founder Dr. Robert Ellis III will remain in his CEO role under the new partnership.

MCAP Acquisition Corporation, sponsored by Monroe Capital, completed its business combination with AdTheorent, and the combined company began trading on Nasdaq under the ticker ADTH. The transaction included an oversubscribed $121.5 million PIPE anchored by Hana Financial Group, Monroe Capital and Palantir Technologies and provided roughly $100 million of primary proceeds to fund AdTheorent's growth; H.I.G. Growth Partners remains AdTheorent's largest stockholder.

NewSpring Healthcare led a GP-led secondary recapitalization of Verisma on December 22, 2021, providing liquidity to existing investors (including Blue Heron) and admitting new investors via a continuation vehicle. The transaction injects growth capital to accelerate Verisma's healthcare disclosure management technology and platform while Verisma's management team and board remain largely in place.

Main Street Capital Holdings, LLC completed a recapitalization of its portfolio company I-deal Optics, Inc. in partnership with the company's management to provide liquidity and support continued growth. I-deal Optics is a wholesale supplier of prescription eyeglass frames with national reach and a diverse brand portfolio.

Atlantic Street Capital completed a majority recapitalization to acquire a controlling stake in ACIS (Air Conditioning Innovative Solutions), a leading commercial facility services and HVAC provider in Texas. Caltius Equity Partners, ACIS' prior institutional investor, will remain an investor and on the board while Atlantic Street will support growth initiatives including salesforce investment, data-driven operations, geographic expansion and add-on M&A.

Hamilton Robinson Capital Partners, alongside WorkforceQA management, completed a recapitalization of WorkforceQA, a Salt Lake City–based tech-enabled third-party administrator of employee screening and compliance services. Gladstone Capital Corporation provided senior debt and a minority equity investment to support the transaction, which will fund technology and people investments and accelerate WorkforceQA's acquisition strategy.

AEA Investors' Small Business Fund (AEA SBF) recapitalized Monroe Engineering Holdings, LLC alongside management and employee investors. The investment provides liquidity to existing stakeholders and positions Monroe to continue serving OEM customers across aerospace, medical, renewable energy and other industrial end markets.

Symphony Technology Group (STG) completed a majority investment recapitalization of CAI Software, LLC, a provider of ERP, MES and WMS software and related services. Main Street Capital Corporation exited its debt and equity investments as part of the recapitalization and realized a gain while receiving a minority equity stake in the acquirer.

International private equity firm Cinven has agreed to acquire a majority stake in BioAgilytix through a recapitalization, with current investor Cobepa remaining a significant minority investor. GHO Capital has realised its investment and will exit; the transaction will provide funding to support BioAgilytix’s international expansion, capacity and capability investments, and buy-and-build strategy in large-molecule bioanalytical services. BioAgilytix is headquartered in Durham, North Carolina and employs about 870 staff across the United States, Europe and Australia.

Garnett Station Partners has recapitalized PJW Restaurant Group, the parent company of P.J. Whelihan's, providing growth capital to support expansion of its 26-restaurant portfolio across New Jersey and Pennsylvania. Comvest Credit Partners provided an $80 million senior secured credit facility to support the transaction; financial terms of the recapitalization were not disclosed. Founder Bob Platzer and the current management team are partnering with Garnett Station under the recapitalization agreement.

LongueVue Capital, a New Orleans-based private equity firm, has recapitalized Wagner Logistics and provided growth capital to support the 3PL's continued expansion. Wagner Logistics, headquartered in North Kansas City, Missouri, operates 24 facilities across 13 states with over 7 million square feet of warehouse space and 650+ employees, serving customers across industries including aerospace & defense, automotive and direct-to-consumer.

On December 16, 2021, Interlang, Inc. d/b/a Montgomery DME (a portfolio company of Monument MicroCap Partners) recapitalized Premier Medical Equipment & Supply. Premier, based in Colton, California, provides durable medical and home medical equipment rentals to hospice and home health providers in San Bernardino County and other parts of Southern California; the transaction expands MDME's geographic footprint and resources.

