HCI Named a 2024 Top Private Equity Innovator by BluWave

WASHINGTON, DC, February 22, 2024 –HCI Equity Partners (“HCI”), a lower-middle-market private equity firm, announced today that it has been named a 2024 Top Private Equity Innovator by BluWave for exemplary innovation and leadership.

BluWave‘s third annual Top Private Equity Innovator Awards recognize the top 2% of North America’s most innovative private equity firms that excel in proactive due diligence, transformative value creation, modern private equity firm operations, and corporate citizenship practices.* The recipients were selected based upon a rigorous assessment in consultation with leading limited partners, investment bankers, service providers, and other thought leaders in the private equity ecosystem.

“We are honored to be selected as a Top Private Equity Innovator by Bluwave as this award highlights leadership in value creation and operational engagement, which are fundamental components of HCI’s strategy and approach,” said Doug McCormick, Managing Partner at HCI.  “This recognition affirms our commitment to excellence and innovation in supporting our businesses partners, and highlights HCI’s role in their journey of transformative growth.”

“The 2024 top private equity innovators are providing differential leadership in the world of business,” said Sean Mooney, founder and CEO of BluWave. “Their innovative practices are strengthening companies, creating jobs, and catalyzing a rebound in our economy.”

For further information on the BluWave 2024 Top Private Equity Innovator Awards and the recipients, please visit bluwave.net/awards.

About BluWave
BluWave is the Business Builders’ Network for private equity-grade service provider needs. The company’s platform combines AI, technology and data with concierge-like consultative support to expertly connect businesses with proven providers across due diligence, value creation and prep for sale. The BluWave Vetted™ network is an invite-only ecosystem of top-tier service-providing groups and individuals. Based in Nashville, Tenn., BluWave ranks as one of America’s fastest-growing companies and today serves hundreds of leading private equity firms and their thousands of portfolio companies. Visit BluWave.net to learn more.

*Disclaimer: BluWave’s Top Private Equity Innovator awards is a program designed by BluWave, LP. HCI did not apply or pay a fee to be considered for this award. Winning firms are selected independently by BluWave based on firm’s ESG policies, value creation strategies, firm operations and due diligence practices. This award is not to be construed as indicative of HCI’s future performance. This award represents information as of February 2024 and may not reflect important information related to an evaluation of the investment adviser which has occurred prior to, or subsequent to, the award.

*BluWave, LP has not received investment capital from and holds no ownership interest in the PE firms evaluated or recognized under the PE Innovator awards program. BluWave received no compensation from any of the PE firms in connection with this awards program. BluWave, however, may otherwise provide services to the PE firms and/or portfolio companies, but BluWave confirms that its assessment of the PE firms was independent of any such service arrangements. Top 2% in the PE industry is based on BluWave’s review of the more than 5,000 PE firms in the U.S. and Canada, from which the 82 private equity firms were selected as award recipients.

WASHINGTON, DC, January 11, 2024 – HCI Equity Partners (“HCI”), a lower middle market private equity firm that focuses on partnering with founder-owned distribution, manufacturing and B2B service companies, announced today the promotions of Dave Venker to Principal, Portfolio Operations and Andrew Carraway to Principal.

Dave Venker, Principal, Portfolio Operations joined HCI in 2019 and has played a pivotal role in identifying and executing strategic and operational initiatives across HCI’s portfolio as well as evaluating new investment opportunities. He brings a blend of experience in middle market private equity and operating roles in industrial businesses. Prior to joining HCI, Mr. Venker spent five years at The Jordan Company. Earlier in his career, Mr. Venker held various operational roles at GE and Eaton.

