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
President & Chief Operating Officer
Mr. Luce joined HMC in 1995 and serves as 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. He serves on the Investment Committee for the Community Foundation of Greater Birmingham and on the Board of Directors of Presidential Financial Corporation, Dent-A-Med, Inc., United Way of Birmingham, Children’s Harbor, and Alabama School Readiness Alliance. 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 Harbert, Mr. Crosland was co-managing partner of Atlanta Equity Investors, LLC, a middle market growth equity and buyout fund. Prior to Atlanta Equity, Mr. 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, 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 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.
Winston H. Gillum, Jr.
Prior to joining HMC in May 1998, Mr. Gillum was an Engagement Manager at McKinsey & Company, Inc. From 1989 to 1992, Mr. Gillum was an accountant at Ernst & Young, focusing on middle market industrial companies. He holds a Bachelor of Science degree in accounting from the University of Alabama and a Master of Business Administration degree from Harvard University. He is also a Certified Public Accountant and Certified Management Accountant.
Steven P. McGrath
Mr. 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, 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 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.
Raymond J. Harbert Jr.
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 is currently the Grant Committee Chairman of the Harbert Employees Reaching Out (HERO) Foundation. He also serves on the Junior Board of Directors for the Birmingham Zoo and Young Executive Board of The Club.
Elizabeth J. Stewart
Mrs. Stewart joined HMC in 2010 as an Associate. She was formerly an Associate with Webster Capital, a private equity firm in the Boston, MA area. Prior to working in private equity, Mrs. Stewart was an analyst with Edgeview Partners, focusing on sell side mergers and acquisitions in the middle market. She holds a Bachelor’s degree in political science from Davidson College.
Matthew R. James
Mr. James joined Harbert 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.
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 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
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
Acquired February 2009
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
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
- 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.
HARBERT PRIVATE EQUITY
2100 Third Avenue North, Suite 600
Birmingham, Alabama 35203
Raymond J. Harbert Jr.
One Buckhead Plaza
Atlanta, Georgia 30305
Matthew R. James