Apogem’s Patrick Koehl joined NYLIM’s Lauren Goodwin and Julien Rigon of Kartesia on an episode of the Market Matters podcast to discuss private credit in a changing interest rate environment. Listen to the full conversation for more insight directly from the middle market.
Apogem’s Louise Smith joined NYLIM’s Lauren Goodwin on the latest episode of the Market Matters podcast to discuss the private equity environment and opportunities in the middle market. Listen to the full conversation for insights directly from Apogem’s active presence investing across the middle market.
ATLANTA & CHARLOTTE, N.C.–(BUSINESS WIRE)–Kian Capital Partners (“Kian”), a lower-middle-market-focused private investment firm, is proud to announce the closing of a single-asset continuation fund to reinvest in SPATCO Energy Solutions, expanding Kian’s assets under management to just over $1 billion. The transaction provides liquidity to existing investors seeking to monetize performance to date while providing Apogem and other new continuation fund investors the opportunity to invest.
SPATCO is a leading fueling infrastructure services provider in the Southeast, Mid-Atlantic and Southwest, offering forward-thinking, turnkey solutions for America’s petroleum and EV-charging infrastructure operators. SPATCO was founded in 1935 and serves full-service convenience stores, fueling centers, electric vehicle charging locations, local and state municipalities and commercial fleet operators with a broad portfolio of services.
Kian originally invested in SPATCO in 2015 with the firm’s inaugural fund, Kian Mezzanine Partners I, L.P., providing subordinated debt and minority equity to support smaller add-on acquisitions. In September 2020, Kian acquired a controlling interest in SPATCO via an investment from Kian Mezzanine Partners II, L.P. After completing the recapitalization, John Force was promoted to CEO after working for SPATCO for over 20 years. Under his leadership, the platform has evolved into one of the nation’s leading fueling infrastructure solutions providers, with a people-centric and customer-focused foundation and a skilled field technician base regarded widely for its capabilities, fast response times and leading first-time fix rates. Since 2020, EBITDA has quadrupled as a result of eight strategic add-on acquisitions and several new branch openings. SPATCO has 33 offices spanning 16 states and approximately 1,000 team members as of June 30th, 2024.
“The completion of this continuation vehicle is a significant milestone not only for the future of SPATCO but also for our firm, as we now have over $1 billion in capital under management,” said Kian Co-Founder and Managing Partner Kevin McCarthy. “We are humbled and excited to extend our firm’s relationship with Apogem and welcome new investor relationships with blue-chip firms, including Siguler Guff and RCP Advisors. We believe there is significant opportunity for continued growth and look forward to continuing to partner with John Force and the incredible team at SPATCO.”
“As we enter this next chapter, we plan to continue executing on the robust growth plan we have developed, including rapidly expanding SPATCO’s team of technicians and continuing to pursue M&A in a highly fragmented and growing fueling infrastructure market,” said Kian Partner Jordan Lee. “We are confident that there is a long runway ahead of SPATCO, and our shared vision for the future of the platform will further solidify SPATCO as the industry’s service partner of choice.”
“With this additional investment, we are excited to build on our track record of success by adding density in existing markets and planting flags in new territories, as well as expand our scope of services for our customers,” continued SPATCO CEO John Force, who will retain ownership in the business alongside the rest of SPATCO’s leadership team. “Additionally, SPATCO will continue to expand and support its customers in the buildout and maintenance of the nation’s EV infrastructure, which is absolutely essential as technology continues to propel innovation in the energy infrastructure and equipment services sector.”
“We are thrilled to partner with the team at Kian to drive the platform’s continued growth and expansion. Kian has done an outstanding job executing its M&A and organic growth strategy thus far, as SPACTO has grown to become a high-performing business and a leader within their market,” added Apogem Capital Managing Director Mike Zeleniuch.
Campbell Lutyens acted as exclusive financial advisor to Kian and SPATCO. DLA Piper and Robinson Bradshaw acted as Kian’s legal advisors. Bass Berry Simms served as legal counsel for Apogem Capital.
In conjunction with the closing of the continuation fund, SPATCO completed a refinancing of its debt facilities raising over $200 million of new debt capital to support the company’s growth. Barings and NXT Capital provided new senior financing, and New Canaan Funding and Wells Fargo Strategic Capital provided mezzanine financing.
