January 26, 2018

Trive Capital 2017 Year in Review

Dallas, Texas

The Trive Capital team would like to wish you a Happy New Year. 2017 was an active year for Trive, as we closed four (4) new platform investments, completed fifteen (15) add-on investments to existing portfolio companies, executed dividend recapitalizations at two (2) portfolio companies, and fully exited four (4) investments. We welcomed back two former team members as Vice Presidents, Chase Gosselin and Jared Reyes, who rejoined after graduating from business school. Additionally, in September 2017, we held a first and only closing of Trive Capital Fund III (“Fund III”) with over $1 billion in capital commitments. Fund III reached its hard-cap in just three months and was substantially oversubscribed.
 
“In 2017, despite frothy market conditions, we were able to find multiple attractive investment opportunities and remained disciplined in our investment approach. We sought out attractive risk/reward opportunities across the capital structure, where our flexible investment mandate, nimbleness in special situations and hands-on operational focus was a competitive differentiator. Fund III will allow us to continue executing on our strategy for many years to come, investing in strategically viable, middle market companies through tailored, creative capital structure solutions, including both equity and debt.” said Trive Capital Managing Partner, Conner Searcy

 
Four (4) New Investments in 2017
 
Core Appalachia
Trive, in partnership with Core Minerals III, LLC, executed a carve-out of certain conventional assets of Chesapeake Energy Corporation in the Southern Appalachian region.
 
uSell
Trive recapitalized and partnered with uSell.com, Inc., a large market maker and logistics provider for used smartphones.
 
Circle 8
Trive recapitalized and partnered with Circle 8 through a multi-tranche capital solution. Circle 8 provides crane lifting and pumping services to the oil and gas, commercial and industrial markets in the southern United States.
 
Redmond & Greer
Trive partnered with Redmond & Greer Pharmacy Supply. Redmond & Greer is a wholesale pharmaceutical distributor specializing in the sale of prescription drugs to pharmacies throughout the United States.

 
Fifteen (15) New Add-On Acquisitions in 2017
 

  • Merlin Global Services acquired CSG Solutions, LLC, a provider of remote sensing and Intelligence, Surveillance and Reconnaissance (ISR) services and solutions.
  • Lucky Bucks completed nine (9) complementary acquisitions consisting of COAM (coin operated amusement machine) operators and associated portfolios.
  • Amteck completed two (2) add-on acquisitions, PGI and Consolidated Electric, adding to its presence in the South Carolina and Alabama markets.
  • Valence Surface Technologies acquired MAPSCO, a provider of metal finishing services to the Aerospace and Defense industries.
  • Architectural Surfaces Group partnered with Pental Surfaces, a leading value-added distributor of interior surfaces.
  • Core Appalachia acquired a working interest in 446 gross wells (11 net) which it operates, including associated production of 306 net mcfe/d and 2.28 Bcf of Proved Producing Reserves.

 
Four (4) Exits in 2017
 
AGM Automotive
AGM Automotive, headquartered in Troy, Michigan, is a global supplier to OEM and Tier I customers of premium interior components and systems, including interior lighting, overhead console systems, technical textiles, electronics and switches and other interior assemblies to the automotive industry.
 
Architectural Surfaces Group
Architectural Surfaces Group, headquartered outside of Austin, Texas, is a leading importer and distributor of natural stone, engineered stone and related products used in residential construction, commercial construction and remodeling throughout the United States.
 
Residential Design Services
Residential Design Services, headquartered in Anaheim, California, provides customized sales, manufacturing and installation services for a wide variety of interior surface products, including flooring, countertops, wall tile, window treatments, and other finishes for residential and commercial builders.
 
Bell Fish Company
Bell Fish Company, based in Albany, Indiana, is an operator of a self-contained, recirculating aquaculture facility.
 

Two (2) Dividend Recapitalizations in 2017
 

  • Residential Design Services completed its second dividend recapitalization in February 2017 ahead of its ultimate sale later in the year.
  • Southern Towing Company completed a dividend recapitalization in November 2017.

 
Trive Welcomes Two (2) New Vice Presidents

Jared Reyes and Chase Gosselin rejoined the Trive team as Vice Presidents after graduating from business school. Jared attended the Harvard Business School and Chase attended the University of Chicago Booth School of Business. Having initially joined Trive in 2013 as Associates, Jared and Chase were involved in transaction execution and operational improvement of Trive’s investments in the Aerospace & Defense, Government Services and Automotive industries.
 
Trive Annual Giveback Day

In June, Trive partnered with the Dallas Children’s Advocacy Center for our Annual Giveback Day. We were honored to engage with such an impactful organization and to provide a day of service, assembling bags of supplies for children and families affected by abuse in Dallas County. 


About Trive

Trive Capital is a Dallas, Texas based private equity firm with more than $7 billion of regulatory assets under management. Trive focuses on investing equity and debt in what it sees as strategically viable middle-market companies with the potential for transformational upside through operational improvement. We seek to maximize returns through a hands-on partnership that calls for identifying and implementing value creation ideas.

The Trive team is comprised of seasoned investment professionals who have been involved in over 250 middle-market transactions representing in excess of $7 billion in revenue across Trive’s targeted industry sectors and situations.

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