NAIC Appoints Two New Board Members at its October Meeting

The NAIC appointed Melody Rollins and Juan Sabater to its board of directors. Melody Rollins is a Partner and Head of Client Service and Business Development at Brightwood Capital Advisors, LLC where she oversees all of Brightwood's existing and prospective client and consultant relationships and leads the development, marketing and distribution of the firm's products. Juan Sabater is a Partner with Valor Equity Partners. He serves on Valor's Investment Committee and is a member of the board of directors of Renovate America, a Valor portfolio company. The new appointments round out the NAIC's 15-member board.

NAIC Capital Allocators Road Show Heads to Sacramento

The NAIC Capital Allocators Road Show will make its next stop in Sacramento, California on Dec. 7, 2016. Members will have the opportunity to meet with local limited partners and government officials to discuss manager performance, investment strategies and relevant emerging manager programs. Participants will have the opportunity to gain valuable one-on-one time with capital allocators from California State Teachers' Retirement System (CalSTRS) and California Public Employees' Retirement System (CalPERS). Space is limited. Please contact Dawn Simmons at [email protected] to attend.

NAIC Inducts Inaugural Home Run Club Members

During the Annual Private Equity & Hedge Fund Conference, the NAIC announced the inaugural members of its Home Run Club. The NAIC Home Run Club recognizes significant deals completed by NAIC member firms that have returned at least 4X to their limited partners. This will be an ongoing tribute to those diverse managers who have generated superior returns. The initial inductees are:

• Clearlake Capital Ground: Ashley Stewart (5X)
• ICV Partners: Mallet & Co. (5.25X) and Stauber Performance Ingredients (4.0X)
• Palladium Partners: ABRA Auto Body & Glass (6.7X)
• One Rock Capital Partners: Dixie Electric (4.7X)
• Valor Equity Partners: Solar City (5.5X)

Compliance Corner: Operational Due Diligence (Part 3)

Operational Due Diligence (ODD) has grown in importance significantly for institutional investors looking to invest in funds. ODD is a comprehensive review of everything about your business other than how investment decisions are generated and executed. The purpose of the ODD is to make sure the firm is operationally well-managed. Investors now rely heavily on ODD as well as IDD when making final investment decisions. A 2014 Deutsche Bank study of 70 institutional investors revealed that 65% of their ODD teams have explicit veto authority in the investment decision-making process, which was exercised in almost 7% of manager reviews; and 63% of investors won’t reconsider investing in a fund previously vetoed by the ODD team. Emerging managers make up the majority of the 7% of managers being vetoed.

NAIC Members in the News

Vicente Capital Partners Completes Sale of Leading Headset Provider

Vicente Capital Partners announced the sale of VXi Corporation (VXi) to GN Audio. VXi Corporation is a leading headset provider of best-in-class, noise cancelling headsets designed for call centers and offices, as well as professionals on the go. Vicente Capital acquired VXi in 2012 and the transaction generated a purchase price multiple approaching 9x. Following VCP’s investment, VXi was able to expand its product line, distributors and double its number of retail stores, leading to improved operational and financial performance. VXi products are available at Best Buy, Verizon and U.S Cellular, among other retailers.

Clearlake Capital Leads Recapitalization of Light Tower Rentals

Clearlake Capital Group, L.P. and Light Tower Rentals, Inc. announced that certain affiliates of Clearlake have led the recapitalization of LTR in partnership with the Company’s management team and other existing stakeholders. Founded in 1994 and headquartered in Odessa, Texas, LTR is a diversified specialty equipment rental company focused on oil and gas operations in the prolific Permian Basin, with yards in other leading U.S. basins including the SCOOP/STACK, Eagle Ford, Bakken and Marcellus. LTR emerged from Chapter 11 bankruptcy protection as part of a process whereby Clearlake led an ad-hoc bondholder committee resulting in a fully consensual pre-packaged bankruptcy plan that was completed in less than 40 days from filing and resulted in a 90% reduction of LTR’s debt. LTR was able to complete the restructuring with no disruption to its employees, customers, suppliers or operations.

GenNx360 Capital Portfolio Company Acquires Travis Body & Trailer

GenNx360 Capital Partners announced that its portfolio company, Truck Bodies & Equipment International Inc., acquired Travis Body & Trailer Inc. Travis, based in Houston, Texas, is a manufacturer of aluminum end dumps, bottom dumps and transfer trailers to the construction, waste and recycling, rendering and agriculture end markets. It operates with five major brands with 500+ distributors and dealers, across North America. Terms of the transaction were not disclosed.

New Mainstream Capital Portfolio Company Acquires Falcon Consulting, LLC

Avaap, the largest Infor systems integrator, and portfolio company of New Mainstream Capital, announced it has acquired Falcon Consulting, LLC, a KLAS-leading Epic Systems implementation and optimization firm. With the acquisition, Avaap has put itself in the position of servicing the largest enterprise software needs for its healthcare customers. Avaap is strategically focused on Infor and helping healthcare organizations implement and maximize value in Enterprise Resource Planning (ERP) investments. Falcon offers consulting and evaluation related to Electronic Health Record (EHR) systems, including revenue cycle optimization and clinical transformation, with offerings that netted the firm a top-rated 94.5 score in a 2016 KLAS research report.

One Rock Capital Partners to Acquire North Pacific Paper Co.

One Rock Capital Partners, LLC announced that one of its affiliates has signed a definitive agreement to acquire North Pacific Paper Co. Located in Longview, Washington, NORPAC is a leading manufacturer of newsprint and various publication paper products. The company, which was established as a joint venture between Weyerhaeuser Company and Nippon Paper Industries, supplies products to customers throughout North America and internationally. Financial terms were not disclosed, and the transaction is expected to close during the fourth quarter of 2016.

Palladium Equity Partners Announces Significant Investment in Del Real Foods

Palladium Equity Partners, LLC announced that one of its affiliated private equity funds has made a significant investment in partnership with the founding family of Del Real Foods, a leading Hispanic refrigerated foods company. Founded in 2002, Del Real manufactures a variety of heat-and-serve Hispanic food products, including value-added proteins such as Carnitas and Barbacoa, rice and bean dishes, and staples such as tamales and salsas. The company produces its products using natural ingredients without preservatives, and in small batches that mimic traditional cooking methods. Del Real’s freshly-packed products can be found in the refrigerated foods’ section, delivering authentic flavor and quality in a convenient heat-and-serve format to the customer.