Arcade Partners, LLC

PE/Buy-Out · West Hartford (United States)

PE/Buy-Out

PE/Buy-out

AI

Climate

Sign up free to access full profile and submit your pitch.

About

Arcade Partners, LLC is a private equity firm specializing in investments in middle market leveraged buyouts, industry consolidation, turnarounds, distressed situations, senior debt, subordinated debt, mezzanine, and recapitalization transactions. It also seeks to invests in privately held (including spin offs from public companies) or closely held public companies and will make non-control and growth capital investments. It invests in non-cyclical, non-capital intensive manufacturing companies operating in niche markets and service businesses with recurring revenues. The firm prefers to invest in companies in industrial manufacturing, consumer products, logistics, food and beverage, industrial distribution, paper and packaging, telecommunications, and business service sectors. It typically invests in companies based in United States or Western Europe with United States presence. The firm considers investments between $3 million and $15 million in its portfolio companies with an aggregate valuation from as low as $15 million to as high as $500 million, enterprise values between $20 million and $150 million, and with revenues between $20 million and $50 million, although it will consider companies on either side of the range. It seeks to invest in companies with a minimum EBITDA between $3 million to $25 million and cash flow margins of at least 10 percent. The firm seeks to invest in portfolios consisting of from 2 to 20 separate investments, with an aggregate valuation from as low as $3 million to as high as $100 million. The purchase terms can be flexible, including a straight purchase of the entire portfolio for cash, a purchase of a partial interest in several investments for cash, or a combination of cash and profit-sharing. The firm prefers to invest in assets such as private equity and mezzanine fund legacy assets (tail-ends and residuals from prior funds), buyout debt and equity owned by hedge funds that are faced with liquidity needs or assets that are non-core investments, bank, insurance company and other financial firms’ private debt and equity assets that are likewise no longer considered core holdings, minority and co-investment positions acquired by pension funds and other traditional LP investors, and assets of private equity funds with distressed GP or LP relationships or other situations in which the GPs have faced internal departures or the funds are otherwise under economic pressure. It will also consider operational turnarounds. The firm seeks to acquire at least 50 percent ownership stakes but will also entertain minority investments. It typically brings its own capital and of its close institutional and family office partners to close the transactions and provide necessary follow-on funds for growth. It also seeks to take a Board seat in its portfolio companies. Arcade Partners, LLC was founded in November 2003 and is based in West Hartford, Connecticut with additional offices at New, York, New York, Tenafly, New Jersey, and Cincinnati, Ohio.

Investment Criteria