News

January 8, 2009

Norwest Mezzanine Partners Reviews 2008 Investment Activity

Dear Friends,
 
Demand for mezzanine financing is increasing, and 2008 brought Norwest Mezzanine Partners (NMP) much to celebrate, despite the turbulent economy. We now have more than $1 billion in capital under management after the successful close of our third investment fund in June, Norwest Mezzanine Partners III, LP, with $500 million in commitments. We closed five new transactions helping support the investment activity of leading middle market private equity sponsors, and our investment team expanded with new talent and expertise.

Many thanks to all of you who contributed to our success in 2008. We appreciate your confidence and look forward to supporting your investment activities in 2009. We also look forward to creating new sponsor relationships and demonstrating the expertise and service that has established us as one of the leading investors of junior capital.

New Platform Investments: $122.4 million
 
January
Coastal QSR Holdings: $10.9 million
A YUM! Brands franchise that owns and operates 45 Taco Bell and YUM! multibranded restaurants concentrated in the Tampa, Ft. Myers and Palm Beach, FL markets. Prometheus Partners provided sponsorship for the transaction. NMP leveraged its prior experience in the industry and with the sponsor to close the transaction efficiently.

February
UMA Enterprises: $7.0 million
A leading full-service importer and wholesaler of home décor products, headquartered in Compton, CA. Long Point Capital provided sponsorship for the transaction. NMP strengthened its longstanding relationship with Long Point and sub debt partners.
 
August
Ryt-Way Industries: $40.2 million
A leading contract packager of a variety of branded food products, headquartered in Lakeville, MN. Wind Point Partners provided sponsorship for the transaction. This transaction marks the third time that NMP has supported a Wind Point Partners investment.
 
October
Norwesco: $40.6 million
The largest manufacturer and supplier of polyethylene tanks and the fourth largest plastics rotational molder in North America. Olympus Partners provided sponsorship for the transaction. This investment by NMP marks the third time in the last 20 years that Norwesco has been a portfolio company of the Norwest family of funds.

November
Southern Waste Services: $23.7 million
A provider of environmental emergency response and remediation services for industry and government. The investment by NMP helped support the add-on acquisition of Eagle Construction and Environmental Services. ShoreView Industries provided sponsorship for the transaction. This transaction marks the first time that NMP has partnered with ShoreView on an investment.

Additional Investments: $12.5 million

NMP reinvested an additional $12.5 million in July to help support an add-on acquisition for portfolio company The Evercare Company (d/b/a The oneCARE Company), a manufacturer and distributor of household cleaning and organizational products. NMP initially invested in Evercare in 2004, and this recent additional investment illustrates NMP's continuing support of the company. Protostar Partners is the private equity sponsor.
 
NEP Team: Additional Talent, Promotions
 
A strong, committed investment team is essential for our continued success. We celebrated the promotions of Carter Balfour to Partner and Shani Graber to Principal in the spring, and we welcomed John Hogan to our team as a Partner in June. John's breadth of middle market financial sponsor relationships, industry and transaction experience, as well as an early career in the credit markets, strongly complements our team and overall strategy. Erik Barner also joined our team as an Analyst in August. Erik worked previously in investment banking at Piper Jaffray & Co.

Successful Past, Optimistic Future
 
NMP is staying true to the investment philosophy which has defined us since our inception nearly nine years ago: invest in partnership with private equity sponsors; offer flexible transaction structures through our broad investment charter; and provide successful results for shareholders. Our patience, unique flexibility, and investment discipline will undoubtedly continue to reward us as we look ahead in this New Year.