This Sponsored Insight features Ben Harrison, Founder and Co-President of DealCloud, our sponsor for Season 3 of Private Equity Deals.

Ben discusses how DealCloud’s vertical software supports alternative investment professionals through deal sourcing, relationship and pipeline management, and workflow efficiencies.

We are incredibly grateful of DealCloud for sponsoring Private Equity Deals, and we are eager to highlight their value to the alternative investment community.

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On episode eight of season three of Private Equity Deals, Chris and Rob Michalik discuss Kinderhook Industries’ investment in Ironclad Environmental Services.

Chris and Rob are twin brothers and co-founders of Kinderhook, a twenty-year-old private equity firm that manages $5 billion specializing in middle-market businesses across healthcare services, environmental services, and automotive/light manufacturing.

Ironclad Environmental Services is a leading provider of logistics-based solutions focused on the containment of industrial waste. It has 50 branches and a fleet of 29,000 specialized rental assets that store, separate, and transport liquid and solid industrial waste.

Our conversation covers Kinderhook’s identification, due diligence, and negotiation of the deal. We discuss a significant early add-on acquisition, progress-to-date, and the future of Ironclad.

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Henk Hartong III is the Chairman and CEO of Brynwood Partners, a middle-market private equity firm that invests in U.S. consumer-oriented businesses, primarily in the food, beverage, and personal care sectors. Henk’s father established Brynwood in 1984, and the firm boasts an impressive forty-year track record of driving results through its hands-on operating expertise.

Hometown Food Company is a manufacturer and marketer of an iconic portfolio of American baking brands that includes Pillsbury, Funfetti, Hungry Jack, Martha White, White Lily, Jim Dandy, Arrowhead Mills, Sunspire, De Wafelbakkers, and Birch Benders.

Our conversation covers the creation of Hometown in 2018 through a carve-out from Smuckers, buildout of a new management team, systems, and supply chain, management of the business through the COVID pandemic, tuck-in acquisitions, and the resulting performance of the company.

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Rich Caputo is the Chairman and Chief Executive Partner and Erik Fagan the Co-Head of Diversified Industrials at The Jordan Company, a private equity firm founded in 1982 by Jay Jordan that manages $23 billion.

Silvus develops and manufactures mobile communications datalinks primarily used in law enforcement, unmanned systems, tactical, and other applications to facilitate data communication in harsh environments without needing fixed infrastructure.

Our conversation covers the sourcing, diligence, purchase of Silvus, work with the management team, special characteristics of culture, and lessons learned.

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Ignacio Jayanti is the CEO of Corsair, a $10 billion specialist in financial services and infrastructure investing that started as a private equity practice within JP Morgan three decades ago.

TreviPay is a global payments and invoicing network that enables businesses to transact in a reliable way with other businesses.

Our conversation covers Corsair’s target companies, sourcing of TreviPay inside World Fuel Services, diligence process, exclusivity period, valuation, and risk assessment. We then turn to post-close operations, including building and onboarding a team alongside the existing superstar CEO, managing the balance sheet, transitioning from the former parent, and the early performance and challenges of the deal.

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David Perez is the Co-Founder and Managing Partner at Avance Investment Management, a middle-market private equity firm focusing on U.S. services and consumer businesses that he launched with a billion-dollar first time fund after spinning out of Palladium Equity Partners in 2020.

Univista Insurance is a South Florida-based insurance agency offering auto, home, life, health, and commercial policies primarily to the Hispanic community that was founded and run by Cuban immigrants in 2006.

Our conversation covers Univista’s history and business, sourcing of the deal, opportunities and risks, and deal process. We discuss valuation and financing, drivers of the business post-acquisition, and exit strategy down the road.

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Michael Fisch is the founder and CEO of American Securities, a private equity firm founded in 1994 that manages $27 billion focusing on U.S. middle market companies.

Milk Specialties is a producer of dairy products for the health and wellness, sports, and functional food industries. With roots dating back to 1944, the company focuses on Whey products and ingredients that end up in recognizable brands.

