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Thermo Capital Partners
LLC, ("TCP") headquartered in New Orleans, LA., was formed to provide growth
capital to small and medium sized companies. TCP believes that the
consolidation of the financial services and banking industries is not
adequately serving those businesses and anticipates that the trend will
continue with the further globalization of the financial services industry. The
firm is interested in the areas where it sees significant opportunity and has
strong capabilities, proprietary deal flow and excellent reputation. The
Company chose New Orleans as its headquarters because it believes that the
mid-South has been underserved and recognizes the positive growth factors in
the region.
TCP is interested in providing capital to proven management
groups who require strategic capital for organic growth, acquisitions or
changes in ownership. TCP is focused on investments from $5 to $50 million in
telecommunications, business services, industrial and technology companies. In
exchange for its investment, TCP expects a majority investment position and
significant ownership in the venture. Historically, TCP has worked closely with
its management teams serving as an experienced resource in strategic and
financial decisions and in responding constructively to market changes. TCP and
its affiliated companies have successfully employed a strategy of management
autonomy and have structured incentives to align shareholder and management
interests. TCP works with management to set realizable milestones which are
critical steps in achieving the broader strategic goals. These milestones
incorporate performance measures and associated economic incentives that create
near term and long-term opportunity for management.
TCP has invested and
is active in the following companies:
- United Engines LLC, (www.unitedengines.com). During 2001, Thermo and a senior
management team made a $10 million investment to purchase two related
companies, United Engines and UE Manufacturing (collectively "United"), in the
diesel engine distribution and power transmission businesses. United sells
engineered equipment, parts and service to numerous markets including
transportation, drilling, power generation, and oil field services. Combined
revenues will approach $150 million (from $60 million in 2002) and United is
expected to continue to show a top line annual growth rate of greater than 30%.
The three-member management team and 20% ownership group were previously senior
managers at Stewart and Stevenson Services, including its past President/CEO,
Senior Vice President for Distributor Operations and its Vice President of
Manufacturing.
- Thermo Credit LLC ("Thermo Credit"
www.thermocredit.com). Thermo Credit is a receivables
funding company focused on opportunities in the telecommunications industry. In
2002, TCP sponsored a management team of industry professionals and has fully
funded its business plan. Thermo believes there is a growing demand for capital
from well run, small companies with sales of $10 - $25 million a year who,
because of their size and their exposure to the telecommunications industry,
cannot raise sufficient capital to run and grow their businesses. The Company
believes there is no other factoring company solely focused on this micro-cap,
telecommunications niche, and as such believes there is significant opportunity
due to the large size of the market opportunity, the barriers to entry, and
positive growth in this segment of the telecommunications industry.
- Xspedius Management Corp. LLC ("XMC"
www.xspedius.com). 98%
Thermo owned XMC acquired substantially all of the assets of e.spire
Communications, Inc. ("e.spire") pursuant to a sale order by the US Bankruptcy
Court. XMC acquired e.spire's competitive local switching and fiber assets in
36 markets spanning 19 states. XMC is an integrated communications provider and
offers business customers traditional local and long distance, dedicated
Internet access, and advanced data solutions, including ATM and frame relay.
TCP also committed additional capital to facilitate XMC's turnaround and
growth. The e.spire assets and operations acquired by XMC have an original
invested capital basis of $1.6 billion and generated approximately $200 million
of revenue in 2002.
- Xspedius Holdings Corp. ("XHC"
www.xspedius.com).
Thermo made a $ 6 million investment into XHC, a competitive communications
carrier based in Lake Charles, La. XHC offers integrated voice, data and
Internet services to small and medium-sized businesses throughout the southeast
and offers dedicated Internet service through SDSL and T-1's. TCP believes the
XHC's management team has created one of the best-run competitive carrier
organizations based upon its low cost of operation, high historical growth
rate, demonstrated capacity for future growth and its fully funded business
plan. In April of 2003, Thermo arranged the merger of e.spire Communications,
owned 98% by Xspedius Management Company, a Thermo affiliate, and Xspedius
Holdings which has resulted in a profitable company with a 2004 revenue of
approximately $250 million.
- FiberLight, LLC ("FiberLight"
www.fiberlight.com).
FiberLight sells and leases dark fiber and conduit. FiberLight has fiber and
conduit inventory in Texas, Georgia, California, Virginia, Florida, Maryland
and the District of Columbia. In addition to sales and leasing of it's fiber
inventory, FiberLight also provides fiber optic project management,
engineering, construction and turnkey maintenance services to enterprise
customers, municipalities, and other communications companies. Thermo is
actively involved in FiberLight's restructuring and augmenting FiberLight's
business model.
- Globalstar Satellite Communications ("Globalstar"
www.globalstar.com).
Thermo has agreed to make a $43 million investment in Globalstar to permit
Globalstar to emerge from Chapter 11 protection. The initial funding under this
plan was made December 5, 2003. Globalstar is the world's most widely used hand
held satellite voice and data system and can operate in more than 100
countries. Thermo is working with management to refocus its business plan,
target industry segments and increase its capabilities and product offering.
2005 revenue is expected to be approximately $125 million with an EBITDA of
approximately $25 million.
TCP has also made investments in two funds, Prudential Capital
Partners, L.P. ("PCP") and Meritage Private Equity Fund, L.P. ("Meritage",
www.meritagefunds.com)
to enhance its deal flow and expand its network of resources. PCP is a $600
million mezzanine fund with exclusive access to Prudential Capital Group's
mezzanine deal network. The fund is focused on the middle market with a
preference for manufacturing and service companies and has a fundamental value
orientation, which stands to benefit from the disruptions in the high yield
bond market. Meritage provides private equity to companies focused on
communications networks and communications services with areas of focus in
broadband, wireless and outsourced services. The fund is primarily an investor
in early stage growth companies. |
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