FOR IMMEDIATE RELEASE
Centerfield Capital Partners, Provider of Mezzanine and Equity Capital, Raises $171 Million
for Oversubscribed Third Fund
Indianapolis, IN, May 20, 2013 – Centerfield Capital Partners announced today the final closing
of its third fund, Centerfield Capital Partners III, with aggregate commitments exceeding $171
million. The firm’s strategy of investing in privately held, high performing companies in the
lower middle market attracted strong support from both existing and new investors.
Commitments to the fund exceeded Centerfield’s $150 million target and represent
approximately a 50% increase in the amount of capital committed to Centerfield’s second fund.
Like its predecessor funds, Centerfield III will invest a combination of subordinated debt and
equity in the companies in which it invests. “Our firm provides capital to businesses generating
$15 to $100 million in revenue. Our goal is to invest approximately two-thirds of our capital in
high coupon subordinated debt and one third in equity,” explained Tom Hiatt, Founding Partner
of the firm. “Typically, we invest between $4 and $12 million in each transaction, although we
have the capacity to arrange up to $30 million in financing with participation from our
institutional limited partners.”
“Regardless of fluctuations in the economic environment, we maintain a disciplined approach
to investing,” said Scott Lutzke, Founding Partner. “We back companies with a history of growth
and profitability which are led by strong management teams. Conservative valuations are also a
critical element to our strategy. We are cautious in the amount of leverage we use to finance
our portfolio companies, and believe this discipline has been instrumental to our success.”
Centerfield provides capital for change of control transactions, recapitalizations, acquisitions,
and growth initiatives. “We pride ourselves on our flexibility to invest a combination of
subordinated debt and equity that meets the needs of the sponsor,” explained Matt Hook,
Partner. “We work closely with funded and independent financial sponsors, and with
management teams, who acquire control ownership positions in companies poised for growth.
We have a broad range of industry interests, and a particular interest in firms engaged in
manufacturing and business services.”
Faraz Abbasi, Partner, added, “Centerfield provides a logical alternative to a business owner or
management team who may not want to sell a controlling interest in their company. Often, a
business owner or management team may wish to raise capital for an acquisition, to take out a
retiring partner, or to diversify wealth while maintaining operating control of a company and
participating in another stage of growth. Centerfield prefers to invest in situations where most
3000 Market Tower • 10 West Market Street • Indianapolis, Indiana 46204 • 317-237-2323 • Fax 317-237-2325
of the individuals responsible for a company’s past successes will continue to stay involved to
take the company to the next level.”
Centerfield Capital Partners III has already made eight investments from the new fund.
RIO Brands
Conshohocken, PA
Supplier of outdoor furniture and
accessories for the beach, backyard,
patio, and other outdoor venues
Venture Technology Groups
Farmington Hills, MI
Distributor of industrial components
to the process manufacturing and
energy industries
Matilda Jane Clothing
Fort Wayne, IN
Designer and marketer of uniquely
styled children’s clothing and
products
Direct Marketing Solutions
Portland, OR
Develops and executes direct
marketing programs on behalf of
Fortune 1000 companies
Duplication Services
New York, NY
Provider of video post-production
services, including video content
processing and distribution
Banner Service Corporation
Carol Stream, IL
Precision processor and distributor
of metal bars to the general
industrial and medical markets
Imaginetics
Auburn, WA
Manufacturer and assembler of
complex precision parts for use on
commercial and military airframes
Battery Solutions
Howell, MI
Leading provider of battery
recycling services and products
Investors in Centerfield III include pension funds, fund-of-funds, global and regional banks,
insurance companies, foundations and high net worth individuals.
For additional information, please contact Tom Hiatt or Scott Lutzke at (317) 237-2323.
About Centerfield
Centerfield Capital Partners is a leading provider of subordinated debt and equity capital to
lower middle market companies. We work closely with financial sponsors, management teams
and business owners who seek mezzanine and equity financing to grow companies. Founded in
1998, Centerfield has invested in 40 companies and currently manages in excess of $300
million.