http://www.youtube.com/watch?v=Flyo75UtMhM

“We are very pleased with the performance of PWI and would like to thank the entire team for their efforts. Without their contributions, we would not have reached such a successful outcome,” said HPEF II’s Elizabeth Stewart. “We believe that the KAR acquisition of PWI was a win-win for all parties; HPEF II realized an attractive return on its investment, KAR acquired a well-recognized platform in the vehicle service contract space, and management gained the ability to grow their business with a new, well-capitalized parent.”

PWI markets vehicle service contracts through independent dealers of used vehicles in 2,200 locations in fifteen Mid-Atlantic, Midwestern and Southern states. KAR believes the acquisition of PWI will strengthen its offering to independent dealers, and that PWI’s products will be enhanced as a result of being backed by KAR’s financial strength and stability.

KAR is the holding company for ADESA, Inc. (“ADESA”), Insurance Auto Auctions, Inc. (“IAA”) and Automotive Finance Corporation (“AFC”). ADESA is a leading provider of wholesale used vehicle auctions with 67 North American locations and its subsidiary OPENLANE provides a leading Internet automotive auction platform. IAA is a leading salvage vehicle auction company with 163 sites across North America. AFC is a leading provider of floorplan financing to independent and franchise used vehicle dealers with 104 sites across North America. Together, the company provides a unique, comprehensive, end-to-end solution for its customers’ remarketing needs.

Based in Birmingham, Alabama, HPEF II, LLC is a private equity fund sponsored by Harbert Management Corporation (“HMC”). HMC is currently investing from Harbert Private Equity Fund III, LP and seeks to invest in companies located throughout the U.S. and Canada that have operating cash flow of at least $2.0 million and up to $10.0 million.

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http://www.youtube.com/watch?v=DENSy_BzFIA

HPEF III is looking for enhanced visibility in the Atlanta market. The goal is to strengthen HPEF III’s rank as an emerging frontrunner in the Southeast with continued high-growth potential in executing private equity transactions.

“David knows this market and its submarkets extraordinarily well and has what it takes to increase our visibility and help us succeed in the region,” said Mike Luce, President and Chief Operating Officer of HMC.

Crosland has 28 years of private equity and banking experience. Prior to joining HMC, Crosland spent six years with Atlanta Equity Investors. Prior to Atlanta Equity, Crosland was a founding partner of Arcapita Inc., which became a major private equity firm in the Southeast under his leadership. He began his private equity career with Investcorp International, Inc., based in New York. Prior to Investcorp, Crosland worked at Morgan Stanley & Co. in the firm’s Mergers and Acquisitions department and Manufacturers Hanover Trust Company in the Energy Division.

Crosland is Chairman of the Board of Airo Wireless, LLC and Vice Chairman of the Board of Atlanta Ballet. He earned a Bachelor of Arts degree, magna cum laude, from Duke University and an MBA from Harvard Business School.

Steve McGrath will also be joining David in the Atlanta office. McGrath’s career spans private equity, mezzanine lending, transaction advisory, management consulting and operating experience. Before joining Harbert, he was a Principal with Atlanta Equity Investors, where he worked with Crosland for five years. Prior to Atlanta Equity, McGrath worked with the private investment group, Liberty Lane Partners. Prior to Liberty Lane, he gained investment banking and mezzanine experience at Royal Bank of Canada and Chatham Capital, respectively. McGrath’s early career included experience with Andersen Consulting (Accenture) and two technology start-ups.

McGrath earned a Bachelor of Arts in Economics and a minor in History from Miami University (Ohio) and an MBA, with honors, from the Goizueta Business School at Emory University.

Crosland and McGrath will be an addition to HMC’s Atlanta office, which includes Melissa Babb, Senior Managing Director of HMC and Graham Dugoni, Marketing Associate. The office has recently relocated to One Buckhead Plaza.

HMC, an alternative asset management firm with approximately $3 billion in assets under management as of May 1, 2013, is a privately-owned firm formed in 1993 to sponsor alternative asset investment funds. Based in Birmingham, Alabama, HMC serves foundations and endowments, funds of funds, pension funds, financial institutions, insurance companies, family offices and high net worth individuals across multiple asset classes. Investment strategies include European and US real estate, venture capital, mezzanine debt, independent power, US and Australian private equity, and public securities.