Main Street Capital Corporation completed a $14.6 million growth capital investment and minority recapitalization in Johnson Downie, LLC, a Houston-based provider of lateral partner placements and retained partner-level recruiting services for law firms across Texas. The financing comprised first-lien senior secured term debt and a direct minority equity investment; Main Street partnered with an unnamed co-investor and the Company's existing owner/management team to facilitate the transaction.

Leonard Green & Partners and funds managed by Harvest Partners have purchased equity in Convergint Technologies from a fund managed by Ares Management and other existing shareholders. Ares remains a financial partner alongside LGP and Harvest as the transaction recapitalizes Convergint to support continued growth, geographic expansion, and add-on acquisitions.

Chicago-based private equity firm Benford Capital Partners has formed Pasture Brands Holdings, LLC to recapitalize Farmers Hen House, a Kalona, Iowa–based specialty egg producer. CEO Ryan Miller will remain in place and Benford plans to invest in sales, operations, product development and marketing while pursuing add-on acquisitions to grow the platform.

Seaside Equity Partners completed a majority recapitalization of Cascade Healthcare Services in December 2021, acquiring the company from majority owner Evolution Capital Partners. Cascade, headquartered in Seattle, is a technology-enabled provider of certification training and continuing education to healthcare professionals across the Western U.S.; Seaside plans to invest in the platform's technology and pursue complementary service and content acquisitions to drive growth.

Rockwood Equity Partners completed a recapitalization of Pase Environmental, partnering with founder and president Rina Kabouk to establish Pase as the first platform of Rockwood’s Fund IV. Based in Parker, Colorado, Pase provides erosion control and stormwater remediation services across residential, commercial and municipal markets; the deal is intended to fund growth initiatives and build underlying infrastructure using Rockwood’s operating system.

Quad-C Management has recapitalized and purchased MNX Global Logistics from Audax Private Equity, with terms not disclosed. MNX, headquartered in Long Beach, California, will continue to be led by CEO John Labrie and his senior team while Quad-C looks to broaden service offerings, pursue strategic acquisitions, and accelerate organic growth across industry verticals and geographies.

Prairie Capital VII, LP (Prairie Capital) completed a recapitalization of Conscious Discipline, partnering with founder Dr. Becky Bailey and management to support the company's next phase of growth. Prairie will provide company-building capital to accelerate sales, marketing, technology, product development and to pursue add-on acquisitions within the social-emotional learning (SEL) and education market.

L2 Capital Partners recapitalized YakAttack, a vertically integrated designer and U.S. manufacturer of kayak fishing accessories headquartered in Farmville, Virginia. Salem Investment Partners and Oxer Capital provided debt financing and co-invested; terms were not disclosed. L2 said it will partner with founder Luther Cifers and management to expand product development, sales channels and distribution.

Main Street Capital Corporation led a $42.2 million financing package (first-lien senior secured term debt plus a direct equity investment) to recapitalize Valley Veterinary Clinic, LLC d/b/a Valley Vet Supply. The transaction included a revolving credit facility from Main Street and co-investors to support Valley Vet Supply's growth initiatives and working capital needs.

Lightyear Capital led a recapitalization of PracticeTek, joining founding investor Greater Sum Ventures to support the company's next phase of growth. The transaction will fund PracticeTek's continued organic growth, expansion of embedded payments and patient engagement capabilities, and strategic acquisitions to scale its retail healthcare software platform.

Iron Creek Partners led a recapitalization of Midwest Backgrounds, Inc. (MBI Worldwide) in a transaction that closed in September 2021, with participation from MBI's management team and Main Street Capital Corporation. The investment provides growth capital to support MBI's expansion of its employment background screening and consumer reporting services; financial terms were not disclosed.

Comvest Partners led a strategic recapitalization of Renovation Brands, a multi-brand direct-to-consumer e-commerce platform for home improvement products. Digital Fuel Capital, founder Rick Morse and Renovation Brands' management remain significant investors as Comvest provides capital and operational support to drive organic growth and further add-on acquisitions.

Iron Creek Partners led a recapitalization of Verified Credentials, Inc., joined by Verified's management team and Main Street Capital Corporation, closing in November 2021. The transaction provided growth capital to support Verified's technology advancement and product expansion; financial terms were not disclosed and CEO Kevin Spang remains in place and will join the board.