Our conversation covers American Securities approach to investing, Milk Specialties market niche, and the diligence and deal process. We turn to the gameplan for the business alongside existing management, growth drivers, and risk mitigation. We then go full circle discussing the sale process to exit the investment, covering the timing, auction, and case against continuation funds.

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Greg Fleming is the CEO of Rockefeller Capital Management, a business he created alongside the Rockefeller family and Viking Global Investors with the purchase of Rockefeller & Co. in 2018. He was a guest describing his background and the early years of RCM on Capital Allocators, and that conversation is replayed in the feed.

Rockefeller Capital Management is a platform that encompasses private wealth management, strategic advisory, and asset management formed out of the former family office of the Rockefeller family that today advises on over $100 billion in assets. 

Our conversation covers Greg’s vision for Rockefeller Capital, the deal to purchase Rockefeller & Co, tuck-in acquisitions of private wealth managers, development of strategic advisory, and refining of the asset management business. We discuss the tuck-in acquisition process, including sourcing, diligence, deal structure, and integration, and the technology and operations required to make it work. We close discussing the recent recapitalization of RCM by the Desmarais family and Greg’s aspirations for the next five years. 

For full show notes, visit the episode webpage here.

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Greg Fleming is the founding CEO of Rockefeller Capital Management, where he took the helm of a storied family office in 2018 to build and serve other families and institutions as well. Prior to taking on this challenge, Greg was the President of Morgan Stanley Wealth Management and Morgan Stanley Investment Management and before that spent seventeen years at Merrill Lynch, culminating in serving as President and Chief Operating Officer from 2007-2009.

Our conversation walks through some of Greg’s career path, including highlights from the financial crisis, and the Rockefeller Capital Management business and strategy. We hit on ESG investing, serving clients, and leadership. And I couldn’t help asking Greg about his relationship with Yankee great Derek Jeter.

For full show notes, visit the episode webpage here.

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Chris Ackerman is a Managing Director at Flexpoint Ford, a Chicago-based private equity firm founded in 2005 that manages $7.5 billion targeting investments in the healthcare and financial services sectors.

TigerRisk is an independent reinsurance broker and capital advisory firm founded in 2008. The company was founder and employee-owned at the time of Flexpoint Ford’s investment and had grown to become the fourth-largest reinsurance broker in the world, sitting below the big three of Aon, Marsh McClennan’s Guy Carpenter, and Willis Re.

Our conversation covers the history of TigerRisk and its differentiation as a preferred alternative to the big three. We discuss Flexpoint’s sourcing of the deal, perceived investment opportunity and risk, and Covid disruption to the deal process. We turn to the business performance, culture as a competitive advantage, alignment of incentives, unexpected sale, and lessons learned.

For full show notes, visit the episode webpage here.

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Next week, we’ll release the first episode of Season 3 of Private Equity Deals, this time focusing on deals in the middle market.

As an interlude between Season 2 and 3, this week’s show is a classic – it’s Bain Capital and KKR’s take private of Hospital Corporation of America (HCA) in 2006. The $33 billion club deal was the largest private equity transaction in history at the time and was significantly larger than any deal since KKR’s famous run at RJR Nabisco in the late 1980s. The HCA deal showed the private equity industry the scale of what was possible and set the stage for both mega buyouts and public to private deals ever since.

My guest is Chris Gordon, a Partner and Co-Head of Private Equity in North America for Bain Capital. Bain Capital today is one of the world’s largest private, multi-asset investing firms that oversees over $165 billion in assets. Seventeen years ago, Chris was a younger member of Bain Capital’s HCA deal team.

HCA is one of the nation’s leading healthcare services providers, with over 182 hospitals and 2,300 sites of care in 20 states and the United Kingdom. Its origins date back to 1968 when it was one of the first hospital companies in the United States.

Our conversation covers HCA’s history, the private equity environment in the mid-2000s, and the impetus for the HCA buyout. We discuss the complexity of navigating a large-scale transaction, conducting due diligence discretely, navigating the financial crisis, and what happened to the company. We turn to HCA’s return to the public markets through an IPO in 2011, Bain Capital’s eventual exit of the investment, and the implications of the deal on the firm and industry.

For full show notes, visit the episode webpage here.

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