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Private equity · Madison Avenue, New York

Private equity for smaller middle-market companies and the management teams that run them.

We make control investments in established companies that lead their sectors, through recapitalizations, management buy-outs, build-ups, and growth capital. Then we sit beside management as partners while they execute the plan.

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Investing since 1994 · More than 20 equity transactions

535 Madison Avenue, New York, NY 10022 (917) 388-9494 gates@townhillcapital.com

A · EBITDA at investment
$3M to $15M
B · Enterprise value
$15M to $100MAdd-ons can be smaller
C · Position
Control investments
D · Transactions
Recaps, MBOs, build‑ups, growth

§ 01 · Approach

More than capital, by design

“A key element of our core values is that companies we work with are our partners. Together we invest and participate in the rewards of executing on a successful business plan.”

Townhill Capital Partners

Operating advisors on the bench

Townhill works with a wide network of seasoned operating executives who have worked with the firm’s principals for more than 20 years. They have owned and run family businesses and Fortune 1000 companies. They mentor management, sit on portfolio boards, and help source add-on acquisitions.

Behind them sits a network of investment banking, senior and subordinated debt, accounting, and legal relationships that we bring to every transaction, from closing through the life of the investment.

Green street signs for Madison Avenue and East 53rd Street against Midtown Manhattan office towers
Plate II · Madison Avenue at East 53rd Street, one block from the office

As management’s partner, we take on

  1. Sourcing, valuing, analyzing, and structuring new transactions
  2. Obtaining additional equity capital and sponsorship as required
  3. Sourcing, negotiating, and structuring senior and subordinated debt
  4. Leading due diligence with accounting, legal, IT, environmental, and other advisors
  5. Leading the negotiation of the legal documents needed to close
  6. Ongoing strategic counsel to shareholders and management, and a seat on the board

§ 02 · Sectors of interest

Nine sectors we look at first

01Healthcare services, 02repair and maintenance services, 03logistics, 04waste services, 05specialty distribution, 06specialty rental services, 07contract manufacturing, 08security services, and 09aftermarket auto parts distribution.

Our experience runs across business services, healthcare services, and consumer products and services. If a company fits the criteria and sits next to one of these sectors, we still want to hear about it.

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§ 03 · Investments

Six platforms, and what became of them

  1. A technician servicing an outdoor air conditioning unit
    Fig. 1 · Facility repair and maintenance

    No. 01 · 2010 to presentActive

    FrontStreet Facility Solutions

    Platform: FrontStreet Management Group LLC · Facility services

    A national, asset-light provider of integrated facility repair and maintenance for multi-location customers: vendor selection, pricing, dispatch, and billing, from daily repairs to retail refresh projects.

    Board

    Platform formed in 2010 to acquire specialty facility services businesses; FrontStreet Facility Solutions added in 2012.

    Chairman Jay Gates · CEO Kristen Bunnell

  2. An orange refuse truck on a tree-lined lane in autumn, with bins at the curb
    Fig. 2 · Waste and recycling collection

    No. 02 · 2010 to presentActive

    RiverRoad Waste Solutions

    Waste logistics

    Outsourced, asset-light waste and recycling programs for multi-location customers, using its buying power with haulers to cut waste spend, divert the waste stream, and hold vendors to account.

    Board

    Designs and runs sustainability programs that lower waste management expense for national customers.

    Chairman Jay Gates · CEO Kristen Bunnell

  3. Airliners and rows of cargo dollies on a snowy airport apron
    Fig. 3 · Air cargo ground handling

    No. 03 · 2006 to 2012*Past investment

    Towne Air Cargo

    South Bend, Indiana · Air cargo ground logistics

    Founded in 1963. Airport-to-airport and last-mile ground transport of deferred air freight, surface cargo management for international airlines, and Rocket Expedited for time-critical loads.

    Result

    Four strategic add-on acquisitions, new geographies, and a conversion to an asset-light model.

    CEO Tom Downey

  4. A man in a wheelchair on a van lift beside a driver holding a tablet
    Fig. 4 · Non-emergency medical transport

    No. 04 · 2004 to 2007*Realized

    LogistiCare

    Atlanta, Georgia · Non-emergency medical transportation

    Manages credentialed networks of local transportation providers for state Medicaid programs and human services agencies, as a third-party logistics provider that owns no vehicles.

    Result

    Revenue and earnings nearly doubled. Sold to Providence Service Corporation in December 2008; fully realized.

    CEO John Shermyen

  5. A green commercial waste container on a cobblestone street
    Fig. 5 · Commercial waste equipment

    No. 05 · 2003 to 2007*Realized

    Oakleaf Waste Management

    Hartford, Connecticut · Outsourced waste logistics

    Waste logistics for multi-location retail, restaurant, hospitality, manufacturing, and property clients across North America, and one of its largest waste equipment rental providers.

    Result

    Four major add-on acquisitions; revenue and earnings grew more than eight times. Sold to a New Mountain Capital subsidiary in August 2007.

    CEO James Barnes

  6. A stethoscope, pill organizer, thermometer, and bandages laid out on a white surface
    Fig. 6 · Home medical supplies

    No. 06 · 1999 to 2005*Realized

    MPTotalCare

    Tampa, Florida · Home delivery of medical supplies

    Direct-to-patient delivery of supplies for diabetes, COPD, wound care, and urological conditions, broadened by eleven acquisitions between 2001 and 2004.

    Result

    Grew tenfold to about $200 million in revenue and from 5,000 to more than 135,000 customers. Sold to a Warburg Pincus affiliate in 2005.

    CEO Howard Deutsch

* Jay Gates was lead partner responsible for the investment while at Charterhouse Group Inc. Photographs illustrate each sector and are not of the companies themselves.

§ 04 · People

Led by its founder, deal by deal

Portrait of Jay Gates, Managing Partner and Founder of Townhill Capital Partners

Jay Gates

Managing Partner and Founder

Boards · FrontStreet Management Group · FrontStreet Facility Solutions · RiverRoad Waste Solutions

Jay began his private equity career in 1994 at Charterhouse Group Inc., a New York middle-market firm founded in 1973, where he sat on the investment committee overseeing business services, healthcare services, and consumer companies. He has invested across waste and facility services, logistics, business process outsourcing, healthcare services, consumer products, cable TV, wireless towers, and specialty distribution.

He formed Townhill Capital Partners as an independent sponsor to acquire platform companies in the sectors he knows best. His transactions include MPTotalCare, Oakleaf Waste Management, LogistiCare, Towne Air Cargo, Harvard Custom Manufacturing, and AAT Communications, along with add-ons such as DS Medical, Express Med, APlus, Gericare Providers, Greenleaf, IEM, and Synergy Logistics.

Value has come from the same few things each time: companies with strong organic growth, disciplined add-on acquisitions, operating improvements, and conservative use of leverage.

  1. Today
    Townhill Capital PartnersManaging Partner and Founder
  2. 1994
    Charterhouse Group Inc.Private equity, investment committee member
  3. 1992
    Arthur AndersenCorporate Advisory Services, restructuring and M&A
  4. 1992
    NYU Stern School of BusinessM.B.A. in finance
  5. 1987
    Bankers Trust CompanyAssistant Treasurer, Government and Municipal Bond Services
  6. 1987
    SUNY BinghamtonB.A. in economics

§ 05 · Contact

Bring us a company worth partnering with

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Townhill Capital Partners LLC

New York
535 Madison Avenue
New York, NY 10022
Westchester
326 Heathcote Road
Scarsdale, NY 10528