Castle Harlan is a private equity firm based in New York City that focuses on buyouts and growth capital investments in middle-market companies across a range of industries. Founded in 1987, Castle Harlan invests in controlling interests in middle-market companies in North America and Europe, as well as in Australia and Southeast Asia through Castle Harlan Australian Mezzanine Partners.
Castle Harlan's team of 18 investment professionals, based in New York City, has completed over 50 acquisitions since its inception with a total value of approximately $10 billion. The firm currently manages investment funds with equity commitments of approximately $3.5 billion.
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History
Castle Harlan was founded in 1987 by John K. Castle, but its history goes back to the 1960s. During the 60s Castle headed all of the private equity activities, including the Sprout Capital Group, at Donaldson Lufkin & Jenrette (DLJ). At that time DLJ used some of the first limited partnerships to bring institutional investors into private equity investing. From the period between 1979 and 1986 Castle rose to become the president and chief executive officer at DLJ.
Leonard Harlan joined DLJ in 1965 and was a friend of Castle. Harlan left DLJ in 1969 and formed a successful real estate investment group, The Harlan Company. In 1987, Castle and Harlan, with a handful of others, raised $125 million for its new limited partnership, Legend Capital Group, L.P., to invest in leveraged buyout transactions.
In 1999, Castle Harlan teamed with Bill Ferris and Joseph Skrzynski of Australian Mezzanine Investments to create Castle Harlan Australian Mezzanine Partners, also known as CHAMP. CHAMP focuses on control investments in middle-market businesses in Australia and Southeast Asia with similar criteria to Castle Harlan. CHAMP also has an affiliate, CHAMP Ventures, that invests in small buyouts, non-control growth capital and venture capital. CHAMP raised its second fund with A$950 million of investor commitments in 2005 and its third fund with A$1.5 billion in 2010.
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Investments
Investment funds
Since its inception, Castle Harlan has participated in eight private equity funds, five in the United States and three in Australia. The U.S. funds are:
- Castle Harlan Partners V (2010, approx $1.0 billion)
- Castle Harlan Partners IV (2003, $1.2 billion)
- Castle Harlan Partners III (1997, $625 million)
- Castle Harlan Partners II (1992, $275 million)
- Legend Capital Group (1987, $125 million)
These partnerships, together with the three Australian funds, have represented committed equity capital of approximately $6.0 billion.
Portfolio companies
Castle Harlan focuses on investing in control positions in private middle-market companies. The firm prefers to partner with existing managers, who know the business the best. In order for Castle Harlan to acquire a company, the business must be priced realistically in terms of growth prospects and fundamental value in the marketplace.
Current and former portfolio companies include Securus Technologies, the leading provider of secure inmate telecommunications for the corrections industry; IDQ Holdings, the largest provider in the U.S. of aftermarket automotive air conditioning repair products for the do-it-yourself market; Pretium Packaging, a leader in short-run plastic bottles; Americast Technologies, Inc., a leading North American designer and manufacturer of large, highly engineered steel and complex ferrous alloy castings, Bravo Brio Restaurant Group, which owns and operates more than 50 mid-to-upscale Italian restaurants, and United Malt Holdings.
Examples of investments made during the last decade.
Recent awards
- 2010: Castle Harlan and CHAMP recognized by The Australian Private Equity and Venture Capital Association (AVCAL) for its successful investment in United Malt Holdings.
- 2010: John K. Castle is inducted into the M&A Advisor Hall of Fame.
- 2008: John K. Castle is given the Lifetime Achievement Award by M&A Advisor.
- 2006: Castle Harlan named with CHAMP the Private Equity Firm of the Year by M&A Advisor. From October 2005 through September 2006, the period covered for the award, Castle Harlan and CHAMP executed 24 transactions, including purchases, sales, add-ons and recapitalizations, with a total value of approximately $3.6 billion.
- 2005: Castle Harlan named winner of the 2005 International/Cross-Border Deal of the Year by M&A Advisor. This was for the acquisition of Polypipe Group.
- 2003: Castle Harlan named winner of the 2003 Middle Market International Cross-Border Deal of the Year and winner of the 2003 Middle Market Media and Telecommunications Deal of the Year by M&A Advisor. This was for the acquisition of Austar United Communications, Inc.
Branford Castle, Inc
Also founded by John K. Castle, Branford Castle, Inc. invests in small to medium-sized private companies. Castle Harlan and Branford Castle focus on investments with similar characteristics, however, Branford Castle will pass on deals valued at over $75 million to Castle Harlan.
References
Additional references
External links
- Castle Harlan (company website)
- Branford Castle (affiliated company website)
Source of article : Wikipedia
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