Sentinel Capital Partners Explained

Sentinel Capital Partners
Type:Private
Key People:David S. Lobel
John F. McCormack[1]
Location:New York, New York, United States
Industry:Private Equity
Products:Mezzanine capital, Management Buyouts, Corporate Divestitures, Industry Consolidations, Going-Private Transactions, Leveraged Buyouts, and Growth Capital
Assets:$1.97 billion (assets under management)[2]
Homepage:www.sentinelpartners.com
Num Employees:35+[3]

Sentinel Capital Partners, L.L.C. is an American private-equity firm focusing on mid-market companies.[4] [5] [6] The company is headquartered in New York City and was founded in 1994 by David Lobel and John McCormack after working together at Salomon Smith Barney.[7]

Operations

Sentinel invests in companies through various private equity strategies including Leveraged Buyouts, Mezzanine capital, Management Buyouts, Corporate Divestitures, Industry Consolidations, Going-Private Transactions, and Growth Capital transactions in the United States and Canada. The firm has focused its investments in companies operating in the aerospace, defense, business service, consumer, distribution, food, restaurant, franchising, industrial and healthcare sectors.[8] [9]

Sentinel says it prefers to invest between $10 million and $75 million in businesses having enterprise values between $25 million and $250 million, and EBITDA between $7 million and $65 million. While most of its deal involve Sentinel being the majority-investor, it co-invests selectively. The firm seeks to exit its investments between five and seven years through alternative exit strategies, such as sales, mergers or recapitalizations, or an initial public offering.[10]

Investment funds

Sentinel invests through a series of private limited partnerships and its investors include a variety of pension funds, endowments, and other institutional investors. Since Sentinel's establishment in 1995, it has raised six private equity funds and one mezzanine capital fund.

Investors in Sentinel Funds include college and university endowments, foundations, state and government retirement systems, corporate pension plans, insurance companies, sovereign wealth funds, investment advisors, family offices, and Taft-Hartley plans located in the United States, Europe, China, Japan, Australia, and the Middle East.[11]

FundVintage
Year		Committed
Capital ($m)
Sentinel Capital Partners Fund VI2018$2,150[12]
Sentinel Junior Capital I2018$460[13]
Sentinel Capital Partners Fund V2013$1,300[14]
Sentinel Capital Partners Fund IV2008$765[15]
Sentinel Capital Partners Fund III2005$319[16]
Sentinel Capital Partners Fund II1998$126[17]
Sentinel Capital Partners Fund I1996$50

Controversy

Buffet Holdings Settlement

In 2010, the creditors of Buffets Holding sued Sentinel and its investment partner Caxton-Iseman Capital for “bilk[ing] Buffets of hundreds of millions of dollars" that lead to its insolvency.[18] Sentinel and CI Capital settled the lawsuit for more than $23 million.[19]

TGI Fridays

Sentinel and Triartisan Capital Partners acquired TGI Fridays in 2014 from Carlson a month after the company facing a nationwide collective action wage theft lawsuit. The company tried to prevent certification of an FLSA collective by settling with individual workers that alleged unpaid wages up to $91 million.[20] Eventually TGI Fridays settled in 2017 for over $19 million to over 28,000 workers, the largest wage and hour payout at the time.[21] [22] In 2018, TGI Fridays was also found to have failed to pay £59,348 to its U.K. staff.[23] [24]

In 2019, TGI Friday was sued in a proposed class-action lawsuit for selling potato skin chips that don't contain potato skins.[25] [26]

In April 2020, Sentinel's deal to take TGI Friday's public was called off due to "extraordinary market conditions" due to the coronavirus outbreak.[27] [28]

Past Investments

The firm has previously invested in franchise holders of some of the world's largest fast food chains such as Checkers and Rally's, Church's Chicken, Pizza Hut and Taco Bell.[29] [30]

Other past holdings include Colson Group, The Cin Group, Critical Solutions International, Driven Performance Brands, Hollander Sleep Products, Luminaires, Marketplace Events, National Spine and Pain Centers, Playcore, Power Products, Quick Weight Loss Centers, Revenew, RotoMetrics, and WellSpring Pharmaceutical.[31] [32] [33] [34] [35] [36] [37] [38] [39] [40]

