PITTSBURGH – September 3, 2020 – Buchanan Ingersoll & Rooney represented Tecum Capital Partners, a Pittsburgh-based private equity firm, in an acquisition financing transaction alongside Everside Capital Partners, a New York-based asset management firm, for an investment in an undisclosed government contracting business led by Broadtree Partners, a Charlotte-based lower-middle market private equity firm. The Buchanan team advised Tecum through the transaction which involved a combination of mezzanine debt and preferred equity financing.
“We are pleased to have been able to leverage our extensive debt and equity financing and underlying acquisition expertise to complete this transaction and we look forward to continuing our partnership with the Tecum team,” said Sean Girdwood shareholder and co-chair of Buchanan’s Finance industry team.
“We’re thrilled that we were able to assemble a high-caliber team to advise Tecum Capital Partners on each of the components of this significant transaction as the firm continues to execute on their growth strategy,” added Adam Wicks, who led the equity financing and acquisition aspects of the transaction out of the firm’s Corporate section.
“Working with Buchanan’s Finance and Corporate teams feels like a true extension of our firm. They understand our space, complex acquisitions and have expertise across a wide range of industries which align with our investments,” said Jack Surma, senior associate at Tecum Capital Partners.
Tecum and Everside Capital Partners provided subordinated debt and equity to support Broadtree Partners’ acquisition of the target company. The investor trio partnered with the sellers and existing management team, who will remain with the company and retain a significant stake in the business to help guide the company through its next stage of growth. The financial terms of the transaction were not disclosed.
“We are enthusiastic about all the new partnerships formed on this deal. Buchanan in particular was excellent to work with and integral to the transaction closing successfully” said Francesco Sala, senior associate at Everside.
Brad Batten, managing partner at Broadtree, commented on the transaction, “We are excited to partner with Tecum, Everside, and the sellers on the investment in the Company. Over its long history, the Company has established a reputation as a market leader offering reliable, high-quality, cost-effective, and differentiated services. We look forward to continuing this legacy while also leveraging Broadtree’s best-in-class operational resources to further accelerate the growth of the business.”
The transaction was led by Sean Girdwood and Adam Wicks, with key assistance from Brian Sullivan, associate in Finance, and additional support from Kelly Neal, shareholder in Bankruptcy & Creditors’ Rights, Bruce Booken, shareholder in Tax, Phil Weis, shareholder in Employment Rights & ERISA, and Lindsey Holzer, associate in Real Estate.
The Deal Team from Tecum consisted of Tyson Smith, Jack Surma, and Dan Drew. The Deal Team from Everside consisted of Moritz Poehl and Francesco Sala. The Deal Team from Broadtree Partners consisted of Brad Batten and Colin Murphy. Joe Jordan of Actuparo advised the Broadtree Partners team on the transaction as well.
About Tecum Capital Partners
Tecum Capital Partners is an independent investment firm based in Pittsburgh, Pennsylvania with over $750 million in assets under management. Tecum is a multi-strategy investor and is currently investing out of its second SBIC Fund. The investment team partners with independent sponsors, family offices, business owners seeking succession plans, and management teams to create shared success. Since 2006, Tecum’s investment professionals have invested in over 85 platform and add-on acquisitions. Tecum specializes in growth-oriented, middle-market companies across the broader high-value manufacturing, value-added distribution, and business service sectors, with a focus on businesses with EBITDA greater than $3 million. Tecum seeks to invest $5 million to $20 million in potential portfolio companies. For more information, please visit www.tecum.com.
About Broadtree Partners
Broadtree Partners, headquartered in Charlotte, North Carolina, is a lower-middle market PE firm with an operator-centric model. Broadtree’s unique executive-in-residence approach allows owners to either smoothly exit their companies and seamlessly change leadership while preserving their legacy; or to bring operational and financial resources to a founder-led team to further accelerate growth. Broadtree’s team of operators and entrepreneurs work very closely with owners throughout the transaction process and transition to running the day-to-day operations after an acquisition. Broadtree seeks to partner with business owners and entrepreneurs to provide operational resources and institutional capital to transform and grow founder-owned businesses in the lower middle market. Broadtree’s goal is to fuel stable, long-term growth while preserving the company’s core values. For more information, please visit www.broadtreepartners.com.
About Everside Capital Partners
Everside, an SEC Registered Investment Adviser, is a New York based asset management firm focused exclusively on the lower middle market. The firm is led by a team with extensive backgrounds in credit, direct investing and origination from top global institutions. Everside focuses exclusively on partnering with Small Business Investment Companies (SBICs), primarily by providing partnership capital (“Primaries”), the purchase of secondary investments (“Secondaries”), as well as by participating in select credit co-investments (“Directs”). Everside offers a collaborative solution based on transparency and trust to create long-term partnerships with businesses. For more information, please visit www.everside.com.
Actuparo LLC is a premier strategic advisory firm focused on assisting financial sponsors and individual companies in navigating the Federal marketplace and maximizing opportunities for growth and success. The firm assists PE/VC due diligence efforts, advises a diverse set of small businesses looking to find federal revenue opportunities, and consults for large organizations who want to find and develop small business partners and Federal customers. Actuparo also connects Federal Government agencies with the most innovative and high-quality tools and solutions, working with all sides of the Acquisition system to improve effectiveness and efficiency.