Harbert Private Equity Fund III, L.P. (“HPEFIII” or the “Fund”) is a lower middle market private equity fund sponsored by Harbert Management Corporation. The Fund’s strategy is simple – leverage our capital, wealth of resources and deep investment experience to maximize the value of businesses in which we invest. In partnership with the management teams we back, we strive to achieve compelling investment returns by enhancing company growth. HMC and its affiliates have been involved in the management and growth of privately-held companies for more than 50 years and have developed a reputation in the marketplace for success and integrity.
Michael D. Luce
Michael D. Luce joined Harbert Management Corporation (“HMC”) in 1995 and served as its President & COO. Before joining the firm, Mr. Luce worked with Bear Stearns & Company, where he served as a member of the Commitment Committee, Chairman of the Equity Committee, and as a Senior Managing Director in the New York office. While with Bear Stearns, Mr. Luce primarily focused on mergers, buyouts, and debt and equity transactions for public and private companies. Effective January 1, 2015 he was appointed as Vice-Chairman of the Board of Directors of HMC, at which time he relinquished his duties as President and COO. He remains on the Executive Committee of the Board of Directors, and several investment committees of HMC’s private market funds. In addition to his duties at HMC, he currently serves on the Board of Directors and the Investment Committee for the Community Foundation of Greater Birmingham, Board member and Co-Chairman of the Alabama School Readiness Alliance pre-K task force, and on the Board of Directors of Safe Harbor RE, LTD reinsurance. In December 2014, he ended 6 years of service on the Board of Directors of the United Way of Central Alabama. Mr. Luce holds a BBA from the University of Miami and a Masters of Business Administration from the University of Michigan.
David P. Crosland
Prior to joining HMC in May 2013, Mr. Crosland was co-managing partner of Atlanta Equity Investors, LLC, a middle market growth equity and buyout fund. Prior to Atlanta Equity Investors, Mr. Crosland was a founding partner of Arcapita Inc., which became a major private equity firm in the Southeast during his tenure. He began his private equity career with Investcorp International, Inc., based in New York. Prior to Investcorp, Mr. Crosland worked at Morgan Stanley & Co. in the firm’s Mergers and Acquisitions department and Manufacturers Hanover Trust Company in the Energy Division.
Mr. Crosland is Vice Chairman of the Board of Atlanta Ballet and on the Board of Directors of STX Healthcare Management Services, Inc. and CES Holding Company, Inc. He earned a Bachelor of Arts degree, magna cum laude, from Duke University and an MBA from Harvard Business School.
Steven P. McGrath
Mr. McGrath joined HMC in June 2013. His career spans private equity, mezzanine lending, transaction advisory, management consulting and operating experience. Before joining HMC, he was a Principal with Atlanta Equity Investors, LLC, a middle market growth equity and buyout fund. Prior to Atlanta Equity Investors, Mr. McGrath worked with the private investment group, Liberty Lane Partners. Prior to Liberty Lane, he gained investment banking and mezzanine lending experience at Royal Bank of Canada and Chatham Capital, respectively. Mr. McGrath’s early career included experience with Andersen Consulting (Accenture) and two technology start-ups.
Mr. McGrath is on the Board of Directors of STX Healthcare Management Services, Inc. He 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.
Raymond J. Harbert Jr.
Director of Finance and Administration
Mr. Harbert joined HMC in 2010 as an Associate. Prior to joining HMC, he was an Associate in the Transaction Services Strategy Group of PricewaterhouseCoopers, focusing on buy side commercial due diligence. He holds a Masters of Business Administration and a BS in Finance, both from Wake Forest University where he was a letter winner on the track team.
Mr. Harbert currently serves on the Board of Directors of Dent-A-Med, Inc., Precision Alloys Corporation, STX Healthcare Management Services, Inc., CES Holding Company, Inc. He also serves on the Board of the HERO Foundation (Harbert Employees Reaching Out) as well as the Athletic Advisory Council of the Deacon Club for Wake Forest University and the Junior Board of Directors for the Birmingham Zoo.
Matthew R. James
Mr. James joined HMC in 2013 as an Associate. He was formerly a Senior Analyst at Fidus Partners, a boutique investment bank focusing on sell-side mergers and acquisitions. Prior to his investment banking experience, Mr. James was a Senior Analyst with a multi-business holding company developing startups in the financial services sector. He holds a Master of Arts degree in Management and a Bachelor of Arts degree in History, both from Wake Forest University.
