Private equity investment firm Harvest Partners has formed Harvest Partners SCF (HP SCF), a private investment advisor that provides structured equity and junior debt solutions to business owners.
HP SCF intends to target investments with private equity-like returns while assuming the risks more characteristic of debt investments. HP SCF will endeavour to achieve protection of principal by:
• Investing in high quality companies that meet HP SCF’s specific investment criteria
• Structuring investments to be senior in liquidation preference to a significant amount of underlying enterprise value
• Obtaining rights, controls and protective covenants that HP SCF believes will further enhance the safety of the principal invested
For business owners and entrepreneurs who need equity capital, HP SCF can provide flexible equity solutions and all of the resources and expertise of a private equity firm. Unlike traditional private equity, HP SCF allows entrepreneurs to retain control of their business.
Simultaneous with the formation of HP SCF, Jay Hegenbart was named to Senior Managing Director, Portfolio Manager – HP SCF. Previously, Hegenbart was a Managing Director at Harvest. In addition, HP SCF hired Steve Duke as a Principal. Prior to joining HP SCF, Duke was a Principal with CCMP Capital, where he completed private equity transactions in the healthcare, consumer/retail and energy industries.
Michael DeFlorio, a Senior Managing Director of Harvest Partners, says: “We are very excited to launch HP SCF. This vehicle leverages Harvest’s 33+ year history of making successful investments in partnership with world class management teams. HP SCF is our first expansion outside of traditional control oriented investments, and it is a natural extension of our core capabilities.”
Hegenbart says: “The vision for HP SCF was built on serving the demands of entrepreneurs and business owners who need equity capital, but believe in the upside of their business and do not wish to dilute or sell their ownership.”
“We believe that the market for the kind of flexible equity capital solutions that HP SCF can provide is underserved, creating attractive risk/return characteristics. HP SCF is uniquely qualified to partner with management teams given the traditional private equity resources that we bring to the table as well as our customised approach,” says Duke.
