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Behrman Capital Closes ~$500 Million Continuation Fund for Micross Components
Continuation Fund Provides Incremental Capital to Accelerate Growth and Support Future M&A
New York, NY, February 28, 2022 – Behrman Capital, a private equity investment firm based in New York, today announced the closing of Behrman Capital Micross CF L.P., a new single asset continuation fund of approximately $500 million in connection with the sale of its portfolio company Micross Components (“Micross” or the “Company”), the leading global supplier of turnkey high-reliability microelectronic product and service solutions for aerospace, defense, space, medical and industrial applications, by Behrman Capital VI L.P. (“Fund VI”) and other investors. The continuation fund, managed by Behrman Capital, will be supported by new and returning limited partners, anchored by funds managed by Apollo Global Management, Inc. and its affiliates (collectively “Apollo”) and funds managed by BlackRock’s private equity secondaries team. Behrman Capital and existing Fund VI limited partners rolled significant proceeds into the continuation fund as part of the transaction, and Micross management also rolled the majority of its equity proceeds.
Micross has grown revenue organically and through M&A by more than tenfold since being acquired by Fund VI in 2018. Behrman first acquired the Company as Corfin Industries before merging it with Micross in 2020 to form a differentiated service provider in the high-reliability electronics market with industry-leading service and product capabilities. More recently, in May 2021, Micross acquired Semi Dice, marking a further expansion geographically and into the medical end market. Micross is led by Vincent Buffa as Chairman and CEO. Mr. Buffa is the former CEO of Data Device Corporation, another Behrman Capital investment which was sold to Transdigm in 2016 for $1 billion.
The continuation fund transaction will provide incremental capital to drive organic growth initiatives, support the continued execution of the Company’s M&A pipeline and enables Micross to fully capitalize on the strategic initiatives undertaken over the past four years.
Simon P. Lonergan, Managing Partner of Behrman Capital, commented: “Micross has been one of our largest and best-performing portfolio companies within Fund VI. We are pleased to continue our longstanding partnership with Vince and the team, allowing Micross to fully exploit the attractive growth opportunities available to the Company. We are also pleased that the continuation fund has secured a high-quality limited partner base, led by Apollo, and including significant support from Fund VI investors, many of whom have chosen to re-invest proceeds from the Fund VI transaction in the new continuation fund.”
“Over the past few years, Micross has delivered impressive financial performance and achieved significant strategic progress, through support of our valued customers with a comprehensive, one-stop portfolio of solutions in high-reliability electronics,” said Mr. Buffa. “We have built our market-leading position through acquisitions and have strengthened our leadership team with best-in-class talent, all under Behrman’s ownership. We very much look forward to continuing our relationship with Behrman and are excited that our expanded capital base will put us on an even stronger footing.”
Apollo Partner Jason Scheir added, “We are excited to support Behrman and Micross management in their next phase of growth as a world leading supplier of high-reliability microelectronics. This transaction is indicative of the solutions Apollo provides to GPs as a value-added capital partner.”
This continuation fund marks the second GP-led transaction that Behrman Capital has completed. In 2012, Behrman Capital closed Behrman Capital PEP L.P. (“PEP”) which was one of the first multi-asset continuation funds formed in the market. Capitalized at ~$1 billion, PEP acquired a portion of the investments held by Behrman Capital III L.P.
For Behrman Capital, Jefferies LLC served as financial advisor, and Goodwin Procter LLP and Ropes & Gray LLP served as legal counsel. Blackstone Credit led the debt financing as part of the transaction.
Micross (https://www.micross.com) is a leading global provider of mission-critical microelectronic components and services for high-reliability markets. Micross provides a wide range of product and service solutions to customers, including Die & Wafer services, Advanced Interconnect Technology, Custom Packaging & Assembly, Component Modification Services, Electrical & Environmental Testing and other high-reliability products and services. In business for more than 40 years, Micross’ extensive high-reliability capabilities serve the Aerospace & Defense, Space, Medical and Industrial markets, among others. Micross possesses the sourcing, packaging, assembly, engineering, test and logistics expertise needed to support applications throughout their entire program life cycles.
About Behrman Capital
Based in New York City, Behrman Capital was founded in 1991 by Grant G. and Darryl G. Behrman. The firm invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses. The company’s investments are focused in three industries: defense and aerospace, healthcare services, and specialty manufacturing and distribution. Since its inception, the firm has raised $4.0 billion and is currently investing out of its sixth fund.
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