Secondary Buyout • Business Services

Northcreek Mezzanine, Tenth Street Capital, Halyard Capital and NewStar Financial Acquire HCPro

On February 14, 2008, Northcreek Mezzanine, mezzanine finance firm Tenth Street Capital, private equity firm Halyard Capital and NewStar Financial acquired business services company HCPro from Riverside

Acquisition Context
  • This is Northcreek Mezzanine’s 1st, Tenth Street Capital’s 1st, Halyard Capital’s 1st and NewStar Financial’s 1st transaction in the Business Services sector.
  • This is Northcreek Mezzanine’s 1st, Tenth Street Capital’s 8th, Halyard Capital’s 14th and NewStar Financial’s 5th transaction in the United States.
  • This is Northcreek Mezzanine’s 1st, Tenth Street Capital’s 1st, Halyard Capital’s 3rd and NewStar Financial’s 1st transaction in Massachusetts.
Investment Fate
  • HCPro was sold to a strategic buyer in 2013.
  • HCPro was divested to a consortium of strategic buyers in 2023.

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M&A Deal Summary

Date February 14, 2008
Target HCPro
Sector Business Services
Buyer(s) Northcreek Mezzanine
Tenth Street Capital
Halyard Capital
NewStar Financial
Sellers(s) Riverside
Deal Type Secondary Buyout

Target Company

HCPro

Middleton, Massachusetts, United States
HCPro is a provider of integrated information, education and training in the vital areas of healthcare regulation and compliance. HCPro was founded in 1986 and is based in Middleton, Massachusetts.
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Buyers Overview 4

Buyer

Northcreek Mezzanine


Category Private Equity Firm
Founded 2010
PE ASSETS 250M USD
Size Small
Type Sector Agnostic
DESCRIPTION


Deal Context for Buyer #
Overall 1 of 28
Sector: Business Services 1 of 3
Type: Secondary Buyout 1 of 4
State: Massachusetts 1 of 1
Country: United States 1 of 28
Year: 2008 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-01-01 Open Sky Media

Austin, Texas, United States

Open Sky Media is an operator of city and lifestyle magazines that appeal to affluent readers living in healthy, fast-growing markets. Open Sky Media's titles include Austin Monthly, Austin Home, San Antonio Magazine, Slice Magazine (OKC) and Marin Magazine. Open Sky Media was founded in 2010 and is based in Austin, Texas.

Buy -
Buyer

Tenth Street Capital

Chattanooga, Tennessee, United States

Investor Investor


Category Mezzanine Finance Firm
Founded 2005
PE ASSETS 500M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Tenth Street Capital is an independent investment firm that seeks to invest in lower middle-market companies operating in a broad range of industries. The Firm provides mezzanine and equity co-investments to profitable businesses with strong market positions and diverse customers. Areas of interest include manufacturing, distribution, and services. Investment proceeds are generally used to support acquisitions, buyouts, and recapitalizations. Tenth Street Capital was formed in 2005 and is based in Chattanooga, Tennessee.


Deal Context for Buyer #
Overall 8 of 35
Sector: Business Services 1 of 2
Type: Secondary Buyout 1 of 2
State: Massachusetts 1 of 2
Country: United States 8 of 35
Year: 2008 2 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-02-05 European Soaps

Seattle, Washington, United States

European Soaps LLC is a wholesaler of soaps made in Europe to independent gift stores.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-03-01 Calling All Ships

Miami, Florida, United States

Calling All Ships is a distributor of health and beauty aids, candy, and sundry products to the cruise line industry and other hospitality industries. Calling All Ships was founded in 1986 and is based in Miami, Florida.

Buy -
Buyer

Halyard Capital

Sarasota, Florida, United States

Investor Investor Investor


Category Private Equity Firm
Founded 2000
PE ASSETS 600M USD
Size Middle-Market
Type Sector Focused
DESCRIPTION

Halyard Capital is a private equity firm that focuses exclusively on the tech-enabled business and information services, digital marketing/data analytics, IT cyber security, and IT infrastructure and communications industries. Halyard looks to commit between $10 and $40 million of equity per transaction in companies valued up to $250 million. Investments are typically made to help support leveraged buyouts, growth equity, and other structured investments. Halyard will consider both control and non-control investment situations and prefers North American and European-based opportunities. Halyard Capital was formed in 2000 and is based in Sarasota, Florida.