Andrew Carraway, Principal, joined HCI in 2015 and has played a central role in evaluating and executing HCI’s investment mandate. During his time at HCI, Andrew has closed over 15 transactions, including the formation of 4 new platforms, several exits and numerous add-on acquisitions. He has extensive experience across the spectrum of industrial products and service industries, and currently provides deal leadership for HCI portfolio companies Consolidated Hospitality Supplies, Highland Commercial Roofing and TSM Corporation. Prior to joining HCI, Mr. Carraway worked at Virginia Capital Partners, where he helped evaluate potential investments and actively supported portfolio company initiatives. Previously, Mr. Carraway played professional baseball in the Seattle Mariners system.

“We believe HCI’s success is the result of our ability to build cohesive teams and empower them to be successful,” said Doug McCormick, HCI Managing Partner. “Dave and Andrew’s promotions are an acknowledgement of their exceptional contributions and leadership within our firm, and we’re confident they will continue to grow in these new roles of increasing responsibility.”

AmerCareRoyal Completes Ninth Add-on Acquisition

EXTON, PA, January 9, 2024 – AmerCareRoyal (“ACR”), a leading supplier of disposable foodservice supplies backed by HCI Equity Partners (“HCI”), announced today the acquisition of Thermosource Tooling and Manufacturing (“TTM”). TTM is ACR’s ninth add-on acquisition since HCI’s initial investment. HCI is a leading lower middle market private equity firm that focuses on partnering with founder-owned distribution, manufacturing and B2B service companies. Financial terms of the transaction were not disclosed.

TTM, established in 2004 and headquartered in El Segundo, California, supplies thermoformed and flexible packaging solutions for foodservice, food production, and grocery applications. The acquisition of TTM offers ACR complementary product and customer segments, while expanding its capabilities in branded and customized packaging solutions, a domain where TTM excels. This combination will expand the product offering and value proposition to both TTM’s and ACR’s customers.

“TTM’s exceptional design and engineering capabilities, particularly in unique packaging formats, complement our existing product lines and capabilities, allowing us to provide a more comprehensive offering to our combined customer base,” said Scott Milberg, CEO of AmerCareRoyal. “Bringing TTM under the AmerCareRoyal umbrella presents significant cross-selling opportunities, especially in segments where we have been seeking to expand, while also growing the product offering available to TTM’s customers.”

“The TTM acquisition is a testament to our strategy of fostering growth through highly strategic acquisitions for our portfolio companies,” said Doug McCormick, Managing Partner at HCI. “We’re excited about the potential TTM brings to enhance ACR’s service offerings and market positioning, and we welcome the talented TTM team.”

“TTM is proud and very excited to join HCI and the AmerCareRoyal family of businesses,” said Paul Smith, President of TTM. “Being able to access ACR’s strong customer relationships, North American distribution network, and professional sales force is a perfect fit for TTM. We are looking forward to adding to the fantastic growth of the combined businesses.”

Greenberg Traurig served as legal counsel to ACR. CriticalPoint Partners acted as the financial advisor to TTM and Jeffer Mangels Butler & Mitchell served as legal counsel.

About AmerCareRoyal
AmerCareRoyal is a single stream resource for essential packaging and preparation products used in the foodservice, janitorial, sanitation, industrial, hospitality, and healthcare industries. With multiple shipping points across North America, our family of companies service national level customers with outstanding customer service and an ever-growing product line. For more information, please visit www.amercareroyal.com.

About Thermosource Tooling and Manufacturing
Thermosource Tooling and Manufacturing (“TTM”) established in 2004 and headquartered in El Segundo, California, supplies thermoformed and flexible packaging solutions for foodservice, food production, and grocery applications. For more information, please visit https://www.thermosourcetooling.com/.

About HCI Equity Partners
HCI Equity Partners is a lower middle market private equity firm focused on partnering with family and founder-owned distribution, manufacturing, and service companies. HCI is headquartered in Washington, DC. For more information, please visit oridiancapital.com/.

