LNC provides its partners with flexible capital solutions and the strategic support to drive value creation for all stakeholders

Transcription

1 LNC provides its partners with flexible capital solutions and the strategic support to drive value creation for all stakeholders LNC Partners is a Northern Virginia based investment firm with over $235 million of capital under management that provides flexible financing alternatives to lower middle market companies. We are a reliable, relationship-oriented partner that works closely with management teams and business owners to tailor investment structures that allow us to address each business unique requirements. Our professionals have over 60 years of experience and have invested nearly $1.3 billion of capital across every layer of the balance sheet. This prior investment and advisory experience separates us from traditional financing sources and provides our partners with a valueadded investment approach that drives performance improvement and unlocks shareholder value. Investments of up to $25 million Focused on management and family owned businesses Tailored debt and equity financing structures Capital We provide debt and equity capital to support buyouts, acquisitions, recapitalizations and other ownership liquidity needs Leadership We work closely with management owned and family owned business and do not require institutional sponsorship Flexibility We tailor debt and equity financing structures to address the unique dynamics of each transaction Collaboration We structure a strong alignment of interests with management, and allow the executive team to retain full day-today control Stability We are patient investors that seek long-term opportunities to support the growing capital needs of outstanding companies

2 Investment Focus LNC Partners is focused on partnering with the highest quality management owned and family owned businesses in the lower middle market. We have the flexibility and capability to partner with executive teams across a wide range of industries, and target businesses which are looking to achieve shareholder liquidity or are pursuing growth strategies. Our professionals take a long-term perspective and are regarded as thoughtful, responsive deal partners. We believe that the strength of management is crucial to the success of smaller enterprises, and seek situations where the executive team has substantial ownership and a sound strategic plan. Industry Focus Business and information services Investment Parameters Investments of up to $25 million Financial and insurance services Healthcare services Niche manufacturing Debt securities Unitranche/hybrid debt facilities Subordinated debt Equity Securities Structured/preferred equity Minority equity Control/majority buyouts Transaction types Management and leveraged buyouts Debt refinancings Strategic acquisition financings Growth capital investments Minority and dividend recapitalizations

3 Investment Criteria LNC Partners is ideally positioned for situations requiring a sophisticated, responsive capital partner in the lower middle market. We thoughtfully listen to our deal counterparts and customize our investments to fit the unique needs of each situation. In addition, our investment team maintains a reputation for delivering on the timeframe required and standing by the terms we propose. Business Paramenters Defensible market position Financial Parameters Companies with at least $10 million of annual revenue Favorable industry dynamics Companies with at least $2 million of annual cash flow Attractive growth opportunities Moderate capital expenditure and working capital requirements Emphasis on recurring revenue Consistent and high returns on net assets and invested capital Diversified customer base Established and proven executive team Significant economic alignment with management and other equity investors Value Added Partnership LNC s Managing Partners have a long and successful history of making investments across every layer of the balance sheet. As a result, we offer a broad array of experience and knowledge to management teams making important financial and operating decisions. As active investors, we collaboratively work with management at the board level, as either directors or observers, to assist in the growth of each business by providing advice and counsel on corporate planning, operational improvements, management recruitment and strategic acquisitions. These value added services allow management owned and family owned businesses the opportunity to benefit from services typically provided by control oriented private equity firms, at a discounted cost of capital, while maintaining majority ownership and day-to-day control over their business. Plaza America Tower II, Plaza America Drive, Suite 160, Reston, VA P: F:

