Patriot Capital hailed an “eventful” year in a report card for 2022, the highlight of which was attainment of the $1 billion landmark in portfolio investments since the Baltimore-based private equity firm’s founding in 2000.
The storied firm, established in 2000 by Charles Bryan and Charles P. McCusker, invested its billionth dollar in July, presumably with its investment in ThinkBig Networks, which provides fiber internet service to residential and commercial customers in Maryland. Patriot Capital did not specify it, but its investment in ThinkBig came weeks after it announced the milestone.
“We’re thankful for the hard work and commitment of the current and former team members of Patriot Capital over the years that have enabled us to achieve this milestone,” the firm said. The landmark “could not have been reached without the trust placed in the Patriot team by our investors and the U.S. Small Business Administration (SBA), portfolio company management teams, referral sources and investment partners,” it added.
The billion dollars in portfolio investment came in lower middle market businesses across five investment vehicles. Over the years, Patriot Capital has also opened three new offices in Chicago, Dallas, Texas and Charlotte, N.C. The firm’s other highlights of 2022 were as follows:
- Four portfolio investments — Global Behavior Education Alliance, Shipley Associates, ThinkBig Networks and Top Down
- Acquisitions by portfolio firms — Naprotek bought Microfab; and American Equipment completed its seventh acquisition
- Three exits — Power Service Group, Metal Steel Abrasive and Fresh Edge
- Three team additions — analyst Zac Davliakos, finance associate Nick Dunbar and associate Alex Tyroler
Patriot Capital runs a family of private equity funds focused on debt capital and minority equity investment opportunities, and also serves as a mezzanine financing firm for Baltimore investment bank Bengur Bryan.
Typically, Patriot invests between $5 million and $25 million in companies with at least $10 million in annual revenue and EBITDA of $3 million. Use cases range from business expansion, recapitalization, acquisition Financing, leverage and management buyouts, and major capital expenditures. So far, it has made 145 investments, and exited 24. The number of Patriot Capital’s active portfolio companies stands at 32.
Cofounder McCusker serves as one of two managing partners. He was previously a general partner at private equity firm ServiceMaster Venture Fund. McCusker also held several operating executive positions at a joint venture between The ServiceMaster Company (SVM) and venture firm Kleiner Perkins.
A third key member of the firm’s investing team is Charles Bryan, a co-founder and president of the middle market investment banking firm of Bengur Bryan & Co. He was a co-founder of Patriot Capital’s first three funds. Today, he serves as a senior principal and adviser to Patriot Capital. Before forming Bengur Bryan, he was an industry group head and a vice president in the investment banking division of Alex. Brown & Sons.
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In its 2022 scorecard, Patriot Capital revealed its environmental, social, and governance framework and how it pushes the strategy alongside its portfolio companies. Of the 27 portfolio companies that reported employee data, 47% of all employees were non-white and 25% were female. At the board and C-level, 52% of the reporting portfolio companies have at least one female member in their executive team, and a third have at least one person representing an ethnic minority.
“We remain focused on our ESG evolution through the long-term responsible investing strategy we implemented in early 2020, furthered by Patriot Capital becoming a signatory of the United Nations-supported Principles for Responsible Investment in 2021,” the firm said.
“Our approach to responsible investing spans the entire investment lifecycle, from initial screening to active portfolio management,” it added.