Farragut Capital Partners Invests in Vedicsoft Solutions

Chevy Chase, Md. – Farragut Capital Partners, LLC (“Farragut”) is pleased to announce the closing of an investment in Vedicsoft Solutions, LLC. (“Vedicsoft” or “the Company”).  Founded in 1999 and based in Iselin, N.J., Vedicsoft provides professional IT staffing services and business intelligence and data warehousing solutions to customers in the insurance, life sciences, finance, manufacturing, retail, telecom, government, and entertainment industries. Vedicsoft has over 400 employees across the United States and India.

Farragut invested $5.5 million of subordinated debt to support a management-led buyout of the Company’s founders.  The buyout was led by Vedicsoft President & CEO Nick Sharma and backed by Sowell & Co., a privately held investment firm based in Dallas.  Texas Capital Bank provided senior financing in support of the transaction. “This was a strategic move to unleash enormous growth potential for our company,” said Mr. Sharma. “This autonomy will allow us to continue to innovate and further expand our one-of-a-kind network and business analytics expertise to better serve our world-class clients.”

“We’re pleased to partner with Nick and Sowell & Co. on this transaction,” said Alan Cuthbertson, Principal at Farragut.  “Vedicsoft is a leader in the fast-growing business intelligence sector of the IT industry, and with Nick’s leadership and Sowell’s support, we think there are some exciting things ahead for the Company.”  

“We chose Farragut based on the experience and support they provide beyond investment capital.  They were great to work with and an excellent partner to help continue growing VedicSoft," said Will Schramme, Managing Director at Sowell & Co.  

Vedicsoft (http://www.vedicsoft.com/) is the twelfth investment of the team’s third fund, Farragut Mezzanine Partners III, LP.

Farragut Capital Partners Invests in T&B Equipment Co.

Chevy Chase, Md. – Farragut Capital Partners, LLC (“Farragut”) is pleased to announce the closing of an investment in T&B Equipment Co., Inc. (“T&B” or “the Company”).  Founded in 1977 and based in Ashland, Va., T&B is a provider of temporary seating and structures with a strategic focus on professional golf tournaments.  The Company has longstanding relationships with individual event hosts and organizers to supply hospitality suites, general seating, and other structural equipment to the PGA Tour and the Champions Tour, as well as camera towers to NBC and Golf Channel.  The Company also provides equipment for other professional, country club, collegiate, and high school sporting events.  T&B is a second-generation business with additional facilities in Phoenix, Ariz. and Orlando, Fla.

Farragut invested an undisclosed amount of subordinated debt to refinance existing debt and to fund growth initiatives at the Company, which recently expanded the scope of its business with Golf Channel.  “As the leading supplier of structures to the PGA Tour, T&B has earned a strong reputation for quality service and execution in the industry,” said Javier Aguirre, Partner of Farragut.  “We look forward to supporting their continued growth in the years to come.” 

About Farragut Capital Partners

Founded in 2011, Farragut Capital Partners is a private investment management firm providing mezzanine debt and equity capital to finance leveraged buyouts, generational transfers, growth capital financings, and recapitalizations. Its latest investment vehicle, Farragut Mezzanine Partners III, LP, held its final close in July 2013.  Farragut seeks to invest up to $10 million in established middle-market companies with proven business models and consistent 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 private equity groups, independent sponsors, senior lenders, and directly with owners and management teams to create and build value in its portfolio companies over time. 

Farragut Capital Partners Invests in Arandell Corp.

Chevy Chase, Md. – Farragut Capital Partners, LLC (“Farragut”) is pleased to announce the closing of an investment in Arandell Corp. (“Arandell” or “the Company”).  Founded in 1922 and based in Menomonee Falls, Wis., Arandell is a commercial printing company specializing in high-quality catalogs and multichannel marketing solutions.  The Company has been family owned since 1949.

Farragut invested subordinated debt to support growth initiatives at the Company.  Other investors included Spell Capital, The Private Bank, and CapX Partners.

“We are pleased with our new capital structure,” said Brad Hoffman, Arandell’s President and Chief Financial Officer.  In addition to substantially reducing interest expense, it will also provide us financial flexibility for the future and allows us to reinvest back into the Company.” 

“We’re pleased to partner with Arandell and the investor group on this transaction,” said Phil McNeill, Managing Partner of Farragut.  “The Company is a leader in high-end catalog printing, providing a key element of upscale retailers’ marketing strategies.”

Farragut Capital Partners Invests in reQuire, LLC

hevy Chase, Md. – Farragut Capital Partners, LLC (“Farragut”) is pleased to announce the closing of an investment in reQuire, LLC. (“reQuire” or “the Company”).  Founded in 2002 and based in Virginia Beach, Va., reQuire is an online lien release tracking and reporting service used in the real estate settlement process.  The Company provides settlement companies and real estate attorneys with an automated means of tracking and releasing property liens after settlement, ensuring any previous liens are fully repaid and properly removed from court records.  Terms of the deal were not announced.