Adds Two Companies to HCI’s Lawn Care Treatment Platform Formed in June 2023

BROOMALL, PA, and MEDINA, OH, January 4, 2024 – HCI Equity Partners (“HCI”), a lower-middle market private equity firm, today announced the acquisitions of Delaware Valley Turf (“DVT”) based in Broomall, PA and Brookside Lawn Service (“Brookside“) based in Medina, Ohio. The acquisitions represent HCI’s third and fourth investments in the firm’s strategy to consolidate companies in the large and fragmented market of residential lawn care treatment, tree and shrub services, and pest control. The financial terms of the transactions were not disclosed.

DVT is a founder-owned provider of lawn care treatment and tree, shrub and pest control services to residential customers in the Philadelphia metro. DVT expands the platform’s presence in Pennsylvania, representing the third acquisition in the state.

Brookside, also founder-owned, provides a similar suite of lawn care, tree and shrub, and pest control services to residential customers in the Cleveland and Akron metropolitan areas. Brookside expands the platform’s geographic footprint and represents HCI’s first acquisition in Ohio.

“Both acquisitions perfectly fit our mandate of acquiring the highest quality, service-focused lawn care treatment providers,” said Nate Novak, Principal at HCI. “We are delighted to partner with the strong, established management teams at DVT and Brookside, and to help them accelerate their growth plans.”

Doug McCormick, Managing Partner at HCI, said, “We are pleased with the early progress of our thesis-driven consolidation strategy in the lawn care treatment space, and we are excited to partner with such quality companies. We expect to build on our strategy of partnering with family and founder-owned businesses to become the acquirer of choice in the lawn care treatment industry.”

Quarles & Brady served as legal counsel to HCI.

About HCI Equity Partners
HCI Equity Partners is a lower-middle market private equity firm focused on partnering with family and founder-owned distribution, manufacturing, and service companies. HCI is headquartered in Washington, DC. For more information, please visit oridiancapital.com/.

About Delaware Valley Turf
Delaware Valley Turf is a provider of lawn care, tree and shrub, and pest control services to residential customers in the Philadelphia metro. For more information, please visit www.delawarevalleyturf.com.

About Brookside Lawn Service
Brookside Lawn Service is a provider of lawn care services including lawn fertilization, insect and weed control, and tree and shrub care to residential customers in the Cleveland and Akron metros. For more information, please visit https://www.brooksidelawnservice.com/.

WASHINGTON, D.C. (December 7, 2023) – HCI Equity Partners (“HCI”), a lower middle market private equity firm that partners with founder-owned distribution, manufacturing and B2B service companies, today announced it has been recognized by Inc. for the fourth consecutive year as a 2023 Top Founder-Friendly Investor. Inc.’s annual list recognizes private equity and venture capital firms that have the best track record of successfully backing entrepreneurs and remaining actively involved with the businesses they invest in.

“We are honored to receive this award for the fourth consecutive year, and it serves as a testament to our unwavering commitment to fostering value-driven partnerships with founder-led enterprises,” said Doug McCormick, Managing Partner at HCI. “Our collaborative approach is tailored to not only propel growth, but also enhance operational robustness across our portfolio companies.”

Inc. compiled the 2023 list by selecting firms that entrepreneurs collaborate with and trust as they receive the financial support they need to help drive growth. Founders shared with Inc. their experiences with private equity firms and the data confirming how their companies grew during the partnership.

“HCI has been a great partner in supporting MSI Express’ transformational growth over the past few years, both organically and through M&A. We have quickly become a leading player of scale in the food co-packing and co-manufacturing space, with an expansive set of capabilities to support our customers and continue gaining share in the sector,” said Charles Weinberg, CEO of MSI Express. “Our revenues have grown more than ten-times since HCI’s initial investment, and we are poised to continue this trajectory as we anticipate new business wins and a near-record sales pipeline. We’re excited about the future and glad to have HCI as our business partner.”

“We take immense pride in this recognition from Inc., as our ‘business partner first’ philosophy continues to be the cornerstone of our investment strategy,” said Bob Hund, Operating Partner at HCI. “In an era where founder-led firms seek not just capital, but a partner with expertise and understanding of their unique challenges, our collaborative approach is critical to our engagement model.”

