2013 Year in Review

As we enter the current year, we are pleased to provide a recap of both our activities in 2013 and our goals and initiatives as we progress in 2014. 2013 marked another year of healthy revenue and EBITDA growth for our portfolio companies, posting double-digit increases over 2012 based on our current 2013 estimates. Over the course of 2013, we succeeded in scaling and adding value to our portfolio companies while continuing to execute strong realization events for our investors. 

  • In June 2013, Parallel’s portfolio company Accelerated Companies completed the successful acquisition of DynaFlo Artificial Lift Systems and its affiliated companies. A well architected, highly successful manufacturer and provider of electronic submersible pump (ESP) systems, DynaFlo’s ESP offering represents a highly strategic addition to Accelerated’s existing portfolio of artificial lift application technologies.
  • In early December, we worked with Regional Management Corp (NYSE: RM) to complete the second of two secondary offerings completed by RM in the second half of 2013 from which we were successful providing full liquidity to our investors. Since completing our investment in RM in early 2007, we have returned over 4.6x capital invested in RM to investors in our most recent fund.
  • At the end of December, we worked with Moosejaw to complete the successful recapitalization of the company in collaboration with our new partners at W Capital Partners. In addition to providing liquidity to some of the company’s investors, the transaction reinforced a powerful alignment among Moosejaw’s investors going forward regarding executing the company’s value creation plan.

We are beginning to see our pipeline of attractive new platform opportunities build within our core industry categories as entrepreneurs self –select toward working with value-added investors like Parallel who have the track record for meeting their liquidity needs while helping them maximized the long-term value of their companies. We remain committed to sponsoring recaps, growth capital investments and buyouts requiring our traditional equity investment range of $10 - $30 million. However, having evaluated our pipeline of opportunities over the last several years, we continue to have exciting opportunities requiring more capital that fit squarely within our proven investment strategy. Accordingly, beginning in 2014, we have made the strategic decision to enable our investors to participate in equity investments ranging from $10 to $50 million.

 

Parallel Investment Criteria

  • $10 - $50 million equity investments
  • Sponsoring recapitalizations, growth capital and buyouts of lower middle market and mid-market companies
  • Sector Focus: Consumer facing, energy services, marketing-driven businesses
  • $10 million minimum annual revenue with strong organic growth capability
  • $3 million minimum current year EBITDA


Parallel Has Moved

Effective February 1, 2014, we are moving offices in Uptown Dallas from 2100 McKinney Avenue to 2525 McKinnon Street. (Our other contact information remains unchanged.)
You may visit or contact us at:

Parallel Investment Partners, LLC
2525 McKinnon, Suite 330
Dallas, Texas 75201

 

As always, we appreciate our relationship with you and your strong support keeping us top of mind for new investment opportunities throughout 2014.

 

Statements contained in this document which are not based on current or historical fact are forward-looking in nature and are based on known and unknown risks, assumptions, uncertainties and other factors. Actual results, performance, or achievements may differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements. Prospective investors may not put undue reliance on any of these statements. Parallel does not undertake any obligation to update or revise any forward-looking statement. An investment in any fund is speculative and involves substantial risks. Additional information regarding funds listed herein, including fees, expenses and risks of investment, is contained in the respective fund’s offering memorandum and related documents, and should be carefully reviewed. There can be no guarantee that any funds will achieve their investment objectives.