Cancos Invests in Controlling Investments in Lower Middle Market Businesses

37

Cancos imports and distributes luxury ceramic tile and natural stone products for residential and commercial repair/remodel projects. Headquartered in Farmingville, New York

Mill Point Capital is an operationally focused private equity firm focused on controlling investments in lower middle market companies. They aim to enhance portfolio value through transformational strategic initiatives and operational improvements implemented with care.

Company Overview

Mill Point Capital, established in 2017 and based out of New York, NY, specializes in controlling investments across lower middle market businesses that span industrial, business, and IT services in North America. Mill Point has raised $1.4 billion in cumulative capital commitments.

The firm seeks out situations allowing it to use its operational expertise, such as corporate carve-outs or mismanaged companies. Furthermore, they look for opportunities that can be transformed through capital infusion and management change.

The company currently maintains over 35 operating businesses within its portfolio and is looking to grow these by increasing scale, diversifying product lines, and entering new markets. Furthermore, it aims to optimize current portfolio operations by decreasing operational expenses and improving cash flow.

Mill Point Capital employs twelve investment professionals, four senior associates, three junior associates, and two support staff. Mill Point Capital does not provide bonuses for bringing new clients on board nor receive referral payments from outside entities. As a registered investment adviser, it offers services to six private equity funds, including Mill Point Capital Partners L.P. and Mill Point Capital Affiliates Fund II L.P.

Industry Focus

Founded in 2017, this firm specializes in control investments of lower-middle market businesses across North American industries such as industrial, business, and IT services. Their experienced team of investors and executive partners seeks to enhance portfolio company value through transformative strategic initiatives and operational enhancements implemented rigorously within portfolio companies.

Mill Point recently made headlines for acquiring Cancos, a specialty distribution and sourcing services provider to the energy, power, and infrastructure industries. Once received by Mill Point with the existing management team intact, Cancos will continue growing its core business while expanding into new markets through industrial and commercial distribution opportunities, including increasing its presence in the oil & gas market by purchasing existing companies and acquiring additional assets.

Alongside its private equity activities, this firm also offers advisory services. These services include identifying investment opportunities, negotiating terms of investment agreements, and monitoring investments of their investment vehicles before realizing dispositions for these. In addition, financial consulting and advice are offered to companies seeking growth capital.

Located in New York, United States, and employing over 200 staff members, the firm manages an array of private equity and venture capital funds and other investment vehicles in its portfolio.

In June 2018, this firm managed over $1.4 billion in client assets, serving private equity funds and institutions within the United States and internationally.

Established in 1986 and located in New York, New York, The Business Capital Group LLC invests in small to midsize private businesses, recapitalizations, corporate divestitures, management buyouts, growth equity for public companies, recapitalization, and recapitalizations as well as management buyouts with total fund commitments exceeding $1.9 billion.

Current holdings in our portfolio:

Company Financials

Mill Point Capital, based in New York City, makes control investments in lower middle market businesses, emphasizing industrials and business services in North America. Mill Point’s investment professionals and Executive Partners aim to maximize portfolio company value through transformative strategic initiatives and operational improvements, having raised an aggregate amount of $1.4 billion through cumulative capital commitments.

Mill Point Investment’s portfolio comprises multiple operating companies across various sectors, such as Finance and accounting Technology and GovTech. URT United Road Towing also belongs to this portfolio, an industry leader offering vehicle management solutions to public and private-sector clients. Mill Point’s investment professionals boast long-standing investment records with proven success navigating various market cycles across multiple industries and markets.

Additionally, the firm places great emphasis on building relationships with senior executives at portfolio companies to identify additional growth opportunities. Our team boasts deep domain expertise across every sector, and our partners understand the challenges their portfolio companies are up against – thus offering invaluable advice and assistance to each portfolio company in our portfolio.

Mill Point Capital LLC acquired Construction Resources LLC (CR) in 2022. CR is a distributor of high-end porcelain, stone, glass, ceramic, and mosaic tiles used for residential and commercial repair and remodel markets, as well as interior design services, with its showrooms featuring over 1,200 designed vignettes that internal design teams have fully decorated.

CR has an outstanding growth and customer service excellence history, creating long-lasting relationships with many of its customers. In the future, CR plans on capitalizing on these strengths while taking advantage of all possible growth opportunities within its business.

Mill Point Capital boasts a team of skilled investment professionals dedicated to the middle market. Led by Michael Duran as its Managing Partner and having previously served as an investment banking associate at CSFB. Duran received his BA degree from Northwestern University and an MBA from Columbia Business School.

Company Management

Mill Point Capital LLC is a lower middle-market private equity firm. Their team comprises senior investment professionals with vast industry knowledge and Executive Partners who were once executives of successful companies within Mill Point’s target industries. They can use this experience to drive portfolio company value through transformative strategic initiatives and operational improvements.

This firm specializes in purchasing control investments in lower middle-market companies in industrial, business, and IT services industries. Their executive partners possess extensive expertise in these sectors, including management buyouts, recapitalizations, corporate divestitures, and distressed acquisitions. Furthermore, this firm provides advisory services to private equity firms and individual investors.

Its headquarters are in New York, NY; its significant competitors are Centerbridge Partners, Dominus Capital, and Sycamore Partners. However, unlike some of its rivals, this firm does not provide incentive compensation to employees who refer clients; instead, it relies on employee expertise in developing relationships with potential clients.

Mill Point Capital employs approximately 270 individuals worldwide. Their primary office can be found at 104 West 4 Oth Street in New York City 10018; no international locations exist for their operations.

The company has an outstanding record of increasing earnings per share and revenue. Earnings increased 8% year-over-year while revenue surged 11%, totaling $42 million – all indicative of its dedication to provide superior returns for shareholders.

Additionally, the company has invested in technology infrastructure. This has improved productivity and reduced costs; debt has also been reduced, and cash flow has improved significantly.

Mill Point Capital recently acquired VMS, a leading provider of integrated administrative software and revenue enhancement solutions to local government agencies in the Midwest region, expanding across the US with their answers. Mill Point Capital sees this acquisition as an excellent way to diversify its portfolio and boost profitability.