#USA #Grand Rapids #Blackford Capital #New 2ND Capital #portfolio companies

Blackford Capital Partners with New 2ND Capital

In a notable development within the private equity sector, Blackford Capital, a prominent player in the lower middle market, has announced a strategic partnership with New 2ND Capital. This collaboration aims to bolster select companies within Blackford's investment portfolio, providing them with additional financial support and growth opportunities.

Partnership Overview

The partnership between Blackford Capital and New 2ND Capital brings together two significant players in the private equity arena. Blackford Capital, established in Grand Rapids, Michigan, is renowned for its majority-control equity investments across various sectors, primarily focusing on manufacturing, distribution, and service companies, generating revenues between $20 million and $200 million.

New 2ND Capital is noted for its specialization in GP-led secondary transactions within the North American middle market, emphasizing flexible solutions for various private equity stakeholders. Through this collaboration, Blackford has secured a commitment of $130 million, targeted at supporting five key portfolio companies: Automation Control Group, Burgaflex, Habco Partnership Inc., Security Fire Systems, and Texas Injection Molding.

Implications for Growth

The infusion of additional capital into these companies is expected to catalyze continued growth and value creation. Martin Stein, the founder and managing director of Blackford Capital, expressed pride in the collective effort that led to securing institutional investments. He stated, "The commitments are a testament to our strong portfolio and investment strategies that focus on building robust businesses and generating lasting value."

Moreover, the partnership is expected to enhance Blackford's execution of its disciplined buy-and-build strategy, laying the foundation for future value creation.

Perspectives from New 2ND Capital

Clay Cole, partner at New 2ND Capital, shared his enthusiasm about the partnership, remarking on the potential of the businesses within Blackford's portfolio. He affirmed, "We are thrilled to support the Blackford team and look forward to contributing to the success story of these businesses in appealing sectors."

Jack Shay, principal at New 2ND Capital, echoed similar sentiments, highlighting the promising nature of the selected companies, which aim to navigate their next growth phases with the newly allocated resources.

Support from Equity Partners

The transaction also reflects the collaborative support of various equity partners, with FirstPoint Equity playing a key role in facilitating the arrangement. Dan Farooqi, partner at FirstPoint, remarked on the bespoke nature of the solution, showcasing Blackford's strong conviction in its manufacturing-focused portfolio.

Conclusion

The collaboration between Blackford Capital and New 2ND Capital marks a significant milestone in the firm's journey, reinforcing its commitment to nurturing undemanded potential within growing companies. As the partnership unfolds, both parties are poised to capitalize on the exciting changes this initiative will bring not only to the portfolio companies but also to the broader industrial landscape.

For more information about Blackford Capital and its investment strategy, visit blackfordcapital.com. For insights into New 2ND Capital's operations and offerings, check out new2ndcapital.com.