Investment Summary

Aldine Capital Partners, O2 Investment Partners, Strattam Capital and Apogem Capital Invest In MHC Software

On September 29, 2017, mezzanine finance firm Aldine Capital Partners, private equity firm O2 Investment Partners, private equity firm Strattam Capital and asset manager Apogem Capital invested in software company MHC Software

Investment Highlights
  • This is Aldine Capital Partners’ 1st, O2 Investment Partners’ 1st, Strattam Capital’s 3rd and Apogem Capital’s 5th transaction in the Software sector.
  • This is Aldine Capital Partners’ 36th, O2 Investment Partners’ 8th, Strattam Capital’s 4th and Apogem Capital’s 58th transaction in the United States.
  • This is Aldine Capital Partners’ 3rd, O2 Investment Partners’ 1st, Strattam Capital’s 1st and Apogem Capital’s 2nd transaction in Minnesota.

Investment Summary

Date 2017-09-29
Target MHC Software
Sector Software
Investor(s) Aldine Capital Partners
O2 Investment Partners
Strattam Capital
Apogem Capital
Deal Type Growth Capital
Advisor(s) Daiwa Corporate Advisory Ltd. (DC Advisory) (Financial)

Target

MHC Software

Burnsville, Minnesota, United States
MHC Software provides enterprise content automation and document management software and services. MHC’s solutions accelerate customers’ digital transformation journeys via in-context content and automation to expedite information-sharing, plus reduce costs and increase productivity by leveraging web forms, workflow automation, OCR capture automation, flexible and dynamic content creation, and powerful self-service document access. MHC Software was founded in 1980 and is based in Burnsville, Minnesota.

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Investor(S) 4

Investor

Aldine Capital Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2005
Size Small
Type Sector Agnostic
DESCRIPTION

Aldine Capital Partners is a mezzanine investment firm that provides mezzanine and junior capital financing to lower middle-market companies generating sales of at least $10 million and at least $2 million in EBITDA. Aldine invests in the range of $4 to $25 million per transaction. Types of transactions include management buyouts, acquisition financings, shareholder liquidity events, recapitalizations, and growth financings of smaller middle-market companies. Aldine will consider investments across the United States, but has a primary focus on opportunities in the Midwest. The Firm will not consider investments in start-ups, turnarounds, real estate, insurance, banking, and oil/gas. Aldine Capital was formed in 2005 and is based in Chicago, Illinois.


DEAL STATS #
Overall 36 of 70
Sector (Software) 1 of 3
Type (Growth Capital) 6 of 28
State (Minnesota) 3 of 4
Country (United States) 36 of 70
Year (2017) 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-03 Network Distributors

San Jose, California, United States

Network Distributors is a distributor of critical communications networking components. Network Distributors stocks a variety of optical transceivers, which are components of networking systems such as switches and routers, manufactured by companies such as Cisco, Juniper, Brocade, 3Com, and HP. Network Distributors was founded in 1999 and is based in San Jose, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-11-30 Connecting Point Marketing Group

Rye, New Hampshire, United States

Connecting Point Marketing Group is an organizes and hosts trade events for executives in the retail, restaurant, healthcare and hotel industries for innovation. Connecting Point Marketing is based in Rye, New Hampshire.

Sell -
Investor

O2 Investment Partners

Bloomfield Hills, Michigan, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2011
Size Small
Type Sector Agnostic
DESCRIPTION

O2 Investment Partners is a Midwest US-based private equity group that acquires majority interests in small and mid-sized businesses operating in traditional industries, including manufacturing, niche distribution, select service and technology businesses. Target companies typically have stable cash flows, sustainable and defensible business models, and growth potential. O2 Investment Partners was formed in the year 2010 and is based in Bloomfield Hills, Michigan.


