Recapitalizations in 2022

Level Equity Management has made a majority investment in TeamDynamix, a Columbus-based provider of ITSM, PPM and iPaaS software, while existing investor K1 Investment Management exited but rolled a material portion of proceeds back into the business and will remain a significant equity holder. The recapitalization is intended to provide growth capital to accelerate product innovation and expand TeamDynamix's market share across industries such as financial services, healthcare and the public sector.

Main Street Capital Corporation completed a minority recapitalization of World Micro Components, LLC, funding $18.1 million in a combination of first-lien senior secured term debt and a direct minority equity investment. World Micro, a Roswell, Georgia-based distributor of electronic parts and supply-chain services serving aerospace & defense, healthcare, technology and industrial automation end markets, partnered with Main Street and a co-investor while the company's existing owner and senior management remain involved.

Pronovias Group agreed a binding recapitalization that transfers majority ownership from BC Partners to a consortium led by Bain Capital and MV Credit. The recapitalization will reduce the Group's debt, extend maturities and inject liquidity to support Pronovias' growth strategy and strengthen its balance sheet.

Shoreline Equity Partners has partnered with C&S Chemicals, a Marietta, Georgia-based provider of water treatment and animal health chemicals, to support the company’s growth strategy. The Chandler brothers retain a significant ownership stake and will continue to lead the business as Shoreline provides capital and acquisition expertise to pursue organic growth and add-on acquisitions.

Monument MicroCap Partners’ portfolio company Synergy IOM LLC recapitalized Premier Health Billing Services, LLC on December 16, 2022. Premier, a San Diego–area outsourced medical billing and revenue cycle management provider, will be integrated with Synergy to expand capabilities and capture synergies across the region.

The Halifax Group completed a control investment to acquire a majority interest in Milestone Technologies from H.I.G. Capital, with H.I.G. retaining a minority stake. Two Sigma Impact made a minority investment alongside Halifax, and Milestone's existing management team, led by CEO Sameer Kishore, will remain invested and continue to lead the company as it pursues further global growth in IT managed services.

Riata Capital Group has led a recapitalization of Salon Republic in partnership with Founder and CEO Eric Taylor and the company's management team. The investment will fund accelerated geographic expansion and strategic growth for Salon Republic, a Woodland Hills-based operator of 24 salon suite locations serving over 2,500 beauty care professionals across seven markets.

Align Capital Partners has completed a recapitalization of Premier Biotech, a Minneapolis-based provider of point-of-care drugs of abuse testing devices and accredited laboratory services. Cascadia Capital served as exclusive financial advisor; Align will partner with management to scale the business, accelerate product development and expand the company's reach across workplace, government and clinical end markets.

Merit Capital Partners partnered with Six Pillars Partners and the company's management to merge and recapitalize Red Square Agency, Inc. (Mobile, Alabama) and Foundry, LLC (Reno, Nevada) to form Good Giant, a full-service integrated marketing agency focused on the casino and hospitality sectors. Merit provided subordinated debt and equity as part of the transaction, which represents the firm's fourth platform investment by Fund VII.

Investcorp, together with Public Sector Pension Investment Board (PSP Investments), acquired a majority stake in CrossCountry Consulting in a recapitalization transaction; RLH Equity Partners reinvested and CrossCountry founders remain significant shareholders. The capital injection is intended to accelerate CrossCountry's geographic expansion, broaden service offerings (including technology-enabled advisory and cybersecurity), and support add-on acquisitions.

Salt Creek Capital completed a recapitalization of Pacific Paper, partnering with CEO Bill Donahue to provide liquidity to investors and support the company's next growth phase. Pacific Paper, headquartered in Rancho Cucamonga, California, is a custom paperboard sheet converter serving packaging manufacturers and commercial printers across the U.S.; the company employs over eighty people and operates facilities in Southern California and Lithia Springs, Georgia.

NMS Capital has partnered with Surplus Solutions’ management in a recapitalization of Surplus Solutions LLC; terms were not disclosed. The investment will support geographic and inventory expansion, strategic M&A, and investments in infrastructure and operations to drive the company's next phase of growth; Twin Brook Capital provided debt financing.

Wynnchurch Capital has acquired a majority ownership in Industrial Service Solutions (ISS) from Edgewater Funds and JZ Capital Partners, with Edgewater and JZ retaining minority stakes. The recapitalization will support ISS's continued organic growth and acquisitive expansion of its national industrial MRO platform headquartered in Houston, Texas.