 

Disclaimer:

Inc. Magazine’s Founder-Friendly Investors is a published list of U.S. founder-friendly private equity firms. HCI has paid a fee to be considered for this recognition. Private equity firms that have exited U.S.-based, founder-led, public or private, portfolio companies within the past five years were eligible to apply. This recognition is based on the analysis of and information gathered by Inc. Magazine using its own criteria and methodologies. As part of the vetting process, Inc. Magazine interviewed one or more portfolio company representatives about their experience partnering with HCI. For investments to qualify, portfolio company founders must have remained actively involved in their business for at least one year post-investment. The complete list of private equity firms considered for this award is not known to HCI. The award reflects information about a sample of portfolio companies and may not be representative of every portfolio company’s experience with HCI. There is no guarantee that similar awards will be obtained by HCI in the future. Portfolio companies should make their own determinations about the prospects of partnering with HCI.

BluWave’s Influence of Private Equity Report reveals that PE-backed companies on the 2023 Inc. 5000 Fastest Growing Companies list grew revenue by 480% and drove 64% of job creation.

NASHVILLE, Tenn. – December 5, 2023 – BluWave, the Business Builders’ Network that connects the private equity industry with best-in-class talent, industry consultants and service providers, today released its Influence of Private Equity Report that captures the impact PE has on America’s fastest-growing companies.

BluWave’s analysis reveals that the private equity industry has played an outsized role in the growth and development of the 2023 Inc. 5000 Fastest Growing Companies awardees. Private equity-backed Inc. 5000 companies have added more than 800,000 jobs over the past three years. While these companies represent approximately 11 percent of the Inc. 5000, they account for 64 percent of the 1.2 million jobs added by Inc. 5000 awardees over the past three years.

The influence of PE-backed companies extends beyond job creation. The analysis found that private equity-backed companies grew remarkably fast, with an average growth rate of 480 percent in total revenue over the three-year review period.

“BluWave’s ongoing series of Private Equity Insights Reports have revealed that the PE industry fuels significant growth in large part due to the industry’s meaningful provisioning of strategic resources,” said Sean Mooney, founder and CEO of BluWave. “This helps their portfolio companies expand in more accelerated, predictable and confident ways. BluWave’s Q3 2023 Insights Report highlighted that more than 75 percent of all projects conducted by the private equity industry in 2023 were related to creating value in their portfolio companies.”

HCI Equity Partners, a lower-middle market private equity firm headquartered in Washington, D.C., serves as an example of one such PE firm. HCI has four of its portfolio companies recognized on the Inc. 5000 list. These companies provide valued products and services to the food, preventative maintenance, protective gear and hospitality markets. The diversity of industries represented also illustrates the wide range of end markets benefiting from private equity investments.

“We are immensely proud to have four of our portfolio companies recognized in the Inc. 5000 list,” said Doug McCormick, Managing Partner and Chief Investment Officer at HCI Equity Partners. “It’s a privilege to support the growth and development of such amazing businesses, while providing value to our stakeholders and creating jobs that are built to last.”

“Through thoughtful partnership, HCI has added value across multiple areas of our organization,” said Scott Milberg, CEO of AmerCareRoyal, a single-stream resource for disposable products. “In addition to providing access to capital and strategic support, the operational engagement they provide helps us successfully deliver transformational initiatives and accelerate our growth.”

Further indicating private equity’s outsized role in the fastest-growing companies, BluWave’s analysis also reveals that approximately 11 percent – or more than 550 of the Inc. 5000 companies on the list, are backed by private equity firms.

To learn more, download a copy of the full report – https://bit.ly/3TkpZ7P

Launches a new HCI platform in the large and fragmented automotive aftermarket industry

Fort Smith, AR, November 7, 2023 – HCI Equity Partners (“HCI”), a lower middle-market private equity firm, today announced the recapitalization of Tri-State Enterprises, Inc. (“Tri-State” or the “Company”) in partnership with management. Financial terms of the transaction were not disclosed.