Current Investments

Aerospace

Business Services

Consumer

Food / Restaurants

Healthcare

Industrials

External links

Notes and References

  1. Web site: Sentinel Capital Partners, L.L.C.: Private Company Information - Businessweek . Bloomberg.com . 2015-08-26.
  2. Web site: Sentinel Capital Partners Investor Profile .
  3. Web site: PRIVATE EQUITY MARKETPLACE : Firm Profile Report. Wl1.peer3.60.com. 2017-08-10.
  4. Web site: Sentinel Capital Partners to Move Office HQ to One Vanderbilt. 2019-06-04. Metro Manhattan Office Space. en-US. 2020-05-31.
  5. Web site: Big Players Love the Lower Middle Market. en-US. 2020-05-31.
  6. Web site: Sentinel Capital builds investments, brick-by-brick - Franchise Times - September 2016 - FranchiseTimes.com. www.franchisetimes.com. 2020-05-31.
  7. Web site: Sentinel Capital Closes Second Fund at $126M -. Meikle. Brad. 1999-07-19. Buyouts. en-US. 2020-05-31.
  8. Web site: Sentinel | Private Equity | Lower | Middle Market | Management Buyouts . Sentinelpartners.com . 2015-08-26.
  9. Web site: Sentinel Capital Partners - Fund and Executive Details. 2017-09-27. Private Fund Data. en-US. 2020-05-31.
  10. Web site: Sentinel Capital Partners, L.L.C.: Private Company Information - Bloomberg. Bloomberg.com. 2017-08-10.
  11. Web site: Sentinel Capital Partners Closes Two Private Equity Funds, at $2.6 Billion. FinSMEs. 2018-01-26. FinSMEs. en-US. 2020-05-31.
  12. Web site: Sentinel Capital Partners Closes $2.15 billion Sixth Private Equity Fund . PR Newswire.
  13. Web site: Sentinel Capital Partners Closes $2.15 billion Sixth Private Equity Fund . PR Newswire.
  14. News: Jacobius . Arleen . Sentinel Capital closes 5th fund with $1.3 billion . 7 March 2019 . Pensions and Investments.
  15. Web site: Sentinel Closes Fifth Fund at $1.3 billion . PitchBook.
  16. News: Ziobro . Paul . Sentinel Sells Golf Cart Accessories Company to Audax . 7 March 2019 . MarketWatch.
  17. News: Ziobro . Paul . Sentinel Sells Golf Cart Accessories Company to Audax . 7 March 2019 . MarketWatch.
  18. News: 2010-04-12. Buffets Holdings' former owners sued by court-appointed trustee. en. Reuters. 2020-05-31.
  19. Book: Appelbaum. Eileen. Private Equity at Work: When Wall Street Manages Main Street. Batt. Rosemary. 2014-03-31. Russell Sage Foundation. 978-1-61044-818-5. 69. en.
  20. Web site: TGI Friday's paying off employees to stop suit: lawyer. Calder. Rich. 2015-01-05. New York Post. en. 2020-05-31.
  21. Web site: TGI Friday's agrees to settle wage suit for more than $19M. Fickenscher. Lisa. 2017-09-21. New York Post. en. 2020-05-31.
  22. Web site: TGI Friday's Gets Initial OK On Revised $19.1M Wage Deal - Law360. www.law360.com. en. 2020-05-31.
  23. Web site: Named and shamed: The 179 companies fined for paying less than minimum wage. Munbodh. Emma. Sembhy. Ravender. 2018-03-09. mirror. 2020-05-31.
  24. Web site: Why a Strike at TGI Friday's Is a Big Deal for Britain's Pissed Off Hospitality Workers. Cole. Matt. 2018-05-18. Vice. en. 2020-05-31.
  25. Web site: Lawsuit says TGI Fridays potato skins contain no potato skins. Inc. Midwest Communications. Sports Radio KWSN. 2020-05-31.
  26. Web site: Troncoso v. TGI Fridays Inc. (1:19-cv-02735), New York Southern District Court. www.pacermonitor.com. 2020-05-31.
  27. Web site: TGI Fridays will no longer go public in wake of coronavirus. Restaurant Dive. en-US. 2020-05-31.
  28. Web site: SPAC scraps $380M TGI Friday's deal PitchBook. pitchbook.com. en. 2020-05-31.
  29. Web site: Sentinel Capital Partners Acquires Captain D's. Visconti. Alesia. 2017-12-18. Franchise Dictionary Magazine. en-US. 2020-05-31.
  30. Web site: Prior Companies Investment. www.sentinelpartners.com. 2020-05-31.
  31. Web site: Sentinel Capital to put Checkers Drive-In Restaurants up for sale: Bloomberg - PE Hub. 18 January 2017. Pehub.com. 2017-08-10.
  32. Web site: Sentinel Capital invests in Altima Dental - PE Hub. 3 January 2017. Pehub.com. 2017-08-10.
  33. Web site: Chattanooga-based Playcore buys Worlds of Wow. Timesfreepress.com. 2017-08-10.
  34. Web site: Sentinel Capital Partners acquires Quick Weight Loss Centers. 23 August 2016. Pehub.com. 2017-08-10.
  35. Web site: SONNY'S Enterprises Inc. partners with Sentinel Capital Partners - Professional Carwashing & Detailing. 8 December 2016. Carwash.com. 2017-08-10.
  36. Web site: Fazoli's names David Hasler CFO. 6 February 2017. Nrn.com. 2017-08-10.
  37. News: Maverick behind 'Doritos Locos Tacos' to join TGI Fridays. Jennifer. Bissell. 7 February 2017. Financial Times. 2017-08-10.
  38. Web site: Sentinel acquires Revenew - PE Hub. 20 July 2016. Pehub.com. 2017-08-10.
  39. Web site: Sentinel recaps lighting products maker TLG - PE Hub. 8 June 2016.
  40. Web site: Sentinel Capital buys Marketplace Events - PE Hub. 28 January 2016. Pehub.com. 2017-08-10.

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