Gregory O. Irons
Mr. Irons joined HMC in 2014 as an Associate. He was formerly a Senior Analyst at SunTrust Robinson Humphrey in the Technology & Services investment banking group, where he focused on mergers and acquisitions advisory and debt and equity capital raises for companies in business services, financial technology and software sectors. He holds a Bachelor of Business Administration degree in Finance from Emory University’s Goizueta Business School.
Each situation is unique. We work with business owners and management to structure a partnership aimed at achieving all of our collective goals and objectives.
- Business services
- Financial services
- Technology-enabled manufacturing
- Health care services
- Natural resources producers
- Construction and construction-related businesses
- Revenue of $10 million – $100 million
- EBITDA of $2 million – $10 million
- Potential for 10%+ EBITDA margins
- Existing/near-term double-digit company growth
- High, single-digit industry growth; sustainable growth drivers
- Scalable infrastructure
- Defensible competitive advantages
- Generally asset-light
- Transformative inflection point
- Footprint within Southeastern, Central and Eastern U.S.
- Equity checks up to $15 million
- Buyout/growth equity/non-control investments (selectively)
- Conservative to moderate leverage
- Favor owner/operator partnerships
- Growth driven investment returns
Harbert Private Equity Fund III, LP
Oilfield and environmental services company d/b/a Central Environmental Services for exploration and production companies in West Virginia, Ohio, and Pennsylvania
Acquired March 2014
Designer, developer, and light manufacturer of cabin avionics for commercial business jets, and customized/ruggedized displays and solutions in the military intelligence, surveillance and reconnaissance market.
Acquired November 2014
Harbert Private Equity Fund II, LLC
Private label credit card company d/b/a Dent-A-Med for consumers with near or sub-prime credit histories
Acquired December 2006
Stainless Steel Processor and distributor producing flat-rolled, stainless steel precision strips and coils for OEMs
Acquired August 2007
Dental practice management company providing services to dental practices across Texas and Alabama
Acquired December 2009
Hospice management company formed by HPEF II to consolidate the highly fragemented hospice market
Exited November 2006
Media and content production, advertising sales and rights management, as well as aerial camera systems
Exited May 2008
Manufacturer of expanded polystyrene (EPS) products that are used in packaging and construction applications
Exited October 2008
Provider of prescribed pediatric extended care, home nursing, home medical equipment, and an infusion pharmacy, all specializing in medically-fragile children
Exited September 2011
Asset based lender focused on small business loans ranging from $250,000 to $2,000,000 primarily for working capital needs
Exited March 2013
Consumer finance and insurance company underwriting and administering vehicle service agreements and offering sub-prime auto loans through dealerships
Exited May 2013
Manufactures aluminum specialty dump-body trailers used in a wide variety of applications, including construction, agriculture and municipal solid waste
Exited August 2013
Behavioral health company operating an 20 bed residential treatment facility program for eating disorders and 33 outpatient behavioral health sites that treat patients with a variety of substance abuse and psychological issues
Exited May 2014
Harbinger Private Equity Fund I, LLC
THE VISADOR COMPANY
Manufacturer of Custom Wooden Stair Parts
Exited February 2003
Manufacturer of Modular Homes
Exited June 2002
Exited December 2003
Tier II Automotive Parts Manufacturer
Exited March 2004
Education and Healthcare Services Company
Exited October 2005
Paging and Telecommunications Company
Exited December 2002
- November 11, 2014 - Harbert Private Equity Fund III, L.P. Acquires Flight Display Systems
- May 6, 2014 - Harbert Private Equity Fund II, LLC, completes sale of Onward Behavioral Health, Inc.
- March 10, 2014 - Harbert Private Equity Fund III, LP, Acquires Majority Interest in Central Environmental Services, LLC
- September 5, 2013 - Harbert Private Equity Fund II, LLC Exits TBT Holding Company, Inc.
- June 13, 2013 - Harbert Private Equity Fund II, LLC Exits PWI Holding, Inc.
- June 7, 2013 - Harbert Private Equity Advances into the Atlanta Market
- March 4, 2013 - Harbert Private Equity Fund II, LLC Exits Presidential Financial Corporation
- February 17, 2012 - HPEF portfolio company, Onward Behavioral Health, Acquires Life Management, Inc.
- September 16, 2011 - Harbert Private Equity Fund II, LLC sells Child Health Holdings, Inc.