Tri-State is based in Fort Smith, Arkansas, and is a warehouse distributor of automotive aftermarket hard parts, consumables, accessories, and paint. The Company serves automotive service centers, independent parts and accessories stores, e-commerce retailers, and business fleets, and also operates a network of company-owned stores.

The Company was founded in 1977 and acquired by long-time employee, Tristan Taylor, in 2015. Since that time, Tri-State has experienced rapid growth, culminating in its acquisition of fellow Parts Plus member WM Automotive in 2021.

Tristan Taylor, CEO of Tri-State, said, “Since the acquisition of WM Automotive and the opening of our 492,000 square foot Arlington Warehouse, the Tri-State team has had their eye on several new territories and further product line expansion to better serve its customer base. HCI is the perfect partner to help us accelerate that growth. We are confident that their expertise in supporting growing businesses will help us implement our vision for future growth. Our commitment to customer satisfaction remains at the forefront of our business strategy, and HCI shares that view.”

Scott Gibaratz, Partner at HCI, said “HCI is excited to partner with the management team of Tri-State. We share a common vision for the future and will support the Tri-State team with our resources and expertise to help them continue their extraordinary growth and best-in-class customer service. Tri-State represents a unique opportunity to partner with a dynamic growth platform in the fragmented automotive aftermarket industry.”

“Our biggest goal in looking for a new financing partner was to find someone that shared our values. They needed to be a cultural fit for us. Throughout this entire process, I have been impressed with the HCI team and how they took the time to understand what makes us tick. We are extremely grateful for their trust and look forward to the future as we expand Tri-State Enterprises,” said Tristan Taylor.

Dickinson Wright PLLC served as legal counsel to HCI. Mitchell, Williams, Selig, Gates & Woodyard, PLLC served as legal counsel to the Company.

About HCI Equity Partners

HCI Equity Partners is a lower middle-market private equity firm focused on partnering with family and founder-owned distribution, manufacturing, and service companies. HCI is headquartered in Washington, DC. For more information, please visit oridiancapital.com/.

About Tri-State Enterprises, Inc.

Tri-State is a family-operated automotive aftermarket distributor headquartered in Fort Smith, Arkansas, with locations throughout Arkansas, Missouri, Oklahoma, and Texas. The Company specializes in automotive hard parts, consumables, truck accessories, car audio/electronics, and paint. Operating out of approximately one million square feet of warehouse space, the Company has partnered with a comprehensive set of the major parts and accessories brands in the industry to best serve its customers. Tri-State is a member of the Pronto Network and the AAM Group. For more information, please visit www.etristate.com.

WASHINGTON, DC, October 23, 2023– HCI Equity Partners (“HCI”), a lower middle-market private equity firm, today announced that Nick Baltz has joined the firm as an Associate to help evaluate, analyze and monitor investments made by the firm.

“Attracting and building talent of all levels continues to be a priority at HCI, and as we continue to evaluate the combined experience of our teams, we’re excited to welcome Nick as our newest associate to support our firm’s investments across the manufacturing, service and distribution industries,” said Doug McCormick, Managing Partner at HCI. “He brings solid experience in M&A, transactions and finance that we know will be valuable to our firm.”

Prior to joining HCI, Mr. Baltz was an associate at Jefferies, where he focused on executing middle-market mergers and acquisitions and capital-raising transactions for consumer product and services companies.

Mr. Baltz is a graduate of the McIntire School of Commerce at the University of Virginia.

OCTOBER 20, 2023 – We are proud to announce that Sutton Place Strategies has named HCI a top quartile deal originator for the lower middle market! This part of the market includes deals with a $10-249 million enterprise value range. SPS released their 2023 PE Deal Origination Benchmark Report last week which is the industry standard for private equity deal sourcing analytics. The report provides an objective analysis of HCI’s sourcing performance in the context of its peers. We have sourced over 2,000 deals in the last year alone, thanks to the great work Tim Frend and Michael Allen do leading our business development efforts.

