“Toto, I’ve a feeling we’re not in Denver anymore.” Well, the Atlanta office is up and running and, along
with Denver, busy!
In May, we completed the firm’s first investment in the South East, a $6.2 million equity investment as a
part of the recapitalization of CanGen Holdings. Headquartered outside of Atlanta, Georgia, CanGen
supplies highly engineered wear parts, including feed screws, barrels, cross heads and check valves, to
extruders and injection molders of plastic and rubber products. CHB partnered with existing management
to buy out the Company’s majority owner and support the Company’s continued growth.
We had a second close of $50 million, in aggregate, on CHB Capital Partners III in May. We are in
discussions with a number of additional institutional investors and expect to have a final close in the 4th
With a welcome assist from a strong economy, our portfolio companies may be even busier than we are.
HiRel Systems, a Minnesota based manufacturer of custom magnetics and power supplies, is on track to end
the year up 25% over last year, in part due to the acquisition of ZMAN Magnetics, which the company
closed in October, 2004. HiRel continues to invest in its infrastructure and now has facilities in China, the
Dominican Republic and the US.
After another record year in 2004, Alternative Technology, a Denver based distributor of software and
hardware for a variety of edge network applications, is on pace to grow 30% again in 2005.
CT Systems spent the last several months taking a hard look at a number of small cable and wire harness and
electromechanical integrators and assemblers in the Midwest. The Company continues to seek small
acquisition candidates in that area with revenue of $3 to $15 million where CT Systems can leverage their
existing operating infrastructure.
Micro Dynamics continues to expand and grow rapidly. In May, the company completed the acquisition of
Logic PD, a Minneapolis-based product design and engineering firm. The acquisition of Logic allows Micro
Dynamics to provide its OEM customers with a complete soup-to-nuts EMS service offering from product
design and engineering to manufacturing and fulfillment.
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 $10 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, Frederick Antwi,
Amy Mulkey, David Anderson & Andrea Kasper
511 Sixteenth Street, Suite 600, Denver, CO 80202
P: (303) 571-0100 F: (303) 571-0114
75 Fifth Street NW, Suite 1025, Atlanta, GA 30308
P: (404) 806-7520 F: (404) 806-7530