Co-Investments

Buyout of Middle Market European Online Retailer

euro-online-retailer

Type: Co-investment
Date: October 2016
Sector: Retail
Geography: Europe

Overview

  • Buyout of rapidly growing online retail business in middle market Europe
  • The business is a leading Nordic online retailer of home improvement products
  • Strong online presence with 17 sales websites, 680,000 active customers, 31% repeat orders, and 1.5 visits per second
  • Additional sales from 21 physical stores, which support the websites and act as showrooms for its top products

Investment Rationale

  • Rapidly growing business with strong management team and significantly positive customer feedback
  • Company has consistently remained a leading online retailer in its product segments
  • Strong tailwinds as market segment is less cyclical than broader retail, and online penetration expected to reach developed market levels
  • Trusted fund partner with expertise and experience investing in middle market Nordic companies, and executing on rapid growth plans

Corporate Carve-out of Software Businesses

software-business

Type: Co-investment
Date: October 2016
Sector: Technology
Geography: USA

Overview

  • Complex carve-out of the software division of a large technology company consisting of seven unique software business lines
  • The businesses acquired span a range of infrastructure software markets, including Windows Management, Information Management, Endpoint Management, Performance Monitoring, Data Protection, Identity and Access Management and Network Security

Investment Rationale

  • The complex nature of the transaction enabled Caledon’s partner to acquire the business at an attractive entry multiple
  • The businesses generate ~$350 million of EBITDA across a diverse set of end markets and use cases
  • Approximately 55% of revenues are recurring, and the combined businesses serve over 180,000 customers across 60+ countries with limited customer concentration
  • Significant potential for performance improvement given fund partners experience of optimizing similar businesses
  • Trusted, experienced fund partner with expertise and experience in executing corporate carve-outs

Central USA Physiotherapy Clinic Chain

clinic-chain

Type: Co-investment
Date: June 2014
Sector: Medical Services
Geography: USA

Overview

  • Provider of outsourced rehabilitation services in the Midwest operating 80 physical therapy clinics
  • The company has 212 licensed athletic trainers working with over 180 affiliations and an established base of over 8,000 referring physicians

Investment Rationale

  • Partnership with a strong performing fund manager well known to Caledon with significant experience evaluating the physical therapy sector
  • Attractive overall returns to equity with modest leverage in a stable and growing business
  • Healthy industry dynamics with strong growth forecast throughout the hold period
  • Experienced management team with a proven track record and a well-differentiated business model

Upstream Oil and Gas Asset Operator

gas-asset

Type: Co-investment
Date: December 2013
Sector: Energy
Geography: USA

Overview

  • Company backed by a well-known private equity fund manager to acquire and operate upstream oil and gas assets in the southern US
  • The Company will target assets with 30% – 60% proved, developed and producing low-risk reserves while developing the remaining proved, undeveloped reserves using the management team’s operational skills
  • The Company will be led by the former management team of a well-known US petroleum company

Investment Rationale

  • Partnership with a strong performing fund manager well known to Caledon with significant experience backing businesses and management teams in need of capital to drive growth
  • Attractive overall returns to equity with modest low-cost leverage
  • Experienced management team with a proven track record investing and operating oil and gas assets in the target basin