About SPATCO Energy Solutions
Headquartered in Charlotte, North Carolina, with 33 offices and 1,000 team members, SPATCO is a leading sales, service and maintenance, installation, and compliance provider to fueling infrastructure providers across the United States. The company is one of Dover Fueling Solutions’ largest distributors of Wayne products and offers complete environmental compliance, assessment and remediation services. With almost 90 years of experience, SPATCO employs a differentiated service-oriented model on behalf of a diverse and longstanding customer base that includes retail, industrial, commercial fleet and electric vehicle charging and fueling companies. To learn more, visit www.spatco.com.
About Kian Capital Partners
At Kian, we forge partnerships to ignite growth and build enduring value. Our goal is to provide flexible financial resources and additional operational horsepower to scale lower-middle-market businesses, realize aspirations and deliver long-term investment returns through genuine partnership. Proud to be recognized on Inc.’s Founder-Friendly Investors list for three consecutive years, Kian is a private investment firm with $1 billion of capital under management and a focus on four core industry sectors: consumer, services, value-added distribution and specialty manufacturing. Our team of seasoned investors has over 100 years of collective experience providing transformational capital solutions and board-level strategic and operational guidance to founder/owner operated businesses. To learn more, visit www.kiancapital.com.
About Apogem Capital
Apogem Capital, a New York Life Investments Company offers investors access to the middle market’s growth engine through investments in established private companies and funds. With more than $42 billion in assets under management as of March 31, 2024, the firm manages a streamlined suite of capital solutions, including direct lending, junior debt, primary fund investments, secondary investments, equity co-investments, GP stakes, and private real assets. Apogem Capital is a wholly owned subsidiary of New York Life Insurance Company (“NYLIC”), through New York Life Investment Management Holdings, LLC (“NYLIM”). For more information about Apogem, please visit apogemcapital.com.
We’re proud to be featured in New York Life Investments’ third annual Sustainability Report. This report highlights our commitment to seeking attractive and sustainable returns, establishing long-term relationships, risk mitigation, and capitalizing on value through responsible operations and investments.
Read about Apogem’s latest efforts towards building a better financial future beginning on page 32.
Read the full report here.
Explore a new report from Apogem Capital investigating the impact of private equity ownership on employment in small and mid-sized companies.
Find inside: an analysis of 20 years of portfolio company data to understand the potential impact of PE ownership on job creation, the relationship between EBITDA and employment growth, and employment growth through recessions at PE backed companies.
Read the full report here.
NEW YORK – Apogem Capital LLC (Apogem), a leading alternatives investment firm, today announced the appointments of Josh Niedner as Chief Executive Officer and Chris Stringer as President, effective immediately.
“Apogem has a long-standing history as a leading middle market alternatives investor, given its scale, deep relationships, and established strategies,” said Naïm Abou-Jaoudé, CEO of New York Life Investment Management. “Josh and Chris have deep industry expertise and are proven leaders in the alternatives space. Together, they are uniquely positioned to lead Apogem as we continue to evolve the business to meet our clients’ needs and deliver meaningful outcomes that distinguish and differentiate Apogem in the alternatives space.”
Mr. Niedner is currently Apogem’s Head of Private Credit. In his expanded role as CEO, he will set Apogem’s vision and lead its strategic planning to drive the business forward—continuing to bring innovative solutions to clients in the alternatives industry. Mr. Niedner will also oversee the operations, finance and administrative functions of the firm, while continuing to lead the Private Credit business.
Mr. Stringer is currently Apogem’s interim CEO and Head of Private Equity. In his new capacity as President, he will collaborate closely with Mr. Niedner to lead important initiatives including, strategy, recruiting and deepening relationships with third-party clients and private equity firms. Mr. Stringer will continue to lead the Private Equity business.
“Josh’s appointment as CEO is a great opportunity for Apogem and I’m delighted to work in close partnership with him to continue to lead the firm forward,” said Mr. Stringer. “I look forward to focusing on what I consider my passion—developing and building our robust suite of investment capabilities and engaging with our clients as Head of Private Equity.”
Mr. Niedner lauded the Apogem team and the firm’s expertise as he assumes the CEO role. “I’m excited to lead our incredibly talented people as we leverage our time-tested investment capabilities along with the broad sourcing networks that have driven consistently strong performance over time. I look forward to building on that success as we work together to propel our business forward.”
