WORKING WITH

Independent Sponsors

WORKING WITH

Independent Sponsors

WORKING WITH

Independent Sponsors

WHAT WE OFFER

Partnership, collaboration and transparency. We do what we say we are going to do

  • Recently raised new fund with plenty of patient capital
  • Full promote structure, including competitive monitoring fees and carried interest
  • Certainty of backstop by us with flexibility to bring in other LPs on a minority basis
  • Operating support
  • Speed and certainty – We know that a “quick no” is almost as valuable as a “certain yes”.

EXPERIENCE

  • We’ve been there. We started as an Independent Sponsor with only one LP, executing three deals before raising our first distributed institutional Fund I
  • We backed an independent sponsor – Isleworth Capital – in the acquisition of Martinez Steel
  • We are senior M&A professionals with prior experience at Blackstone, Sun Capital, Gryphon Investors and Welsh Carson

We aim to respond within 48 hours

CASE STUDY

Martinez Steel

  • Headquartered in Ontario, CA, Martinez is one of the nation’s largest independent rebar subcontractors
  • Martinez offers premium fabrication and placement capabilities, specializing in major public and private infrastructure projects on the west coast
  • Services the largest and most prominent general contractors on increasingly large and complex projects

Background

  • New State gained a competitive advantage by teaming with Isleworth Capital Partners, an operationally focused independent sponsor
  • We closed the investment in November 2018, with rollover ownership and management remaining as equity partners post-close

Challenges

  • Historically, Martinez benefited from an MBE certification, winning many of its jobs due to its designation
  • An unusually rainy season in California led to project delays in 2019, creating operational and financial challenges
  • Internal management was very entrepreneurial

Our Solution

  • Structured to preserve minority-owned business designation

  • Invested equity capital INTO the business

  • Increased backlog by over $100 million

  • Added to management, including COO, CFO, Director of Operations and Controller.

  • Implemented a pricing desk, HR best practices, and active inventory management

What Our Partners Have to Say

“As independent sponsors, it is critical for us to find a capital partner who thinks collaboratively like an actual partner. New State fully delivered on all aspects of the combined relationship between co-investors and the Sellers. We would be proud to work with them anytime”

Gregory Young

Managing Partner, Isleworth Capital Partners
 

Contact

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