Co-Investments

Franchisor in Signage and Visual Graphics

Date: November 2019
Sector: Business Services
Geography: U.S. and international locations

Overview

  • The company is a market leading franchisor in the signage and visual graphics market. The franchised units sell a broad set of graphics-related products and services (i.e. signs, vehicle graphics, uniforms, banners, directories, installation) to a diversified mix of small to medium sized businesses
  • This transaction is currently undergoing a sales process, with potential of pre-emption in early-February
  • CBRE Caledon is currently co-underwriting this transaction alongside the sponsor, who is a mid-market CBRE Caledon anchored GP
  • CBRE Caledon is in the process of participating in a potential equity committed pre-emptive bid

Investment Rationale

  • This represents an attractive investment opportunity given its strong franchisee relations, leading market position, attractive unit economics, robust whitespace opportunity and diversified revenue mix
  • CBRE Caledon was offered to invest up to US$50 million for the transaction, which represents a meaningful amount of the total equity value
  • Leading market positions with a growing unit base in the U.S. and abroad
  • Attractive unit economics within the industry and strong franchise value offering
  • Diversified product and geography exposure
  • Multiple post-close initiatives and growth levers to drive additional upside

Software-as-a-Service provider of Enterprise Governance software

Date: January 2018
Sector: Technology
Geography: North America

Overview

  • SaaS company that provides secure Enterprise Governance Management (“EGM”) software and is the market leading platform for secure collaboration, communication and meeting management for boards, committees, and leadership teams
  • Financial partner’s $400 million structured equity investment represents 100% of the Series C Convertible Preferred Equity and is the most senior tranche of equity. Upon sale, it will be converted into common equity

Investment Rationale

  • Attractive risk-adjusted return with strong downside protection and significant upside potential
  • Market leader in the EGM software space with an attractive SaaS business model and strong financial profile
  • Highly experienced management team and financial partners
  • Prior co-investment experience with the financial partner

Leading non-asset, agent based 3rd Party Logistics (“3PL”)

Date: December 2019
Sector: Third Party Logistics Provider
Geography: North America

Overview

  • CBRE Caledon co-underwrote the buyout of a leading agent-based (non-asset based) 3rd Party Logistics provider focused on delivering Truckload,
    Less-than Truckload, Intermodal, Air, and Ocean Services in North America.
  • CBRE Caledon will represent our clients through an observer seat on the company’s board.
  • The company is one of a limited number of logistics brokers with >$1 billion in Gross Revenues.

Investment Rationale

  • Company serves a diverse group of end markets without customer or carrier concentration.
  • Increased scale provides a number of benefits, including broader carrier relationships across modes and geographies, route density, pricing power, etc.
  • Multiple growth levels, including: recruiting and onboarding new agents; M&A opportunities; and investing in a stronger technology platform to improve existing agent productivity and to attract new customers.

Provider of subscription-based data and analytics

Date: May 2019
Sector: Technology, SaaS
Geography: North America

Overview

  • CBRE Caledon acquired a structured equity stake in a leading data services and analytics company.
  • The company is a leading provider of data and analytics for real-time risk assessment and mitigation focused on the Public Safety, Healthcare, and Retail sectors. The Company combines unique real-time data and connectivity infrastructure to deliver value to an integrated ecosystem of customers in their core markets.

Investment Rationale

  • Market leader with high barriers to entry. The Company has amassed over 50 billion record of proprietary data that cannot be replicated across the Public Safety, Healthcare and Retail end markets.
  • Market-leading or only solution across multiple verticals; The company currently has no pure play competitors in any individual business unit, although there are smaller competitors for individual product lines.
  • Highly diversified customer base and product offering with over 15 revenue generating products and top 10 customers representing less than 10% of the revenue.
  • SaaS business model with strong financial profile and operating leverage. Over 90% recurring revenue base generates highly predictable EBITDA and cash flows.

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