Finsbury Glover Hering and Sard Verbinnen & Co. have completed a merger to form a combined global strategic communications firm with more than 1,000 professionals and a global headquarters in New York. WPP remains the majority investor and Golden Gate Capital converted its equity in SVC and remains an investor; the combined firm will operate from 25 offices worldwide and will announce a new name and brand in early 2022.

Pine Tree Equity IV, LP recapitalized Summit Health Pharmacy, LLC in December 2021, partnering with the existing management team to support the company's growth. Summit, headquartered in Brookhaven, Pennsylvania and founded in 1995, is a specialty compounding pharmacy focused on rare pediatric metabolic medications; the recapitalization is intended to accelerate geographic expansion and enable complementary add-on acquisitions.

DFW Capital Partners led a recapitalization of American Track, a Fort Worth-based provider of railroad inspection, maintenance, repair and construction services. The transaction represents an ownership transition from Hilltop Private Capital (and its capital partners) and is intended to support American Track's next stage of geographic and service expansion, including organic growth and add-on acquisitions.

Main Street Capital Corporation provided $27.1 million in first-lien senior secured term debt and a direct minority equity investment to facilitate a minority recapitalization of DMA Sales, LLC, alongside an unnamed co-investor. The transaction supports DMA, a Tabor City, North Carolina-based designer and distributor of ride control and other automotive aftermarket products, and provides liquidity to existing owners while financing continued growth.

Kohlberg & Company will recapitalize Trinity Life Sciences, replacing Parthenon Capital as the company’s capital partner. The transaction provides Trinity with new growth capital to support global expansion, technology and data-driven capability investments while Trinity’s management team, led by CEO David Fitzhenry, will remain in place.

Pasadena-based digital queuing provider QLess completed a financing round that resulted in a change in control, with Palisades Growth Capital and a syndicate of family offices becoming the company's new owners. The capital will be used to accelerate growth initiatives, expand into new verticals, and advance QLess’s digital queue management and customer-experience platform.

Sentinel Capital Partners has entered into a partnership with RefrigiWear, the Dahlonega, Georgia-based manufacturer of insulated industrial workwear. Terms were not disclosed; the deal will keep the founding family involved while enabling growth initiatives and broader-based employee ownership.

WindRose Health Investors completed a recapitalization of StateServ Medical, partnering with the company’s management to provide growth capital and support national expansion. Blue Wolf Capital Partners sold its stake in StateServ following its investment and transformation of the business since 2017; terms were not disclosed.

Oak Hill Capital and CPP Investments have entered into a definitive recapitalization agreement with Berlin Packaging, with the Berlin Packaging management team (led by CEO Bill Hayes) making a significant co-investment. The recapitalization will support Berlin Packaging’s next growth stage, including expanding digital and e‑commerce capabilities, sustainability initiatives, and continued accretive acquisitions and international expansion.

Arbor Investments has completed a recapitalization of food-ingredient supplier Dr. G's Creations, marking the third platform investment for Arbor Fund V. The partnership will provide capital and operational support to help Dr. G's scale production, add infrastructure and systems, and expand distribution to meet growing demand from large QSRs, casual-restaurant chains and food processors; terms were not disclosed.

KLH Capital partnered with the management team of The Warehouse Rentals & Supplies (TWRS) in a recapitalization that gives management an ownership stake and brings in Salem Investment Partners as a financing partner. The deal will provide capital and resources to support TWRS’s growth as a national platform for surface-preparation equipment rental, value-added distribution, and on-site services.

Pollen Street Capital has agreed to sell Aryza Holdings Limited to Atlas Bidco 1 Limited — an acquisition vehicle owned by Macquarie Capital Principal Finance, Pollen Street Capital and Aryza senior management — in a recapitalization to support further growth. Macquarie will provide flexible institutional capital and international network support while Pollen Street and management remain invested; Aryza is a global provider of case management and process automation software for the insolvency, credit and debt recovery sectors.