Learn more about HCI’s investment strategy here or reach out to Tim Frend at tfrend@hciequity.com or Michael Allen at mallen@hciequity.com.

SPS Bain & Company (now called Sutton Place Strategies (SPS) by With Intelligence as of 2025) recognized Oridian as a top quartile deal originator in the lower middle market for deals sourced through LTM June of each year above. The award is typically issued in September of each respective year. Oridian did not pay a fee or apply to be recognized as a top quartile deal originator for the lower middle market. For more detail on this award, contact Tim Frend at tfrend@oridiancapital.com.

New Investor Vestar Joins Existing Investor HCI Equity Partners to Accelerate Strategic Growth Initiatives

GREENVILLE, S.C., Oct. 5, 2023 — Tech24 (or “the Company”), a national leader in commercial foodservice equipment repair and maintenance, announced today that Vestar Capital Partners (“Vestar”) has joined as a new investor alongside existing shareholders HCI Equity Partners (“HCI”) and the Company’s management team.

The new investment will support Tech24’s continued organic and acquisitive growth in new and existing geographies and end markets. Founded in 1982 and headquartered in Greenville, SC, Tech24 provides comprehensive repair and preventive maintenance solutions for commercial refrigeration, cooking, beverage, and HVAC equipment. Tech24 currently services over 50 major markets in 26 states, and its diverse customer base includes restaurants, grocery and convenience stores, retailers, schools and universities, and corporate and government facilities. The Company has completed 19 acquisitions since 2020.

“Vestar’s deep experience in both commercial facilities services and the foodservice end market, as well as its track record in partnership-oriented sponsor recapitalizations, positions the firm as a perfect partner for Tech24 as we look to find new ways to accelerate growth,” said Dan Rodstrom, CEO of Tech24. “We are pleased to welcome Vestar and are eager to work alongside their team and our existing investor HCI as we focus on our active acquisition pipeline.”

“Tech24 has an impressive national footprint and a proven track record of delivering high-quality, mission-critical services to its customers,” said Nikhil Bhat and Jake Olson, Managing Directors at Vestar. “We are excited to partner with management and HCI to leverage our sector expertise and 35 years of investing experience to enable the Company to capitalize on its numerous attractive growth opportunities.”

“We are proud of the transformational growth and the foundation the Tech24 team has built over the last three years,” said Doug McCormick, Managing Partner at HCI Equity Partners. “We believe Tech24 has differentiated itself both as a service provider and an acquirer in the highly fragmented commercial food equipment repair market and we are excited for the next phase of growth with the Vestar team.”

Solomon Partners served as financial advisor and Quarles & Brady LLP served as the legal advisor to Tech24 and HCI. TD Cowen acted as financial advisor, and Kirkland & Ellis LLP acted as legal advisor to Vestar.

About Tech24
Tech24 is the industry leader in commercial foodservice equipment repair and maintenance, providing quick and comprehensive repair and preventive maintenance solutions for commercial refrigeration, cooking, beverage, and HVAC equipment. Founded in 1982 in Greenville, SC, Tech24 currently services over 50 major markets in 26 states from coast to coast and employs over 850 highly qualified service technicians that are equipped with the tools, technology and training they need to get the job done right. To learn more about Tech24, visit https://www.mytech24.com/.

About Vestar Capital Partners
Vestar Capital Partners is a U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Business & Technology Services and Healthcare. Since inception in 1988, Vestar funds have invested over $11 billion in 92 companies – as well as more than 200 add-on acquisitions – with a total value of approximately $52 billion. For more information on Vestar, please visit www.vestarcapital.com.

About HCI
HCI Equity Partners is a lower market private equity firm focused on partnering with family and founder-owned distribution, manufacturing and service companies. HCI is headquartered in Washington, DC. For more information, please visit oridiancapital.com/.