A fund managed by Macquarie Asset Management has completed the acquisition/recapitalization of DTG Recycle from Clairvest and other shareholders. DTG management (CEO Tom Vaughn and Chief Development Officer Dan Guimont) will retain ownership stakes and continue to run the business as MAM supports the company’s next stage of growth and geographic expansion across the Pacific Northwest.

Pine Tree Equity IV, LP completed a recapitalization investment in Marshall & Stevens in December 2022. The transaction provides capital to support Marshall & Stevens’ continued growth, including organic expansion and acquisition-driven growth, while executive management remains in operating control.

Patient Square Capital became the majority equity owner of Eargo, Inc. after converting its senior secured convertible notes and participating in Eargo’s rights offering. The transaction leaves Eargo debt-free, gives Patient Square approximately 76.3% of outstanding common stock, and raises roughly $32.3 million of net proceeds to support working capital and the company’s omni-channel growth strategy.

Shoreline Equity Partners has partnered with Core Roofing Systems, a commercial roofing services provider headquartered in Alpharetta, Georgia. The private equity firm made a recapitalization investment to support Core Roofing’s growth plan—including organic initiatives and add-on acquisitions—while founder Dusty DeVore retains a significant ownership stake and continues to lead the company.

Concentric Equity Partners and Summer Street Capital Partners led a global investment group that purchased a majority stake in Frontier Waste Solutions from Blue Sage Capital. The transaction recapitalizes Frontier to support continued geographic growth across Texas and capability expansion including further vertical integration and materials processing; Frontier's founders and managers remain significant owners.

WILsquare Capital, a St. Louis-based private equity firm, completed a majority recapitalization of Resident Essentials (Entropic, Inc.), a Weymouth, Massachusetts-based e-commerce/catalog supplier of adaptive clothing and home healthcare products for senior care facilities. Founder Jeff Garber retained significant equity and will remain on the board; David Lonczak was named CEO to lead the next phase of growth.

Grindr completed a business combination with special purpose acquisition company Tiga Acquisition Corp., and the combined company began trading on the NYSE under the ticker GRND. The transaction takes Grindr public to support user growth, product and monetization investments, and international expansion while providing access to public capital markets.

Prospect Partners recapitalized Entech Computer Services, a Fort Myers-based managed IT and cybersecurity services provider, in a deal alongside Entech management. The partnership will support Entech's regional growth and pursue managed-services add-on acquisitions as the company becomes Prospect Partners' 55th portfolio company.

Gauge Capital has partnered with the founders and management team of RIP-IT in a recapitalization to support the athletic equipment and footwear brand's next phase of growth. The investment will help RIP-IT expand marketing reach and continue developing female-focused sports products across its RIP-IT, Ringor, and Defender brands.

Chicago-based private equity firm Frontenac has completed a recapitalization with CertainPath, a technology-enabled training and development provider for HVAC, plumbing, electrical and roofing contractors. Financial terms were not disclosed; the partnership will fund CertainPath's investments in its core offerings and support growth through complementary acquisitions.

Concentric Equity Partners (the direct investing arm of Financial Investments Corporation) completed a recapitalization of Aruza Pest Control, a Charlotte-based provider of residential and commercial pest, termite, and mosquito control services. CEP is partnering with Aruza co-founder and CRO Christian Ludwig (who retains a significant stake) and CEO Andrew Beck to scale the company into a super-regional pest control platform across the Southeast.

On November 4, 2022 KCM Capital Partners and Prairie Capital (Prairie Capital VII), in partnership with Royal Distributing management, completed a recapitalization of Royal Distributing, an omnichannel Canadian powersports aftermarket retailer and distributor. The transaction will support company-building initiatives — including investments in people, sales & marketing, technology and infrastructure — and fund add-on acquisitions to accelerate growth.

Wincove Private Holdings, LP has recapitalized USBid, Inc., a Palm Bay, Florida-based value-added distributor of hard-to-find and end-of-life electronic components. The transaction provides USBid with permanent capital to support growth, expand testing services, and deepen customer relationships while Wincove partners with management (including appointing Matt McIntosh as CEO).