Summit Park led a majority recapitalization of Ledge Lounger Inc., the in-pool and outdoor furniture D2C brand, in partnership with Digital Fuel Capital and the Ledge management team. The transaction provides partial liquidity to the founder and capital to accelerate growth, digital marketing capabilities and product innovation across D2C and B2B channels.

Ampersand Capital Partners has completed a majority recapitalization of Leinco Technologies, a specialty manufacturer of life-science reagents and custom development services based near St. Louis, Missouri. The growth equity investment will fund expanded manufacturing capacity, broaden scientific capabilities and product offerings, and support Leinco's commercial and geographic expansion while leadership including founder Pat Leinert Sr. remain involved.

KT Capital partnered with Dealer Solutions & Design’s senior management to lead a recapitalization of Duluth, Georgia‑headquartered Dealer Solutions & Design (DSD). Parkway Capital (the mezzanine affiliate of Calvert Street Investment Partners), Callodine Strategic Credit, and Pine Street Capital Partners provided subordinated debt and equity to support the transaction and fund DSD’s expansion across the United States.

An affiliate of H.I.G. Capital has acquired BECO Holding Company, Inc. from Behrman Capital; financial terms were not disclosed. BECO, headquartered in Charlotte, North Carolina, operates 16 distribution centers and provides fire suppression, life safety and kitchen system products and services; the company's leadership will remain with a significant ownership stake in the recapitalized business.

Main Street Capital Corporation provided $31.6 million of financing to YSN Imports, LLC d/b/a Flame King to facilitate a recapitalization and support future growth. The financing consisted of first-lien senior secured term debt and a direct equity investment, and Main Street (with an unnamed co-investor) also provided a revolving line of credit alongside the company's existing owners and management.

Leonard Green & Partners has made a significant growth investment in Parts Town in a recapitalization in which existing investor Berkshire Partners retained its majority stake and reinvested alongside management. The capital will be used to accelerate Parts Town's technology, supply chain and e-commerce capabilities and support rapid international expansion and entry into adjacent parts categories.

Chicago-based private equity firm Frontenac completed a majority recapitalization of RCG Global Services, a New Jersey–based digital transformation consultancy. Financial terms were not disclosed; the deal transitions majority ownership from Eos Partners to Frontenac and is intended to accelerate RCG's organic and inorganic growth and expand capabilities in AI, machine learning, analytics and managed services.

Martis Capital has made a majority growth recapitalization investment in Lighthouse Lab Services, alongside existing investor NaviMed Capital and the company's management team. Lighthouse, headquartered in Charlotte, North Carolina, provides end-to-end lab build-out, management, staffing, and consulting services to clinical laboratories across the United States; financial terms were not disclosed.

GI Partners has completed a recapitalization investment in Rectangle Health alongside existing investor TA Associates. The capital will support Rectangle Health's growth initiatives, product development and M&A strategy as the healthcare payments and patient engagement platform scales its business serving medical, dental and specialty practices.

Prairie Capital VII, LP partnered with industry executives Tyler Hawes and Eric Vorchheimer and Forever Cheese co-founders Michele Buster and Pierluigi Sini in a recapitalization of Forever Cheese in November 2021. Forever Cheese, headquartered in New York, is an importer and distributor of specialty cheeses and gourmet foods; the recapitalization will support company-building investments in sales & marketing, technology, human capital and add-on acquisitions.

Mountain Crest Acquisition Corp II completed a business combination with Better Therapeutics, taking the prescription digital therapeutics company public on Nasdaq under the ticker BTTX. The transaction generated approximately $70 million in gross proceeds (including a PIPE led by Farallon Capital Management, RS Investments, Sectoral Asset Management and Monashee Investment Management) and included a contingent credit facility from Hercules Capital to fund clinical development and regulatory efforts for Better Therapeutics' lead product, BT-001.

FINVASIA has made an investment in Canada-based digital health company Gini Health, with previous investors exiting and FINVASIA and founder Gurjot Narwal becoming the company’s key stakeholders. The deal positions FINVASIA to expand into preventive and personalized healthcare services while providing Gini Health with capital, operational resources and platform support to accelerate product and market growth.