Chevy Chase, MD – Farragut Capital Partners, a Chevy Chase-based mezzanine investment firm offering customized financing solutions to lower middle market private companies, is pleased to announce the closing of an investment in AVL Digital Group (“AVL” or “the Company”). AVL (www.cdbaby.com) represents the firm’s fifth investment out of the team’s third fund, Farragut Mezzanine Partners III, LP.
Based in Pennsaucken, NJ, AVL is a provider of value-added creative, production, marketing, distribution, website hosting, digital aggregation, and artist revenue management products and services used by independent artists and authors. The Company operates under a multi-brand strategy that includes CD Baby, which caters to independent music artists; HostBaby, which provides webhosting for artists and authors; BookBaby, which targets the self-publishing eBook industry; and Disc Makers and Oasis, which offer physical music products. The investment was made to facilitate a leveraged buyout by Stephens Capital Partners, a division of Stephens, Inc.. Farragut partnered with Triangle Capital Corporation and Salem Investment Partners on the transaction.
About Farragut Capital Partners
Founded in 2011, Farragut Capital Partners, LLC is a private investment management firm providing mezzanine debt and equity capital to finance leveraged and management buy-outs, generational transfers, growth capital financings, and recapitalizations. The firm is actively investing out of its latest investment vehicle, Farragut Mezzanine Partners III, LP. Farragut seeks to invest up to $10 million in established small and middle market companies with proven business models and stable cash flows. The firm targets companies with strong, committed management teams and the potential for significant growth in equity value.
Farragut specializes in asset-light businesses with unique and defensible market positions, stable business models, and reasonable capital expenditure and working capital needs. The firm works with owners (family businesses, equity sponsors, and fundless sponsors), senior lenders, and directly with management teams to create and build value in its portfolio companies over time.