Black Eagle Rescue Equity Pitch 8 09


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P-Tech Advisors Business Development for BlackEagle Partners

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Black Eagle Rescue Equity Pitch 8 09

  1. 1. BlackEagle Partners Fund, L.P. A Lower Middle Market Turnaround Fund Providing Liquidity and Solutions in an Illiquid Market Confidential | Not For Distribution
  2. 2. BlackEagle Partners Overview Right size, strategy and market space $175 million fund with final closing in July 2008 Operationally intensive approach to investing in and improving troubled companies Planned implementation of post-acquisition improvements Key alliance with Caledonia Group provides operating leverage Tools, capability and experience necessary to deal with complex situations Buyouts of distressed / operationally challenged companies Lower middle market No investments in telecom, high-tech or real estate; no revenue driven turnarounds BlackEagle investments are defined by: Enterprise value below $100 million; EBITDA negative to $20 million Conservative capital structures Purchase price supported by sizeable asset base 2
  3. 3. P-Tech Advisors Transaction Origination Initiative P-Tech Advisors focuses on helping middle market private equity firms, private companies and financial institutions find and execute transactions, raise capital and work though special situations P-Tech Advisors Michael Petix, CPA, MBA 44942 Oak Forest Drive Northville, MI 48168 248.514.3555 P-Tech Advisors is engaged to originate new investment opportunities through the lending, legal and turnaround advisory community on behalf of BlackEagle Partners 3
  4. 4. Investment Criteria Operationally focused investors Investment opportunities in companies ranging from financially sound but operationally underperforming, to operationally sound with broken balance sheets to deep in distress Underperforming or troubled businesses Non-core subsidiaries of larger entities Companies in breach of their covenants In or near bankruptcy Impacted by recession and lack of liquidity in credit markets Out-of-favor industries Focus on investments with a path to control Requiring between $5 - $40 million in equity capital across a range of industries Direct control equity Debt restructurings, DIP financings, equity for deleveraging or strategic acquisitions 4
  5. 5. “Broken Markets” – Challenges and Opportunities Capital and liquidity in an illiquid market Asset-based and lower middle market lenders with challenged loans, business owners and professionals helping to manage credits lack refinancing alternatives in the current market Most management teams and owners unable to take necessary actions often ending in a liquidation BlackEagle brings capital and operational improvement to challenging situations Mandate to invest in challenging situations Many private equity groups with available capital are avoiding challenged companies or out- of-favor industries Difficulty refinancing troubled deals at any price Companies missing historic opportunities for strategic growth due to lack of capital Lenders and owners can create opportunity for resolution of illiquid, challenged loans Lenders can exit the credit or reduce exposure and bring in new liquidity Owners can partner with BlackEagle to drive operational improvement and preserve value verses inferior alternatives Fix balance sheets through debt acquisition / conversion or new equity infusion Improve operations to provide optimal recovery for lenders and optimal value of owner’s remaining share 5
  6. 6. Competitive Advantage Proven ability to create value through operational improvements Envisioning a new future for distressed companies A long history of transforming distressed businesses Partner with critical legacy management at all levels and integrate with new hires Affiliation with Caledonia Group; utilize for due diligence, interim management, policy deployment and implementing systems for safety, quality, delivery and cost Extensive history of distressed investing has led BlackEagle to become the “go to” source of capital for special situations Direct and relevant insight or contacts in every target deal Sterling reputation in the distressed industry; “user friendly” Awarded Private Equity Turnaround Deal of the Year by Global M&A Network in June 2009 (recognized acquisition of InStar Services Group) 6
  7. 7. The Investment Team Seasoned and experienced turnaround and private equity investors Michael D. Madden, Managing Partner 20+ years in investment banking; Head of Banking at Kidder Peabody and Lehman Brothers 13 years in private equity, most recently with Questor Management Wharton MBA, LeMoyne College BA Garrett P. Kanehann, Partner 17 years experience, most recently with Questor Management Specialist in executing and financing distressed transactions Wharton MBA, Notre Dame BA Jason G. Runco, Partner 16 years experience, most recently with Questor Management Served as CEO of a $30 million family business Michigan MBA, Miami JD, Colorado BA Harry Watson, Partner 30+ years experience, most recently as Founder/Chairman of Caledonia Group Inc. First mover in implementing lean principles in private equity UCLA PhD, Western Ontario, Honors BA Gene Matalene, Chief Administrative 25+ years of transaction experience with EOS Capital, Paine Webber Development Fund, Drexel and Kidder Peabody Extensive industry experience in investment banking and private equity Columbia MBA, North Carolina BA Michael Monroe, Vice President Bryan Tolles, Associate Michael Wheatley, Associate 7
  8. 8. Investments Investing in and supporting change Existing Portfolio Cabinet manufacturer, Eurodesign Insurance restoration and related service provider, InStar Services Group Heavy-duty and auto aftermarket chassis and suspension component supplier, Rockford Products Broach tool and machine manufacturer, Federal Broach & Machine Company (in conjunction with Apollo Management) Target Industries Aerospace and defense Building products and construction services Business and consumer services Consumer products Distribution Healthcare products and services Industrial products and services Natural resources Niche manufacturing Transportation 8