Piper Jaffray Announces the Final Close of Merchant Banking Fund II, L.P.

10/10/2018 | 09:45:37 AM

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 RioCafe 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.

Follow Piper Jaffray: LinkedIn | Facebook | Twitter

© 2018 Piper Jaffray Companies. 800 Nicollet Mall, Suite 1000, Minneapolis, Minnesota 55402-7036

Source: Piper Jaffray Companies

Piper Jaffray Companies
Pamela Steensland, 612-303-8185