Piper Jaffray Announces the Final Close of Merchant Banking Fund II, L.P.
October 10 2018 - 10:45AM
Business Wire
The $130 million growth equity fund will
invest in commercial-stage businesses with strong growth prospects
and talented management teams
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
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Piper Jaffray CompaniesPamela Steensland,
612-303-8185pamela.k.steensland@pjc.com
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