Discover how FINTRX empowers its customers to map, access and sell into the complex and fragmented world of Family Offices and Registered Investment Advisors.
NEWS AND INSIGHTS FROM FINTRX
As the leading family office database provider, we continue to see private wealth vehicles accumulate the assets and skills required to allocate capital directly into the alternative wealth space. By harnessing the FINTRX family office data and research platform, which provides intel into thousands of direct deal transactions made by 3,030+ family offices worldwide, we explore five family offices investing in debt. Debt investment refers to an investor (or family office) lending money to a firm, expecting them to pay back the investment with interest.
Founded in 2005, Tecum Capital Family Office is a Pittsburgh, PA-based single-family office managing the capital of an undisclosed Western Pennsylvania family. Tecum's capital originates from a Pittsburgh-area entrepreneur who built and successfully grew his industrial business over 40 years. This individual now employs over 1,000 people and has grown his business to become one of the largest privately held companies in Western Pennsylvania. The firm invests in both public and private equity across a range of sectors, regions, and asset classes. Tecum is a multi-strategy investor with three funds: Tecum Capital Partners I, Tecum Capital Partners II, and Tecum Equity, all of which focus on investing this private capital in lower middle-market companies based in the U.S.
Tecum Capital Partners II is a $225M SBIC fund focusing on making mezzanine debt and minority equity investments. The firm has completed over 40 mezzanine debt and minority equity transactions. The firm looks to place between $3M and $15M in subordinated debt and/or equity to help mature or emerging companies who are seeking financial capital for Management and Partnership Buyouts; Corporate Divestiture; Growth Capital; Acquisition Financing; and Leveraged Buyouts. Tecum Equity brings capital that was formed to build a portfolio of lower middle-market businesses, primarily in the industrial, manufacturing, and distribution sectors. Tecum Capital Partners geographically prefers to invest east of the Mississippi River, with a particular focus in the Midwest, Southeast, and Mid-Atlantic regions.
Tecum will seek business owners who value seeing their own legacy survive well after they exit their business and seek to function as a value-added resource to the incumbent management teams of their portfolio companies. With a long-term investment approach and no liquidity requirements, the firm can solve problems without the restrictions a limited-term fund brings. Tecum typically invests between $5M–$20M in businesses that have a committed management team willing to reinvest and bring identifiable growth opportunities, operational improvements, and a platform for future acquisitions. Tecum primarily focuses on niche manufacturing, value-added distribution, and general industrials; however, they will also consider those in business services, transportation, and food and beverage.
Established in 2010, HB Capital is a Laren, Netherlands-based single-family office serving as the investment vehicle for the Blokker family. The Blokker family is the owner of Blokker Holding, which owns multiple retail chain stores, including Xenos, Intertoys, Marskramer, and Maxi Toys, among others. The group invests globally across a wide range of asset classes, both indirectly and directly.
HB Capital takes a primary interest in real estate, public equity, private equity, fund of funds, hedge funds, and fixed-interest securities. They will make both equity and debt investments in public and private companies. Regarding real estate, HB Capital has both direct and indirect property investments. Their direct investment real estate portfolio comprises retail property and distribution centers in the Netherlands. The group will also invest in office buildings and housing properties.
For direct private equity investments, HB typically seeks buyout and growth capital transactions in the middle market. HB Capital usually invests a minimum of €10M in companies with enterprise values ranging from $50M to $250M. Geographically, HB Capital invests throughout Europe, the United States, and Asia. The firm comprises a team of about 34 investment professionals.
Founded in 2013, Black Cliffs Partners is a Salt Lake City, UT-based single-family office serving as the direct investment vehicle for the Lunt Family. The firm's founders, Michael and Marshal Lunt, created their wealth through extensive careers in finance, investment management, and consulting. The group invests in a wide range of opportunities throughout the private equity landscape. Black Cliffs typically make control and minority investments across several industries. When selecting portfolio companies, the firm targets profitable businesses.
Regarding the type of investments, Black Cliffs Partners have historically been flexible in investing in both debt and equity. Sectors and industries of interest include industrials, chemicals, education, healthcare, technology, SaaS, food and beverage, pharmaceuticals, oil and gas, logistics, financial technology, blockchain, and artificial intelligence, among others. While the group invests opportunistically, they have historically targeted mid-market companies with revenue between $10M and $100M. Geographically, Black Cliffs consider investments globally but have shown a propensity toward domestic investments. The firm regularly co-invests alongside like-minded individuals, family offices, and institutional investors. Past co-investment partners have included Florida-based family office and private equity investor, Liebman Group. The firm leverages both qualitative and quantitative methods of analysis.
Founded in 2002, Quantum Ventures is an Auburn Hills, MI-based single-family office managing the capital of entrepreneur and philanthropist Robert Skandalaris. Skandalaris made a majority of his wealth as a private investor. Quantum Ventures invests in both public and private equity across a range of sectors, regions, and asset classes, with a focus on private equity investments in middle-market companies. Quantum has built a network of business leaders and advisors through the years, giving the firm greater flexibility and access to opportunities.
Quantum has experience investing across asset classes including real estate, public equities, debt, and private companies, as well as a proven track record of investing in, operating, and growing companies across all sectors. The firm will conduct buyouts and recapitalizations, as well as provide expansion capital and capital for other unique situations. Quantum has a diverse investment outlook with a particular interest in manufacturing and distribution; equipment rental; financial services; sports equipment; media; and software. Geographically, the group generally prefers to invest in companies in North America, although they will make global investments on an opportunistic basis.
Quantum will typically write checks ranging from $2M to $15M, targeting companies with revenue between $1M to $1B. The firm prefers to invest in companies with enterprise value from $2M to $50M. Quantum will invest opportunistically in public entities besides its private equity investments. Quantum also prefers to take control positions in its investments, but in special situations, the firm will take a minority stake.
Established in 2005, Rettig Group is a Helsinki, Finland-based single-family office serving as the private investment vehicle for the Cyril and Tom Von Rettig family. The firm traces its roots back to the eighteenth century when Steffen Verillius Rettig became a tobacco master in Hamburg, ultimately moving to Sweden to manage a tobacco factory. The family continued to expand its business interests and entered into the shipbuilding, iron production, and shipping industries. Over the course of the next two hundred years, the family began investing heavily in shipping, healthcare, consumer goods, and manufacturing companies.
In the early 2000s, the firm established itself as a multi-generational family office with vastly expanding interests across the Nordic countries, Europe, and the rest of the world. Today, the firm serves as the family's investment vehicle and holding company, allocating to a wide range of opportunities in an effort to preserve and grow the Rettig family's interests. The group allocates to a range of investment opportunities both directly and via fund vehicles. Asset classes of interest include private equity, real estate, private debt funds, hedge funds, public equities, and venture capital. When allocating capital, the firm implements a diversified strategy aimed to balance the short and long-term goals of the group.
In addition to fundamental research, the firm also takes into account ESG factors when investing. Rettig Group places emphasis on responsible investing targeting groups that operate in a sustainable, responsible, and ethical manner. Though the firm primarily invests on its own, they have historically co-invested alongside other like-minded investment groups and family offices. Past co-investment partners have included Hartwall Capital and Ahlström Capital.
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October 06, 2021
Renae Hatcher is a member of the marketing team at FINTRX - focused on delivering targeted & relevant family office and registered investment advisor content to our subscribers.