Well, we hate to admit it but we've been reduced to "snow
dancing" here in Denver as the temperatures have been in the
mid-70's far too long for those of us with investments in
ski apparel companies. We encourage all readers of this newsletter
to do the same.
With the addition of Steve Greene in July, we completed our
staffing for the second fund. Previously Steve worked with
McKinsey & Co. in Pittsburgh and is a graduate of the University
of Notre Dame.
In June we closed our investment in MACTEC, Inc., a Golden,
CO based environmental services company with gross revenues
of about $160 million. MACTEC's growth strategy is based on
filling out its service/geography coverage through acquisition
while growing its government nuclear business and entering
the market for commercial nuclear power plant decommissioning.
Since closing, the company has made one acquisition, has another
under a letter of intent and is in discussions with several
other interesting candidates.
In August we made a follow-on investment in Champion Technologies,
Inc. to support future growth. By September and October the
company had set new monthly sales records as the telecom and
datacom markets heated up considerably. CTI has expanded its
customer base to include not just the first tier telecom players
like Ericsson, Nortel and Lucent that have historically been
their core customers, but also component suppliers and contract
electronics manufacturers. In addition, the company has entered
the datacom markets focusing on Internet infrastructure suppliers.
We are looking forward to a strong year for Champion.
In November we closed an investment in USA Capital, a Denver
based small ticket leasing company with origination volume
of about $60 million. USA Capital's strategy focuses on bringing
a franchise model to the independent broker dominated market
for small ticket equipment leasing. The model allows the broker
to maintain independence while receiving the infrastructure
benefits of a much larger organization in return for channeling
100% of their origination volume to USA Capital.
We encourage you to call us with interesting investment opportunities
within the closely-held and family owned business market.
We look for transactions where we can invest equity capital
in established companies with $20 million or more in revenue.
Should you call, we guarantee you a thoughtful and timely
Tad Kelly, John Flanigan, Blake Morris, Grant Clayton, Sean
McClenaghan, Steve Greene & Nancy Thayer
Sixteenth Street, Suite 600 Denver, CO 80202
Telephone: (303) 571-0100 Facsimile: (303) 571-0114