Funds managed by Greenbriar Equity Group completed a majority recapitalization of RANDYS Worldwide Automotive, with existing investor Tailwind Capital and management reinvesting and Tailwind retaining an equity stake. The transaction will support RANDYS' accelerated growth plans—including new technology, expanded product development, and selective add-on acquisitions—while CEO Kevin Kaestner remains in place at the company's Everett, Washington headquarters.

GTCR has made a strategic, majority recapitalization investment in Biocoat Holdings, LLC, a Horsham, Pennsylvania-based provider of biocompatible hydrophilic coatings and dip-coating equipment for medical devices. Existing investor 1315 Capital and Biocoat management retain minority stakes; GTCR will partner with CEO Jim Moran and add industry veteran Chip Hance as Executive Chairman to support growth, capability expansion and follow-on acquisitions.

Adams Resources & Energy repurchased 1,942,433 common shares (approximately 44.2% of outstanding shares) from KSA Industries and affiliated family members, funded with cash on hand and a new term loan. The transaction, which closed October 31, 2022, gives the company an effective control position and was accompanied by placement of a five-year $85 million credit facility led by Cadence Bank.

Main Street Capital Corporation completed a $31.3 million portfolio investment in MetalForming, LLC to support a recapitalization of the company. The financing, provided as a combination of first‑lien senior secured term debt and a direct equity investment (plus a revolving credit facility), was made alongside an unnamed co‑investor and a private investment group with participation from MetalForming's management and founder to provide growth capital and working capital support.

Main Street Capital Corporation completed a $34.3 million financing package (first lien senior secured term debt and a direct equity investment) to recapitalize Elgin Industries, a U.S. manufacturer of engine and chassis components headquartered in Elgin, Illinois. The investment provides Elgin with growth capital and a revolving credit facility to support its long-term growth strategy, working capital needs and capability expansion.

Executive Network Partnering Corporation (ENPC) and Grey Rock Investment Partners completed a business combination to form Granite Ridge Resources, Inc. (NYSE: GRNT), a publicly traded, non‑operated oil and gas exploration and production company with an initial enterprise value of about $1.2 billion and an anticipated 4.9% annual dividend yield. Granite Ridge holds the non‑operated working interests previously held by Grey Rock’s Fund I, Fund II and Fund III and will be managed under a long‑term services agreement with the Grey Rock team.

Cimarron Healthcare Capital and Tacoma Holdings recapitalized Frontpoint Health, a home health and hospice platform focused on Medicare Advantage patients in Texas. The deal installs Brent Korte as CEO and provides capital to support organic growth, strategic acquisitions and greater synergy between Frontpoint's home health and hospice businesses; financial terms were not disclosed.

Three Hills Capital Partners, via its Three Hills Capital Solutions IV vehicle, provided £67.9 million of preferred capital as part of a £238 million syndicate to fund the delisting of UK social care provider CareTech from the AIM. The investment supports a take‑private/recapitalization of CareTech, a leading provider of specialist social care, supported living and education services for adults and children in the UK.

The Riverside Company has acquired a majority equity stake in OutSolve, LLC, a Metairie, Louisiana-based provider of outsourced labor and employment compliance solutions. LNC Partners sold the majority interest held in its Fund I while LNC's Fund II also joined as a new investor; Riverside plans to drive growth through add-on acquisitions and expanding adjacent services such as pay equity, DE&I and ESG.

Mollitiam Holdings, a Florida-based private equity group, made a strategic majority investment in Extreme Crane & Rigging (Extreme Crane) to recapitalize the business and provide capital for fleet and service expansion across the Mid-Atlantic. Extreme Crane, headquartered in Manassas, Virginia, will use the investment to add equipment and grow its operations in Virginia, DC, Maryland and parts of West Virginia.

Emko Capital announced a recapitalization of Davlyn Group in partnership with Webster Bank and also completed an acquisition of a confidential mass customization manufacturer. The recapitalization will support Davlyn’s continued growth in technical textiles and composites, while Emko plans organic growth and bolt-on acquisitions across its manufacturing platform.

United Air Temp (a portfolio company of Summit Park) completed a recapitalization of Bullseye Home Services, a residential plumbing and HVAC services provider headquartered in Osprey, Florida. The transaction was done in partnership with Bullseye owners Allen and Melissa Crick, who will remain in management, and positions Bullseye as part of UAT's platform to expand plumbing capabilities and regional presence in the Southeast.

