Past Investments
Accelera Wireless, LLC
Accelera Wireless, LLC provides a broad spectrum of services including radio propagation modeling, site acquisition strategies and design and installation management, materials procurement and logistics, and tower development and ownership. Accelera has deployed over $4 billion of network infrastructure for clients such as Nextel, Triton Communications, Omnipoint, CellularOne, and British Telecom.
The Atlantic Baking Group
The Atlantic Baking Group (ABG) was formed to reopen the Pittsburgh manufacturing facility of Nabisco Holding Corporation. ABG produces a diverse array of high quality, reasonably priced private label snacks and crackers. ABG is jointly controlled with Soros Fund Management.
Challenger LTD
Libya-based Challenger is a provider of contract oil and gas land drilling and workover services, operating primarily in the MENA region. Following the unforeseeable events in Libya during 2011, the Company embarked upon a major asset restoration programme in 2012. Challenger’s commitment to stay in Libya during the war has proved beneficial. The Company currently has six rigs contracted, with the remaining rigs being negotiated and expected to be deployed during the second half of 2014. In FY 2014, Challenger reported an increase in gross revenues and profits.
Deyco Distribution Corporation (Realized)
Deyco is a leading distributor of magazines to specialty/alternate magazine wholesalers and retailers throughout the country and currently distributes 1,400 titles on behalf of over 160 publishers. In 2001, GEM’s position was sold to Source Interlink generating an annual compound return to GEM of 53%.
Fire-Trol Holdings, LLC (Realized)
Fire-Trol is the leading developer, manufacturer, and distributor of chemicals used to control wild-land & forest fires, and to a lessor degree structure fires, on a worldwide basis. This investment has been realized.
International Telephone & Satellite Corp. (Realized)
International Telephone & Satellite Corp. is an emerging multinational carrier providing national and international long distance service to public telephone companies in Colombia and Guatemala via satellite, fiber, wireless, and other media.
ITWorx Company
ITWorx is one of the largest software outsourcing firms in Egypt, with offices in Saudi Arabia, UAE, Qatar, Europe and the USA. The Company witnessed a record year in FY 2013 in terms of financial results, business activity and performance of major projects. ITWorx has appointed an international bank to manage the sale of the Company. It is planned to spin off the Education business into a separate legal entity based out of Dubai, since this should be more attractive to potential investors willing to pay a higher multiple for this fast-growing and high-margin business. The remaining divisions will be sold at a later date.
JAFCCO
In line with a major 18-month restructuring plan by Jordan Al Abyad Fertilizers & Chemicals Company (JAFCCO), which has been implemented under a newly-appointed CEO, overall operating costs have been reduced by trimming the headcount by 175 employees. Despite achieving revenue growth in FY 2014, JAFCCO reported a net loss due to delays and cost overruns related to the expansion project. The production capacity is expected to reach the breakeven point of 55 per cent by the end of 2014. However, a feasibility study conducted by KPMG points to the strong economic and commercial viability of JAFFCO, fuelled by growing demand for its products by target markets.
ProCare Automotive Service Solutions LLC (Realized)
ProCare Automotive Service Solutions owns and operates a network of 130 full-service automotive service centers concentrated in Ohio, Pennsylvania, North Carolina, and Texas. ProCare offers a wide range of services in the automotive aftermarket repair industry; including complex engine diagnostic service and repair.
QCON
VCBank holds a 28 per cent stake in Qatar Engineering & Construction Company (QCon), a leading engineering, procurement and construction (EPC) contracting company. It specialises in projects and plant maintenance for the oil and gas, petrochemicals, fertilizers, power and other industrial infrastructure sectors in Qatar. Established in 1975, QCon has built a dominant position, and a high reputation for quality and safety, in the niche segments in which it operates. The Company reported a 24 per cent growth in revenues for FY 2013. QCon is set to benefit substantially from contracts worth USD 200 billion to be awarded in the run up to the World Cup in Doha in 2022. The Company is being prepared for an exit in 2015 or early 2016, depending on market conditions.
Swisher International, Inc. (Realized)
Founded in 1983 in Charlotte, North Carolina, Swisher International, Inc. is the world’s leader in commercial restroom hygiene, pest control, paper and chemical products. Swisher owes its success to its outstanding franchise operations and franchise support system throughout the United States, Canada and twenty-one countries worldwide.
TCS Communications, Inc. (Realized)
TCS Communications, Inc. is the leading provider of aggregated long-distance service to independent local exchange carriers (local monopoly telephone companies) in Iowa, Minnesota, Kansas and South Dakota. Operations are based in Houston, TX and Cedar Rapids, Iowa.
Tributary Systems, Inc.
Tributary Systems, Inc. is the primary provider of storage solutions for Tandem computers, a wholly owned subsidiary of Compaq Computer Corporation. The company designs, develops, assembles, and integrates peripheral hardware and software data storage products with mid-range and high-end Tandem servers, as well manufactures and markets, under its own label, proprietary hardware and software products for sale through Tandem to its end users.
United Africa Telecom, Inc.
United Africa Telecom, Inc. is an emerging multinational carrier providing telecommunications products and services to emerging markets in Africa, specifically long distance and wireless telephone service. Operations are based in Monrovia, Liberia, and HQ is in New Jersey.
Ciesse Piumini
Ciesse is the oldest manufacturer of down outwear in Italy and is renowned worldwide for its blend of traditional Tuscan craftsmanship with natural goose down alongside the innovative use of the latest technological materials and sophisticated and elegant design for the production of premier ski and outdoor fashionwear. Ciesse has been the outfitter of choice for leading European expeditions to the Himalayas and the Antarctic as well as for the Paris-Dakar and Iceland rallies. GEM initiated discussions with Fila, the original parent of Ciesse, for an acquisition given the non-core nature of the business within the overall troubled Fila portfolio. GEM and a management team that GEM has worked with over the years in evaluating and pursuing opportunities in the fashion industry executed on a LBO. GEM has been focused in improving production efficiencies of the business, expanding distribution channels, improving the working capital management of the business, and rationalizing the costly captive retail base of the business in a capital structure turnaround investment. GEM is currently evaluating various exit opportunities.
Seminis
GEM sourced, designed and structured a transaction together with Fox Paine and Alfonso Romo that led to the “going private” of NASD-listed Seminis, Inc. Seminis at the time was the world’s leading producer and developer of fruit and vegetable seeds with more than $400 million in revenues. The investors exited their investment after Monsanto acquired the company two years later.