Irving Place Capital

Investments

Since inception, Irving Place Capital and its predecessor, Bear Stearns Merchant Banking has made a number of investments in notable companies in the retail, consumer products, healthcare, energy, financial and business services, packaging and industrial sectors. Among the firm's most notable investments are the following (separated by the private equity fund from which the investment was made:

• Fund I - Aéropostale, Integrated Circuit Systems (), NRT Incorporated, Safety 1st (), Standard Hotel
• Fund II - CamelBak Group, Multi-Packaging Solutions, New York & Company, Reddy Ice, Seven for All Mankind (jeans), Stuart Weitzman and Vitamin Shoppe.
• Fund III - Aearo Technologies, Cabi, Caribbean Financial Group, Chesapeake Packaging Chromalox, Ironshore, Mold-Rite Plastics, Pet Supplies Plus, PlayCore, Rag & Bone, Universal Hospital Services, and Victor Technologies.
• Fund III SPV - Dynojet Research, and Ohio Transmission Corporation.

History

Founding and growth (1997 - 2008)

In 1997, John D. Howard was hired by Bear Stearns to launch a new private equity and merchant banking effort for the investment bank. Prior to joining Bear Stearns, Howard had been senior vice president of Wesray Capital Corporation and later co-founded Vestar Capital Partners in 1988. In 1998, Bear Stearns Merchant Banking raised its first fund with $200 million of investor commitments.

In 2001, Bear Stearns Merchant Banking completed fundraising for its second fund with $1.5 billion of investor commitments including a $500 million commitment from Bear Stearns.

In 2006, Bear Stearns Merchant Banking raised its third fund with $2.7 billion of investor commitments.

Spin-out and expansion (2008-2015)

Through the intervention of the Federal Reserve and other US Government agencies, Bear Stearns agreed to a sale of the company to JPMorgan Chase on March 24, 2008, which was completed on May 30, 2008. Following the closing of this transaction, Bear Stearns Merchant Banking became a part of JPMorgan Chase.

On November 1, 2008, Bear Stearns Merchant Banking completed a spin out from JPMorgan Chase to become Irving Place Capital. As an independent firm, Irving Place Capital began focusing on its core strengths in industrial, packaging, consumer, and retail businesses, completing seven additional investments in those verticals for its third fund, and also making several exits. In 2014, with several of the third fund's investments needing extra time, Irving Place Capital sought a mechanism to provide liquidity to those limited partners in its third fund desiring it, while also providing those limited partners interested in participating in future value to do so. As a result, in July 2015, Irving Place Capital closed on a new vehicle, Irving Place Capital Partners III SPV, LP, with $1.5 billion in capital commitments. During the same period, Phil Carpenter joined John Howard in managing the firm as Co-Managing Partners.

Recent developments (2015-present)

Since the closing of the new fund, Irving Place Capital has purchased three additional portfolio companies - Ohio Transmission Corporation, a technical distributor of industrial products and provider of related services, Dynojet Research, a manufacturer of aftermarket performance-enhancing parts and accessories as well as diagnostic equipment for powersports vehicles, and Coker Tire, a manufacturer of vintage-style tires for collector automobiles. In addition, it has made several add-on acquisitions to its portfolio companies, including add-on acquisitions for Alpha Packaging, Ohio Transmission, Pet Supplies Plus, and Universal Hospital Services.

The firm has also exited several portfolio companies during this period. In March 2017, the firm sold its investment in Cabi Holdings, a direct seller of women's apparel in the United States, Canada and the United Kingdom, to Sentinel Capital Partners. In March 2017, it announced its sale of National Surgical Hospitals to Surgery Partners, a transaction which closed in August of that year. In May 2017, it agreed to sell Chromalox, a thermal technology company, to Spirax-Sarco Engineering plc, a transaction which closed in July of that year.

In 2019, Irving Place Capital co-managing partner Philip M. Carpenter III led a spin-out from the firm to establish Radial Equity Partners, now independently focused on middle-market industrial investments.

In September 2021, Irving Place Capital signed a definitive agreement to sell Alpha Packaging to Pretium Packaging, backed by Clearlake Capital Group.

References

References

1. Howitt, David M.. (2014). "Heed Your Call". Simon and Schuster.
2. "Our Team - Irving Place Capital".
3. (2010). "Directory of Venture Capital & Private Equity". BoogarLists.
4. [https://web.archive.org/web/20050713073316/http://www.businessweek.com/bwdaily/dnflash/jun2005/nf20050629_6564_db035.htm Bear Stearns Tries on Shoes]. Business Week, June 29, 2005
5. [https://query.nytimes.com/gst/fullpage.html?res=950DEFDE1E38F931A35751C1A9649C8B63 Bear, Stearns Unit Is Said To Buy Vitamin Shoppe]. ''[[New York Times]]'', December 2, 2002.
6. link. (2016-03-04 . May 05, 2009)
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8. [http://www.allbusiness.com/services/business-services/4346984-1.html Universal Hospital Services, Inc. Completes Acquisition by Bear Stearns Merchant Banking]. Business Wire, June 4, 2007
9. [https://dealbook.nytimes.com/2010/10/06/irving-place-to-buy-thermadyne-for-200-million/ Irving Place to Buy Thermadyne for $200 Million]. New York Times, October 6, 2010
10. [http://nreionline.com/news/real_estate_bear_stearns_closes/ Bear Stearns closes $1.5 billion investment fund] {{webarchive. link. (2011-07-14 . National Real Estate Investor, May 2, 2001)
11. [https://query.nytimes.com/gst/fullpage.html?res=9B07E7DD1530F934A35752C0A9619C8B63 '08 Candidacy Could Shake Up Giuliani's Firm]. New York Times, January 7, 2007
12. [http://www.altassets.com/news/arc/2006/nz9182.php BSMB closes latest fund on $2.7bn] {{webarchive. link. (2006-10-16 . AltAssets, August 3, 2006)
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14. [http://www.pehub.com/38993/new-life-new-fund-for-constellation-ventures/ New Life, New Fund for Constellation Ventures]. PE Hub, May 5, 2009
15. link. (2011-07-15 . Private Equity Professional Digest, October 29, 2008)
16. [http://www.peimedia.com/Article.aspx?article=31636&hashID=3052F49C040841D0210CA22FBFF7C1449702B776 Bear Stearns Merchant Banking rebrands] . Private Equity Online, October 28, 2008
17. (2015-06-17). "Irving Place to let Fund III LPs sell at full value or roll into new fund - PE Hub". PE Hub.
18. (2 October 2015). "Press Release, Irving Place Capital Completes Acquisition Ohio Transmission".
19. "American Capital Announces the Sale of Dynojet".
20. "Franchise Group acquires Pet Supplies Plus for $700M".
21. "Sentinel Capital Acquires Cabi".
22. "Surgery Partners to Acquire National Surgical Healthcare from Irving Place Capital".
23. "Irving Place Capital Agrees to sale of Chromalox".
24. Falconer, Kirk. (2020-06-03). "Irving Place Capital-spinout Radial Equity launches inaugural fund".
25. (September 16, 2021). "Clearlake Capital-Backed Pretium Packaging to Acquire Alpha Packaging".
26. (2021-09-21). "Pretium Packaging Acquires Alpha Packaging".