About Apogem Capital
Apogem Capital, a New York Life Investments Company offers investors access to the middle market’s growth engine through investments in established private companies and funds. With more than $41 billion in assets under management as of December 31, 2023, the firm manages a streamlined suite of capital solutions, including direct lending, junior debt, primary fund investments, secondary investments, equity co-investments, GP stakes, and private real assets. Apogem Capital is a wholly owned subsidiary of New York Life Insurance Company (“NYLIC”), through New York Life Investment Management Holdings, LLC (“NYLIM”). For more information about Apogem, please visit apogemcapital.com.
About New York Life Investments
With over $716 billion in Assets Under Management as of December 31, 2023, New York Life Investments, Pensions and Investments’ 25th Largest Money Manager*, is comprised of the affiliated global asset management businesses of its parent company, New York Life Insurance Company, and offers clients access to specialized, independent investment teams through its family of affiliated boutiques. New York Life Investments remains committed to clients through a combination of the diverse perspectives of its boutiques and a long-lasting focus on sustainable relationships.
NEW YORK, January 17, 2024 — Apogem Capital and OA Private Capital today announced the final closing of their RidgeLake Partners (“RidgeLake”) debut middle market focused GP stakes fund with over $1.1 billion in total commitments. RidgeLake launched its GP stakes program to provide investors access to minority equity investments in middle market GPs with approximately $1 to $10 billion of AUM. The RidgeLake program consists of both the main fund and a related co-investment vehicle.
“We are truly grateful for the support and confidence our investors have shown in us, particularly in today’s challenging fundraising environment,” said Todd Milligan, Managing Director at Apogem Capital and co-head of RidgeLake Partners. “We believe we are well positioned to take advantage of the attractive GP stakes investment opportunity given our long-tenured private markets history and more than 300 combined GP relationships within the middle market.”
RidgeLake’s investor base is composed of a diverse group of limited partners, including commitments from insurance company, wealth management, foundation, family office, and high net worth investors. The RidgeLake team has completed six investments to date in the fund and will seek to expand the portfolio by leveraging its existing GP relationships and deep connectivity within the middle market.
“We are excited about the opportunity to provide growth capital and strategic value to our GP partners while allowing their management teams to maintain their entrepreneurial spirit and incentive to deliver strong performance,” said Michael Lunt, Managing Director at OA Private Capital and co-head of RidgeLake Partners. “It’s a true partnership approach where we strive to add value long after the investment closes through our network and middle market experience.”
Capstone Partners, a Mizuho Company, served as placement agent for the fund, and Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel to RidgeLake.
About RidgeLake Partners
RidgeLake Partners, a strategic partnership between OA Private Capital and Apogem Capital, a New York Life Investments affiliate, focuses on acquiring minority equity stakes in middle market private equity firms. RidgeLake seeks to partner with firms focused on buyout, growth, distressed, secondaries, real assets, or opportunistic credit strategies across the private markets. RidgeLake aims to forge long-term relationships with its general partners, bringing strategic counsel from more than 40 years of combined middle market investment experience.
Media Contacts
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Explore a new report from Apogem Capital and Coalition Greenwich analyzing how middle market private equity sponsors are navigating an environment characterized by volatile public markets, geopolitical uncertainty, and persistently high inflation. The report features trends and insights from more than 100 interviews with managing directors and partners at middle market private equity sponsors in the US.
The research revealed sponsors in the middle market could benefit from less competition for assets and more consistent opportunities for attractive exits relative to larger peers and sponsors operating in other segments of the market. Overall, participants articulated five strategies they are adopting to maximize the advantages in the middle market to negotiate challenging market conditions, outlined below:
- Build diversified portfolios emphasizing recession-resilient sectors
- Focus on creating value through operational improvements
- Lean into Environmental, Social and Governance (ESG) and Diversity and Inclusion (D&I) initiatives
- Capitalize on fundraising by larger private equity sponsors for attractive exit opportunities
- Cultivate relationships with reliable partners
Based on the findings, it is clear that middle market sponsors are preparing for a challenging period ahead. We believe cycle-tested managers with unique value-add should be well-positioned to navigate this complex environment, mitigate risks, and potentially produce attractive results.
View the full report here.