Farragut invested subordinated debt and equity to support the acquisition of the Company by L2 Capital Partners (“L2”) of Radnor, Pa.  Founded by Bob Levine, L2 Capital Partners is a private equity family office focused on making investments in privately owned lower middle market manufacturing, consumer product, service and distribution companies with revenues of $10 million to $75 million.

“We’re pleased to partner with reQuire CEO Daniel Morris and L2 on this transaction,” said Javier Aguirre, Partner of Farragut.  “reQuire simplifies the lien tracking process in hundreds of thousands of transactions every year, and we’re excited to work with L2 as they help to introduce this compelling service to a wider audience.”

“reQuire’s patent-pending process provides a unique opportunity to redefine lien release compliance in all residential real estate transactions,” said Mr. Levine of L2.  “Unreleased liens create headaches for all parties involved, and the number of liens that remain unreleased a year after a residential closing is astounding.  We are looking forward to supporting organic and external growth through further penetrating the U.S. market and leveraging the Company’s defensible market position with additional products and services.”

reQuire (http://www.titletracking.com/) is the eighth investment out of the Farragut team’s third fund, Farragut Mezzanine Partners III, LP.

Farragut Capital Partners Announces Investment in Source Technologies, Inc.

Chevy Chase, Md. – Farragut Capital Partners, LLC (“Farragut”) is pleased to announce the closing of an investment in Source Technologies, Inc. (“Source” or “the Company”).  Founded in 1986 and based in Charlotte, N.C., Source is the leading provider of specialized magnetic ink character recognition (“MICR”) printers to the financial services industry.  In partnership with Lexmark, the Company offers a complete secure check-printing solution used in over 17,000 bank branches nationwide.  Source is a portfolio company of StoneCalibre, LLC (“StoneCalibre”), a California-based private investment firm specializing in the acquisition of lower middle-market companies.  Founded by Brian Wall, previously a long-term Partner at Platinum Equity, StoneCalibre is focused on making investments in both special situations and quality long-term capital investment opportunities. 

Farragut invested subordinated debt to refinance an acquisition facility and provide the Company with additional working capital.  “We at StoneCalibre were very pleased to have partnered with Farragut on the refinancing of Source Technologies.  Farragut offered a comprehensive and flexible recapitalization for Source Technologies and delivered on their promises with an appropriate and manageable capital structure at closing,” said Jim McCloskey of StoneCalibre.  “Source Technologies is the dominant player in the MICR printing space, and we are excited to partner with StoneCalibre on this investment,” added Phil McNeill, Managing Partner of Farragut.  “The Company is committed to offering the best check printing solution on the market, and with StoneCalibre’s guidance we’re confident they’ll continue to deliver on that vision.”  Source (http://www.sourcetech.com/) is the seventh investment of the team’s third fund, Farragut Mezzanine Partners III, LP.

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 buyouts, generational transfers, growth capital financings, and recapitalizations. Its latest investment vehicle, Farragut Mezzanine Partners III, LP, held its final close in July 2013.  Farragut seeks to invest up to $10 million in established middle-market companies with proven business models and consistent 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 private equity groups, independent sponsors, senior lenders, and directly with owners and management teams to create and build value in its portfolio companies over time.

Farragut Capital Partners Announces Addition of New Member to Investment Team; Final Close of Fund III

Chevy Chase, Md. - Farragut Capital Partners, LLC ("Farragut"), a mezzanine investment firm offering customized financing solutions to lower-middle market private companies, is pleased to announce the addition of Alan Cuthbertson as a Principal.  Alan was previously with MCG Capital Corporation and he brings nearly ten years of experience in private debt and equity investing in the lower middle market.  His private market experience includes investments in business services, information services, healthcare, distribution, and light manufacturing companies.  Prior to MCG, Alan was with The Advisory Board Company, a healthcare-focused research and consulting firm. Earlier in his career, he held investment banking roles with Legg Mason and NationsBanc Montgomery Securities.  Alan has a B.A. in Economics from Washington & Lee University.

Farragut is also pleased to announce the final closing of its third fund, Farragut Mezzanine Partners III, L.P. ("the Fund").  Led by industry veterans Phil McNeill, Javier Aguirre, and Cabell Williams, the Fund closed with approximately $100 million of total capital.  To date, the Fund has made six investments, supporting leveraged buyouts, recapitalizations, debt refinancings, and growth initiatives.  The Fund has deployed approximately 20% of available capital and is actively seeking investment opportunities.

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 buyouts, generational transfers, growth capital financings, and recapitalizations. Its latest investment vehicle, Farragut Mezzanine Partners III, LP, held its final close in July 2013.  Farragut seeks to invest up to $10 million in established middle-market companies with proven business models and consistent 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 private equity groups, independent sponsors, senior lenders, and directly with owners and management teams to create and build value in its portfolio companies over time.