CHB Capital Partners

Current Newsletter

Spring 2008

Past Newsletters

Winter 2007

Summer 2005

Winter 2004

Fall 2004

Winter 2003

Spring 2002

Winter 2001

Spring 2000

Fall 1999

Spring 1999

Summer 1998

Fall 1997

Spring/Summer 1997

Winter 1997

Summer 1996

Winter 1996


Winter 2004

We've got too many balls in the air to both adhere to our strict one page limit and have the usual breezy introduction, so without further ado ...

In August of 2003 we hired a new Office Manager, Andrea Kasper. She will lose her status as the most recent hire in March when we will be joined by Frederick Antwi — our newest Analyst. Previously, Frederick worked at Gap, McKinsey & Company and Morgan Stanley, and is a graduate of Harvard College.

In January we completed an $8.2 million investment in Cable-Tech Industries, LLC. Headquartered in Lenexa, KS, Cable-Tech is a manufacturer of complex sub-assembly, final assembly and turnkey electro-mechanical products on an outsourced basis with end use applications in the railroad, air traffic management and other industries. The company has grown rapidly over the last several years and sought outside capital to support further growth and provide partial liquidity to shareholders. Already, we are working with management on a number of growth initiatives, including potential acquisitions.

Let it snow, let it snow, let it snow. Well, it has, and Spyder is having its usual fantastic winter. Sales this season will be up around 40% over last season as the company continues to expand its product line. For the 2003/2004 season the company introduced a sub-brand (Stryke) to compete against lower priced "Spyder knock-off" competitors and the company has launched a new snowboard collection for 2004/2005 under the brand names of Section and Legion.

Alternative Technology posted a record year in 2003, growing sales nearly 15% despite still sluggish IT spending throughout much of 2003. Volume in the last several months has picked up considerably and management is excited about being on the "right" side of the IT spending curve in 2004.

Last year was all about growth at HiRel Systems (previously Schott High-Reliability). In February, the company purchased a semiconductor equipment product line from Schott Corporation. In August, HiRel acquired DT Magnetics, formerly a division of Dover Corporation. The acquisition of DT substantially broadened HiRel’s customer base and industries served, and increased its engineering and sales capabilities. HiRel’s sales nearly doubled in 2003 and the company enjoyed record profitability while de-levering the business.

We are currently in the market raising CHB Capital Partners III with a target of $100 million. We expect a first close including many existing investors along with a few new institutional investors by the end of the first quarter.

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 $15 million or more in revenue. Should you call, we guarantee you a thoughtful and timely response.

Tad Kelly, John Flanigan, Blake Morris, Grant Clayton, Sean McClenaghan, Kyle McNeal & Andrea Kasper


511 Sixteenth Street, Suite 600 Denver, CO 80202
Telephone: (303) 571-0100 Facsimile: (303) 571-0114