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The $130 million growth equity fund will invest in commercial-stage
businesses with strong growth prospects and talented management teams
MINNEAPOLIS--(BUSINESS WIRE)--Oct. 10, 2018--
Piper
Jaffray Companies (NYSE: PJC), a leading investment bank and asset
management firm, is pleased to announce the final close of Piper Jaffray
Merchant Banking Fund II, L.P. (“Fund II”), a $130 million growth equity
fund. With the closing of Fund II, Piper Jaffray Merchant Banking
manages $275 million of committed and invested capital through Fund II
and its two prior growth equity funds.
Fund II will invest in commercial-stage businesses with strong growth
prospects within industry
sectors covered by Piper Jaffray equity research and investment
banking. Fund II plans to make senior equity and equity-linked
investments of up to $15 million per company. Focus sectors include
healthcare, technology, business services, financial technology and
consumer. Given Fund II’s late-stage growth equity focus, portfolio
companies will typically have a defined path to liquidity in a three- to
five-year timeframe.
“Our investment strategy has been consistent since we launched our
merchant banking business in 2008. Fund II will leverage Piper Jaffray’s
personnel, expertise and relationships to find exceptional growth
company investments, accelerate the path to success for each company and
help guide each company to a successful exit,” said Tom
Schnettler, managing director of Piper Jaffray Merchant Banking. “We
are very pleased to close Fund II and thank all of our limited partners
– both returning and new – for their support and confidence.”
Fund II attracted strong support from existing limited partners and
added a number of institutional investors and family offices as new
limited partners.
Since Fund II’s initial close in late 2017, the fund has made three
investments in the following companies:
-
Cafe
Rio – Cafe Rio is an emerging leader in the Mexican
fast-casual restaurant industry, building its brand with fresh, 100%
made-from-scratch foods. Cafe Rio has attractive unit-level economics,
operating more than 100 units, primarily in the western half of the
U.S.
-
HemaSource
– HemaSource combines proprietary inventory management software and
data analytics with high-quality medical products and strong customer
service to create the leading medical disposables distribution
business in the plasma collection market and other ambulatory
healthcare markets.
-
Foodsby
– Foodsby operates an online meal ordering and bulk delivery logistics
platform. The company’s online platform enables primarily suburban
office workers to order lunch from local restaurants that is delivered
by the restaurant. Foodsby’s proprietary algorithms optimize supply
and demand, and its delivery rules maximize delivery efficiencies,
restaurant profitability and consumer satisfaction.
Fund II will be managed by the Piper
Jaffray Merchant Banking team, which includes its three managing
directors – Ted Christianson, Bob Rinek and Tom Schnettler. The Merchant
Banking team has made 25 investments to-date and has generated 13
liquidity events, including the sale
of Sport Ngin to Comcast NBC Sports, the sale
of Torax Medical to Johnson & Johnson and the sale
of LogRhythm to private equity firm Thoma Bravo.
For additional information regarding Piper Jaffray Merchant Banking,
including its portfolio companies, please visit piperjaffray.com/merchantbanking.
Piper Jaffray Merchant Banking (PJMB) is a part of the asset management
business of Piper Jaffray Companies (NYSE: PJC) and operates as the
private equity arm of the firm. PJC Capital Partners LLC is the
registered investment adviser to PJMB.
Piper
Jaffray Companies is a leading investment bank and asset management
firm. Securities brokerage and investment banking services are offered
in the U.S. through Piper Jaffray & Co., member SIPC and FINRA; in
Europe through Piper Jaffray Ltd., authorized and regulated by the U.K.
Financial Conduct Authority; and in Hong Kong through Piper Jaffray Hong
Kong Limited, authorized and regulated by the Securities and Futures
Commission. Asset management products and services are offered through
five separate investment advisory affiliates―U.S. Securities and
Exchange Commission (SEC) registered Advisory Research, Inc., Piper
Jaffray Investment Management LLC, PJC Capital Partners LLC and Piper
Jaffray & Co., and Guernsey-based Parallel General Partners Limited,
authorized and regulated by the Guernsey Financial Services Commission.
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© 2018 Piper Jaffray Companies. 800 Nicollet Mall, Suite 1000,
Minneapolis, Minnesota 55402-7036
View source version on businesswire.com: https://www.businesswire.com/news/home/20181010005128/en/
Source: Piper Jaffray Companies
Piper Jaffray Companies
Pamela Steensland, 612-303-8185
pamela.k.steensland@pjc.com
