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
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Structured to preserve minority-owned business designation
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Invested equity capital INTO the business
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Increased backlog by over $100 million
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Added to management, including COO, CFO, Director of Operations and Controller.
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Implemented a pricing desk, HR best practices, and active inventory management
What Our Partners Have to Say
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