DEAL STATS #
Overall 9 of 23
Sector (Software) 1 of 1
Type (Growth Capital) 3 of 13
State (Minnesota) 1 of 3
Country (United States) 8 of 22
Year (2017) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-02-28 Greco Aluminum Railings

Windsor, Ontario, Canada

Greco Aluminum Railings Ltd. is a manufacturer of welded aluminum balcony railing systems. Greco’s welded railing systems are installed in both new construction and restoration projects for high, medium and low-rise condominiums, apartment buildings, hospitality and senior living facilities. Greco’s welded balcony railings are often specified by architects, engineers and developers and have received praise throughout the construction industry for their high quality, reliable and innovative designs and for their ease of installation.

Sell $28M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-02-13 Mercury Manufacturing

Wyandotte, Maine, United States

Mercury Manufacturing Co. is a designer, developer and manufacturer of custom precision valves and light mechanical assemblies for the AC/Refrigeration, Automotive and Heavy Truck industries. Mercury engineers and manufactures a variety of check valves, pressure relief valves, solenoid valves, quick adjust mechanisms for manual clutches, hydraulic shaft assemblies and a variety of other specialty valves, machined components and mechanical assemblies for a worldwide customer base. The company was founded in 1964 and is based in Wyandotte, Michigan.

Sell -
DESCRIPTION

Strattam Capital is a private equity firm focused on investing in and acquiring profitable information technology companies. Specific areas of interest include enterprise software, digital infrastructure, and tech-enabled services. Strattam pursues companies with revenues valued from $10 to $30 million and will consider opportunities throughout the US and Canada. Strattam Capital was formed in 2013 and is based in Austin, Texas.


DEAL STATS #
Overall 5 of 14
Sector (Software) 3 of 6
Type (Growth Capital) 3 of 11
State (Minnesota) 1 of 1
Country (United States) 4 of 11
Year (2017) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-11-03 Contegix

Saint Louis, Missouri, United States

Contegix is a cloud computing and managed application hosting provider that delivers Go Beyond support to global customers. The Company operates state-of-the-art, N+1 data centers, located in St. Louis, Dallas, and Amsterdam. A staff of Tier 3 engineers provides 24/7 application management and managed services with a specialty focus on supporting Atlassian application environments. Contegix was founded in 2001 and is based in Saint Louis, Missouri.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-02-22 SSB Info

Greenwood Village, Colorado, United States

SSB Info is a data management and analytics platform provider to the sports & entertainment, education, and healthcare sectors. SSB Info was founded in 2008 and is based in Greenwood Village, Colorado.

Buy -
Investor

Apogem Capital

Chicago, Illinois, United States

Category Asset Manager
Founded 2001
PE ASSETS 39.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Apogem Capital is a diversified alternative investment manager and subsidiary of insurance provider, New York Life. Apogem manages a variety of investment strategies including private equity, private credit, and real assets. Within private equity, the Firm looks to make fund, direct, and secondary investments, as well as acquire GP stakes. Within its direct investing activity, Apogem targets mid-sized companies valued up to $250 million and will consider businesses throughout North America and Europe. Apogem Capital formed as the result of New York Life combining PA Capital, Madison Capital Funding, and Goldpoint Partners into one entity. Apogem Capital is based in New York City.


DEAL STATS #
Overall 58 of 69
Sector (Software) 5 of 6
Type (Growth Capital) 5 of 10
State (Minnesota) 2 of 2
Country (United States) 58 of 69
Year (2017) 4 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-09-21 Bacharach

Kensington, Pennsylvania, United States

Bacharach is a designer and manufacturer of gas test and measurement (“T&M”) instrumentation for commercial refrigeration and HVAC equipment, and also develops performance management software for its monitoring products. Bacharach was founded in 1909 and is based in Kensington, Pennsylvania.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-10-02 Parker Food Group

Fort Worth, Texas, United States

Parker Food Group is a manufacturer of custom specialty ingredients used by a wide array of well-known food & beverage companies. Parker’s product offerings include toppings, inclusions, grinds, flavor bases, icings, swirls, and other innovative items. It has built a strong and loyal following thanks to its proven R&D team, flexibility, and capabilities to quickly deliver unique offerings using clean-label, natural, and organic ingredients. Parker Food Group was formed in 1926 and is based in Fort Worth, Texas.

Buy -