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But as the recovery continues, class-A properties are looking increasingly expensive. Some investment managers are finding themselves looking to value-add strategies to find investments that will pay off…

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Known mainly for private equity and real estate, Harbert Management, home of the Harbert Value Fund run by Todd Nunnelley, may not dominate the Birmingham skyline in quite the same way, but its performance is attracting plenty of attention…

Read the full story here.

The first close, likely to be on between €30 million and €40 million, includes ‘friends and family’ investors as well as HMC’s cornerstone commitment of €25 million. That includes contributions from the firm’s 17 partners, a source said. The strong alignment of interests between the firm’s own staff and investors is a key element of Harbert’s strategy, the source added…

Read the full story here.

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The property consists of a 143,000 square foot, 18 storey multi-let office building in Chiswick, W4. At the time of acquisition, the property had a weighted average unexpired lease term of approximately 4.8 years. As part of the business plan, the lease with the main tenant, the British Standards Institution (“BSI”), was re-geared to a 15 year fixed term with the landlord taking back some underutilized space creating an overall vacancy rate of approximately 17%. Thereafter, the property underwent a capital expenditure program, managed by Canmoor Asset Management, to upgrade the common areas and systems within the building in order to upgrade the premises to modern standards and improve its attractiveness to third party tenants.

“Today’s investment environment dictates that asset selection is as important as it has ever been and to be successful you need to have true real estate skills to create an institutional product,” said Scott O’Donnell, Senior Managing Director of HMC (Europe). ”With Chiswick Tower, we were able to significantly outperform our leasing expectations in terms of rental levels and timing with the building 100% occupied at disposal. This transaction is a good example of where experienced real estate investors can add value to buildings even in a low growth environment.”

HMC (Europe) was advised by Tudor Toone and Wragge & Co.

Harbert Management Corporation (“HMC”) is an alternative asset investment management firm with approximately $3 billion in assets under management. Additional information about HMC can be found at www.harbert.net.

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Established in Melbourne in 1987, Aesop’s mission is to create a range of superlative products for the skin, hair and body, using both plant-based and laboratory-made ingredients of the highest quality and proven efficacy. Today, Aesop operates more than 60 retail locations in 11 countries, and is expected to generate approximately AUD$64 million in pro-forma sales in the fiscal year ending June 2013.

The investment by Natura will support Aesop’s current management team as they accelerate the growth of the brand internationally. Aesop will continue to be headed by its current Chief Executive Officer, Michael O’Keeffe, and will remain headquartered in Melbourne. Aesop’s founder, Dennis Paphitis, will remain involved with the company as an advisor.

Michael O’Keeffe, Chief Executive Officer of Aesop, said:

“As we look forward to growing with Natura, we would like to acknowledge the significant contribution Harbert has made to the success of the business over the last three years. Their guidance and expertise has proven extremely valuable in delivering the significant growth we have achieved.”

Jeremy Steele, Senior Managing Director of Harbert Fund Advisors (Australia), Pty. Ltd. and retiring Board member of Aesop said:

“Harbert is proud to have supported and partnered with such a high quality management team and company. Our experience with Aesop is a great example of how we can add expertise and value to companies who are experiencing growth and moving into new markets. We are proud that our assistance has allowed Aesop to develop into a leading cosmetics company and place it in a strong position for future growth, backed by Brazil’s largest cosmetics company.”

Jeremy went on to say:

“The sale to Natura has resulted in a highly successful exit for our investors. Upon release of certain escrow payments, we expect to generate a return of over 5 times money for our investors.”

Harbert continues to focus on investment in Australian companies within the lower-middle market (i.e. valued between AUD$10 million and AUD$100 million). This market is usually characterised by companies that are not used to dealing with professional investors, have no large scale finance, strategic planning or legal teams and are more reliant on existing management teams’ ongoing commitment and focus on the business. Harbert Australian Private Equity Fund II is launching in April 2013, targeting A$100m.

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