Deal Context for Buyer #
Overall 14 of 27
Sector: Business Services 1 of 2
Type: Secondary Buyout 1 of 2
State: Massachusetts 3 of 4
Country: United States 14 of 27
Year: 2008 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-10-04 TranZact

Fort Lee, New Jersey, United States

TranZact specializes in addressing consumers' insurance needs through our comprehensive direct-to-consumer marketing, sales, servicing, and technology capabilities. TranZact was founded in 1997 and is based in Fort Lee, New Jersey.

Sell $185M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-04-08 Engauge Marketing

Columbus, Ohio, United States

Engauge Marketing LLC, the advertising and digital services agency based in Columbus, Ohio, USA. Engauge provides full-service advertising and digital services with a burgeoning social marketing practice to more than 30 clients, including Nationwide Insurance, Cisco Systems, and The Coca-Cola Company.

Buy -
Buyer

NewStar Financial

Boston, Massachusetts, United States

Category Company
Founded 2004
Sector Financial Services
Employees122
Revenue 220M USD (2015)
DESCRIPTION

NewStar Financial, Inc. is an internally-managed, commercial finance company with $7.3 billion of assets managed across two complementary business lines — middle market direct lending and asset management. The Company's direct lending activities are focused on meeting the complex financing needs of companies and private investors in the middle markets through specialized lending groups that offer a range of flexible debt financing options. Credit investments are originated directly through teams of experienced, senior bankers and marketing officers organized around key industry and market segments. Through its asset management platforms, NewStar offers a range of investment products employing credit-oriented strategies focused on middle market loans and liquid, tradeable credit.


Deal Context for Buyer #
Overall 5 of 8
Sector: Business Services 1 of 1
Type: Secondary Buyout 1 of 2
State: Massachusetts 1 of 1
Country: United States 5 of 8
Year: 2008 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-03-28 AL Solutions

New Cumberland, West Virginia, United States

AL Solutions is a distributor of titanium and zirconium additives.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2009-09-30 Katena

Parsippany, New Jersey, United States

Katena is a provider of precision ophthalmic instruments and therapeutics to physician offices, hospitals, and surgical centers. Katena’s product offering includes precision surgical instruments, single-use devices, and specialty biologics that are sold into over 100 countries through a network of direct salespeople and distributors. Katena was founded in 1975 and is based in Parsippany, New Jersey.

Buy -

Seller Profile 1

SELLER

Riverside

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1988
PE ASSETS 5.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Riverside Company is a global private equity firm that seeks investments in profitable lower middle-market companies valued under $400 million. Riverside looks to invest in growth businesses headquartered in North America, Europe, and Asia (primarily Japan and South Korea), that have been in operation for at least five years. Riverside targets investments in a wide array of industries including distribution, automotive, healthcare, education, manufacturing, software, consumer services, plastics, publishing, food, communications, marine, and business services. Riverside was formed in 1988 and is based in New York City.


Deal Context for Seller #
Overall 27 of 210
Sector: Business Services 2 of 17
Type: Secondary Buyout 11 of 85
State: Massachusetts 1 of 4
Country: United States 20 of 148
Year: 2008 1 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-02-01 DF King Worldwide

New York, New York, United States

D.F. King boasts industry-recognized expertise in proxy contests, tender offers and exchange offers for corporate control. D.F. King has been one of the leading and most trusted providers of proxy and other stakeholder services in the U.S. Today, we are one of the leading proxy solicitation providers in the mutual fund industry.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-03-01 EM Test AG

Reinach, Switzerland

EM Test manufactures electromagnetic compatibility ('EMC') test and measurement instrumentation for the automotive, industrial, telecom and other industries. The company has facilities in five countries and has a distributor network encompassing over 40 countries.

Buy -