| Blackstreet Capital Management | |
| Foundation: | 2002 |
| Founder: | Murry Gunty |
| Location: | Chevy Chase, Maryland |
| Industry: | Private equity |
Blackstreet Capital Management, LLC is a private equity firm that invests in and operates small to mid-sized distressed companies. It was founded in 2002 in Chevy Chase, Maryland,[1] by Murry Gunty, who still acts as managing partner.[2]
Blackstreet was founded by Gunty in 2002 as Milestone Capital Partners, in a joint venture with Milestone Merchant Partners.[3] Robert Pincus, the vice chairman of Eagle Bank; and Thomas Hale Boggs, Jr., a prominent Washington lawyer, promptly joined Blackstreet's board of advisers, providing the gravitas to attract investors.[4]
Blackstreet invests in distressed companies, aiming to prevent the company's bankruptcy and benefit investors.[5] Blackstreet funds niche manufacturers, internet and specialty retailers, distributors, restaurants, and healthcare service and device providers, among other industries.[6]
As of 2015, Blackstreet had invested in more than 30 companies, mostly ones with less than $150 million in annual revenue. The company acquired AlphaGraphics,[7] Jackson & Perkins,[8] Western Capital,[9] and Jerry's Subs & Pizza.[10] It sold Florida Tile to Panariagroup of Italy, Houston Harvest Gift Products to Signature Brands,[11] [12] and PJCOMN Acquisition Corporation to Essential Pizza.[13]
In 2016, Blackstreet and Gunty agreed to pay more than $3.1 million to the Securities and Exchange Commission to settle charges that they engaged in brokerage activity and charged fees without registering as a broker-dealer and committed other securities law violations.[14]
Gunty is the founder and managing partner of Blackstreet Capital. Gunty graduated from Harvard College, where he received a BA in economics, and Harvard Business School, where he received an MBA.[4] Before founding Blackstreet, Gunty was a general partner at Jacobson Partners, LP, and was a partner at Lazard Freres Real Estate, LLC. He also worked as an analyst for the Blackstone Group.[15] [16]
Gunty has sat on several boards, including Rauch Industries, American Combustion Industries, Flow Dry Technology, PJCOMN, and Florida Tile.[15]