Funds advised by Lee Equity Partners and Coastwood Senior Housing Partners agreed to recapitalize Discovery Senior Living in October 2022. The recapitalization will fund Discovery's continued national expansion and operational platform enhancements; Dan Decker of Coastwood will assume the role of chairman upon closing. Discovery is a Bonita Springs, Florida–based senior living operator with a multi-branded portfolio of more than 110 communities and ~15,000 homes or homes under development.

American Discovery Capital and MSouth Equity Partners have completed an investment in Medix Staffing Solutions, LLC, partnering with the company's management team to provide institutional capital to support growth. Medix, a Chicago-based healthcare staffing and workforce solutions provider operating across 44 states, will leverage the new partnership to accelerate growth initiatives and pursue potential M&A while providing liquidity and strategic support to the founder and management team.

A North Castle Partners–managed single-asset continuation fund, led by TPG GP Solutions with co-lead Montana Capital Partners and reinvesting LPs/GPs, acquired CR Fitness from North Castle Partners VII, LP and other existing investors. The deal preserves North Castle's ownership via the new vehicle and provides additional capital to support CR Fitness' organic growth and club expansion across the U.S.

Flourish Research, a portfolio company of NMS Capital, partnered with Keystone Clinical Studies' management in a recapitalization transaction. Keystone, a Plymouth Meeting, Pennsylvania-based clinical research site focused on Alzheimer’s disease and CNS conditions, will continue to be led by founder Dr. Cherian Verghese as part of the Flourish platform to expand CNS capabilities and enter the Philadelphia market.

CenterOak Partners completed a majority recapitalization of Palmetto Exterminators, with the selling family retaining an equity stake and the incumbent senior management remaining in place. Palmetto, headquartered in Charleston, South Carolina, operates eight branches providing general pest, termite and mosquito control to residential and commercial customers across the Carolinas and Georgia; CenterOak intends to support the company's organic growth and roll-up strategy through add-on acquisitions.

WayPoint Capital Partners and GearBox Capital led an investor group that recapitalized Greenshades Software, with SFW Capital Partners retaining a minority stake. Greenshades, headquartered in Jacksonville, Florida, provides payroll, payroll tax, and HCM software for mid-market employers and will pursue continued product and go-to-market growth under the new ownership group. Terms were not disclosed.

Allied Industrial Partners LLC completed a recapitalization investment in Wall Recycling, LLC, a Raleigh-based provider of waste hauling, disposal and recycling services. Wall Recycling (which later rebranded to Liberty Waste Solutions) will remain led by founder and CEO Dan Wall and will use the partnership to support growth, operational enhancements and buy-and-build expansion.

Chicago-based private equity firm Frontenac has completed a recapitalization of Zipline Logistics to accelerate organic growth initiatives and pursue strategic acquisitions. Zipline's management team will remain in place and retain a significant ownership stake; industry veteran Don Maltby is joining the board to support growth in the consumer-packaged goods logistics market.

Indianapolis-based private equity firm CID Capital has partnered with Wiseway (a Florence, Kentucky-based distributor of electrical, plumbing, and lighting supplies) in a recapitalization to support the company’s next phase of growth. Reinsurance Group of America provided financing for the transaction; Wiseway’s president John Cain will continue to partner with CID and the company will implement a formal board to drive growth and profitability.

Greenbelt Capital Partners led a majority recapitalization of Unirac, Inc., with investment participation from Trilantic Energy Partners II and related funds. Existing sponsor Tenex Capital Management and key members of Unirac's management will retain a significant ownership stake; the transaction will support product development, supply‑chain resiliency and continued growth in the residential and commercial solar racking market.

Kestra Holdings, an Austin-based wealth management platform, completed a recapitalization in which Oak Hill Capital acquired the minority equity position previously held by funds managed by Stone Point Capital, while Warburg Pincus remains the majority investor. The transaction brings a new private capital partner to support Kestra’s continued scaling, platform investments and capability expansion across its wealth management businesses.

The Vistria Group has invested in Flores & Associates LLC, a Charlotte-based administrator of employer-sponsored reimbursement plans and benefits technology solutions. As part of the recapitalization, The Vistria Group and Century Equity Partners will each hold equal ownership and continue to support the existing management team, providing capital and operational resources to drive organic growth and further M&A.