4 Our Team LNC Partners was formed by a cohesive team of senior partners from a leading middle market investment platform. The Managing Partners have worked together for over a decade and collectively have over 40 years of middle market experience. Prior to co-founding LNC Partners, Mr. Kelty was a Principal at Allied Capital Corporation, where he was involved in originating, evaluating, executing and monitoring mezzanine debt, secured debt and control investments across a broad range of industries. He served as a director or observer on the Boards of Directors of several portfolio companies, and also led a niche strategy focused on insurance services that produced several proprietary investment opportunities. Matt Kelty Managing Partner kelty@lnc-partners.com Before joining Allied Capital in 2004, Mr. Kelty spent three years at Blue Point Capital Partners focused on control equity investments in lower middle market companies. He began his career in the Fixed Income Division at Lehman Brothers. Mr. Kelty received his B.A. magna cum laude with a major in Chemistry from Williams College. Robert Monk Managing Partner monk@lnc-partners.com Robert M. Monk is a Managing Partner of LNC Partners. Prior to co-founding LNC, Mr. Monk was a Managing Director and Investment Committee member of Allied Capital Corporation, where he was involved in originating, evaluating, executing and monitoring mezzanine debt, secured debt and control investments across a broad range of industries. He has served as a director or board representative on the boards of 30 lower middle market companies. He began his career at First Union National Bank in Charlotte, NC after earning his bachelor s degree in Business Administration from the University of Georgia. Prior to co-founding LNC Partners, Mr. Raterman was a Managing Director at Ares Management LLC, where he was responsible for originating, evaluating and monitoring debt investments across a broad range of industries. He managed relationships with a multitude of financial sponsors and financial intermediaries and served as a director or observer on the Boards of Directors of his portfolio companies. Mark Raterman Managing Partner raterman@lnc-partners.com Prior to joining Ares, Mr. Raterman was a Principal at Allied Capital Corporation, where he executed numerous mezzanine debt, secured debt and control equity investments. Before joining Allied Capital in 2002, Mr. Raterman worked at Wachovia Securities, providing M&A advisory and private placement services. Prior to joining Wachovia, he began his career at Chase Securities (now JP Morgan Securities), primarily in the Leveraged Finance Group, executing syndicated loans, bridge loans, and high yield debt. Mr. Raterman graduated from the University of Virginia with a B.A. in Economics.

5 Kevin Cunningham Principal Dan Higgins Principal Kevin Cunningham is a Principal at LNC Partners. Prior to joining LNC Partners, Mr. Cunningham was a Vice President at Ares Management LLC, where he was responsible for originating, evaluating and monitoring debt and equity investments across a broad range of industries. Prior to joining Ares, Mr. Cunningham was a Vice President at Allied Capital Corporation, and before that he was an Investment Associate at BancBoston Capital. He began his career at Thomas Weisel Partners. Mr. Cunningham graduated from the University of Virginia with a B.S. in Commerce and received an M.B.A. from Columbia Business School. Dan Higgins is a Principal at LNC Partners, and is primarily responsible for originating, analyzing and executing new investments and monitoring portfolio companies. Prior to joining LNC, Mr. Higgins was a Vice President at Allied Capital and a Senior Associate in the Transaction Advisory Services Group of Ernst & Young LLP. He graduated from the University of Virginia with a B.S. in Commerce with concentrations in Finance and Accounting. Jon Felsher Associate felsher@lnc-partners.com Jeff Sprau Associate sprau@lnc-partners.com Jon Felsher is an Associate at LNC Partners, and is primarily responsible for analyzing and executing new investments and monitoring portfolio companies. Prior to joining LNC, Mr. Felsher was a Senior Associate in the Transaction Services-Financial Due Diligence group of PricewaterhouseCoopers LLP. He graduated from the University of Richmond with a B.S. in Business Administration with concentrations in Finance and Accounting. He is a Chartered Financial Analyst (CFA) and became a licensed Certified Public Accountant (CPA) in Jeff Sprau is an Associate at Leeds Novamark. Prior to joining Leeds Novamark, Mr. Sprau was a Senior Associate in the M&A Advisory Group group of PricewaterhouseCoopers LLP where he advised private equity firms and strategic buyers on operational due diligence issues. He graduated from Bentley University with a B.S. in Economics - Finance. Plaza America Tower II, Plaza America Drive, Suite 160, Reston, VA P: F:

6 Representative Investments LNC s Managing Partners have successfully partnered with founders, families, management teams and private equity groups to invest nearly $1.3 billion to support the continued growth of the businesses detailed below. Our experience investing up and down the balance sheet across a wide array of industries allows us the flexibility to provide financing structures tailored to address the unique dynamics of each transaction. Current Investments Exited Investments