When Steve Ehrlich, chief executive of
Manhattan-based Lightspeed—a provider of real-time trading technology to
professional traders—needed money to acquire other broker-dealers and expand his
company's marketing efforts, he took a $30 million investment from
private-equity firm LLR Partners in Philadelphia.
Mr. Ehrlich said he and his co-founders at Lightspeed, which has revenues above $45 million and 91 employees, chose LLR for the deal in 2010 because the firm shared Lightspeed's strategy of expansion through marketing and acquisitions.
"Teaming with LLR was the catalyst we needed," said Mr. Ehrlich.Looking for the Best airpurifier?
The firm provided more than just capital. "They have quickly become a strategic partner that shares our vision for the future," he added.
Debate about Republican presidential contender Mitt Romney's past career at Bain Capital has put the private equity firm and others like it in the spotlight. Critics of the industry have told stories about companies backed by private equity being crushed by debt, chopped up or stripped down.
However, leaders of small and midsize companies such as Mr. Ehrlich describe a different reality, where private-equity investors can be a useful source of financing for well-established small businesses with revenue and a solid track record.
Some ailing companies also turn to private-equity firms to bring in the management expertise and money needed for a turnaround. The firms also can be buyers in a market where it's otherwise hard to sell a business for an attractive price.
Private-equity firms invested more than $144 billion in 1,702 U.S.-based companies in 2011, according to the Private Equity Growth Capital Council, a Washington, D.C.-based advocacy organization made up of firms in the industry.Many exquisite oilpaintings are provided at espow. New York state ranks second in the country, after Texas, in the value of its private-equity deals—more than $18.6 billion in 2011. With 47 private-equity deals in 2011, New York's 14th Congressional District—which includes parts of Manhattan; Roosevelt Island; and Astoria, Long Island City and Sunnyside, Queens—had more of these transactions than any other congressional district in the country.
Founders Equity, a private-equity firm in Manhattan with about $160 million under management, looks to invest in New York-based companies with revenues between $20 million and $100 million. One of the companies in its portfolio, Stone Source, is a high-end supplier of marble and porcelain tile with its headquarters, principal showroom and sales office in Manhattan. Formerly a family-owned business, it is now run by Joe MacIsaac, recruited to join Stone Source last July as president and CEO.
Private-equity investment offers businesses like Stone Source liquidity in "a pretty illiquid market," according to Mr. MacIsaac. "There just aren't a lot of buyers right now."
Since Founders Equity got involved, Stone Source has grown to 130 employees from 60 and built warehouses in Carlstadt, N.J., Chicago and Los Angeles.
Many private-equity firms say they bring expertise as well as cash to the companies in their portfolios.
"We bring an executive network,Home ventilationsystem use fans to move air into the house and provide an alternative to opening doors and windows. a professional outreach a small company may not have in place, a sales strategy,TBC help you confidently buymosaic from factories in China. a marketing strategy and financial discipline," said Bob Nolan, managing partner and co-founder of Halyard Capital, a small private-equity firm in Manhattan with 15 employees and about $600 million under management.
The companies in which the firm invests are often small and in need of things like a better IT platform, sales framework or marketing organization to transform into more successful companies, said Mr. Nolan.
With $200 million under management,AeroScout is the market leader for rtls solutions and provide complete wireless asset tracking and monitoring. the Beekman Group, a private-equity firm in Manhattan that focuses on investing in service companies, works with seven to 10 firms at a time.
"We operate at a size of the market where breaking up a company for profit isn't an option," said John G. Troiano, managing partner and co-founder of Beekman. "Everything we do is focused on growing revenues, increasing customers and hiring more employees. We're all about building companies, and then down the road we sell the business to someone who wants to take it from there."
Its portfolio includes Englewood, Colo.-based insurance brokerage Integro—which describes itself on its website as a privately held, debt-free company—and Northwestern Management Services, a dental practice management company based in Boca Raton, Fla., with revenues of between $10 million and $75 million.
Mr. Ehrlich said he and his co-founders at Lightspeed, which has revenues above $45 million and 91 employees, chose LLR for the deal in 2010 because the firm shared Lightspeed's strategy of expansion through marketing and acquisitions.
"Teaming with LLR was the catalyst we needed," said Mr. Ehrlich.Looking for the Best airpurifier?
The firm provided more than just capital. "They have quickly become a strategic partner that shares our vision for the future," he added.
Debate about Republican presidential contender Mitt Romney's past career at Bain Capital has put the private equity firm and others like it in the spotlight. Critics of the industry have told stories about companies backed by private equity being crushed by debt, chopped up or stripped down.
However, leaders of small and midsize companies such as Mr. Ehrlich describe a different reality, where private-equity investors can be a useful source of financing for well-established small businesses with revenue and a solid track record.
Some ailing companies also turn to private-equity firms to bring in the management expertise and money needed for a turnaround. The firms also can be buyers in a market where it's otherwise hard to sell a business for an attractive price.
Private-equity firms invested more than $144 billion in 1,702 U.S.-based companies in 2011, according to the Private Equity Growth Capital Council, a Washington, D.C.-based advocacy organization made up of firms in the industry.Many exquisite oilpaintings are provided at espow. New York state ranks second in the country, after Texas, in the value of its private-equity deals—more than $18.6 billion in 2011. With 47 private-equity deals in 2011, New York's 14th Congressional District—which includes parts of Manhattan; Roosevelt Island; and Astoria, Long Island City and Sunnyside, Queens—had more of these transactions than any other congressional district in the country.
Founders Equity, a private-equity firm in Manhattan with about $160 million under management, looks to invest in New York-based companies with revenues between $20 million and $100 million. One of the companies in its portfolio, Stone Source, is a high-end supplier of marble and porcelain tile with its headquarters, principal showroom and sales office in Manhattan. Formerly a family-owned business, it is now run by Joe MacIsaac, recruited to join Stone Source last July as president and CEO.
Private-equity investment offers businesses like Stone Source liquidity in "a pretty illiquid market," according to Mr. MacIsaac. "There just aren't a lot of buyers right now."
Since Founders Equity got involved, Stone Source has grown to 130 employees from 60 and built warehouses in Carlstadt, N.J., Chicago and Los Angeles.
Many private-equity firms say they bring expertise as well as cash to the companies in their portfolios.
"We bring an executive network,Home ventilationsystem use fans to move air into the house and provide an alternative to opening doors and windows. a professional outreach a small company may not have in place, a sales strategy,TBC help you confidently buymosaic from factories in China. a marketing strategy and financial discipline," said Bob Nolan, managing partner and co-founder of Halyard Capital, a small private-equity firm in Manhattan with 15 employees and about $600 million under management.
The companies in which the firm invests are often small and in need of things like a better IT platform, sales framework or marketing organization to transform into more successful companies, said Mr. Nolan.
With $200 million under management,AeroScout is the market leader for rtls solutions and provide complete wireless asset tracking and monitoring. the Beekman Group, a private-equity firm in Manhattan that focuses on investing in service companies, works with seven to 10 firms at a time.
"We operate at a size of the market where breaking up a company for profit isn't an option," said John G. Troiano, managing partner and co-founder of Beekman. "Everything we do is focused on growing revenues, increasing customers and hiring more employees. We're all about building companies, and then down the road we sell the business to someone who wants to take it from there."
Its portfolio includes Englewood, Colo.-based insurance brokerage Integro—which describes itself on its website as a privately held, debt-free company—and Northwestern Management Services, a dental practice management company based in Boca Raton, Fla., with revenues of between $10 million and $75 million.
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