Media Center

ANNOUNCEMENT

Peninsula Capital Partners Is Moving

August 16, 2022

Peninsula Capital Partners has moved our corporate offices. Our new address is One Towne Square, Suite 1400, Southfield, MI 48076.

PRESS RELEASE

Lite Tech, Inc. Acquisition

June 28, 2022

Peninsula Capital Partners is pleased to announce the acquisition of Lite Tech, Inc. (d/b/a XenoLite) by its portfolio company Burlington Medical, LLC, representing the third major acquisition by the Burlington platform.

Lite Tech, based in Norristown, PA, is a manufacturer of radiation protection products principally serving the healthcare industry. Lite Tech is a leader in the industry with its proprietary, lightweight, eco-friendly core material, originally developed by DuPont.

Peninsula partnered with independent sponsor, Fox-3 Partners, to acquire Burlington in 2015 from the Company’s founders. Peninsula provided a combination of junior debt and equity, as well as sourced senior debt for the transaction. Over the past seven years, Peninsula has supported Burlington’s expansion efforts via organic growth and through multiple strategic acquisitions. With the completion its acquisition of Lite Tech, Burlington Medical is believed to be the world’s largest manufacturer of radiation-protective aprons for the healthcare industry.

Peninsula Capital would like to thank our professional service partners who assisted us in closing this transaction, including: Fox-3 Partners, Comerica Bank, Grant Thornton LLP, EnviroForensics, Foley & Lardner LLP and Price Benowitz LLP.

PRESS RELEASE

Seaboard Folding Box Company Acquisition

March 25, 2022

Peninsula Capital Partners is very pleased to announce its latest exit — Seaboard Folding Box Company. Seaboard, based in Westminster, MA is a market leading packaging company producing folding cartons, and principally serving the food and personal care products industries. Peninsula partnered with Management and Charter Oak Equity to complete the acquisition of Seaboard from its third-generation owner in 2014. During its investment period, Peninsula helped Seaboard grow both organically and through acquisition, completed a management succession plan, relocated the business to a modern production facility, and invested in state-of-the-art manufacturing equipment.

Peninsula Capital would like to thank our professional service partners who assisted us in closing this transaction, including Angle Advisors, Foley & Lardner, Rubin Brown and Dickinson-Wright.

NEWS - DBusiness

Peninsula Capital Partners in Detroit Invests in American Alloy; Sells Pro-Vac Platform

February 4, 2019

Detroit-based Peninsula Capital Partners has completed an investment in precision parts manufacturer American Alloy of Spokane Valley, Wash., and has sold its interest in another Washington company, Pro‐Vac, a provider of hydro‐excavation and related services. Terms of the transactions were not disclosed.

The investment in American Alloy was made by the Peninsula Fund VI LP. In the transaction, Fund VI acquired a majority interest in the company from its founder and CEO, who remains in his management role post‐transaction.

Founded in 2007, American Alloy manufacturers short‐run, precision, metal production parts, and subassemblies that are incorporated into a variety of industrial applications and products. It possesses a broad range of manufacturing capabilities, including laser cutting, water‐jet cutting, shape forming, welding, machining, sand‐blasting, painting, and powder‐coating.

“We review hundreds of investment opportunities a year, many of which are industrial‐focused machining companies, and American Alloy immediately stood out from the pack in terms of the quality of its management team, its efficient operations, commitment to quality and customer loyalty,” says Andrew Wiegand, the Peninsula Capital director at who led the investment.

“American Alloy represents a great opportunity for us to leverage the company’s many core competencies by expanding organically into other customer sectors, and via acquisition of companies with complementary capabilities and operations that may benefit from American Alloy’s sophisticated management practices.”

At the same time, Peninsula Capital Partners sold its interests in Seattle-based hydro‐excavation company Pro‐Vac to RLJ Equity Partners. Peninsula acquired a controlling interest in Pro‐Vac from its founders in 2015.

“Pro‐Vac was a very successful investment for us and a good example of our unique investment approach,” says Scott Reilly, president of Peninsula Capital Partners. “We structured a transaction that both provided meaningful liquidity for the founders while also preserving a substantial ownership position and management role for them post‐transaction.

“We then worked together closely to grow the company’s operations, capabilities, and market reach such that it was an attractive acquisition candidate for a sophisticated buyer like RLJ.”

– Tim Keenan

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NEWS - DBusiness

Detroit’s Peninsula Capital Partners Sells Interests in Alabama’s Walpar

September 5, 2018

Detroit’s Peninsula Capital Partners today announced it has sold its interests in Walpar in connection with a sale of the company to Valmont Industries Inc. of Omaha, Neb. Walpar is based in Birmingham, Ala.

Peninsula acquired a controlling interest in Walpar from its founders in 2009 with capital provided by its fourth managed investment partnership, Peninsula Fund IV LP, a $335 million committed capital fund.

The transaction resulted in all of Peninsula Fund IV’s equity ownership being acquired by Valmont. Valmont is a global company that designs and manufactures engineered products to support infrastructure development and agricultural production.

Walpar designs, engineers, and fabricates overhead road signage structures sold primarily to departments of transportation in southeastern and Atlantic Coast states. The company’s structures can also support electronic traffic signage, traffic cameras, speed monitoring devices, and other roadway apparatuses.

“Although Walpar was a small and somewhat informally managed business when we were first introduced to it in 2009, we immediately recognized that its core competencies of design and engineering were world-class, and with proper guidance, very scalable,” says Karl LaPeer, a partner at Peninsula Capital who led the Walpar investment from inception to exit.

“We believed that by introducing professional management practices and IT systems to a very capable management team, we could leverage the company’s strengths and grow it meaningfully. Accordingly, immediately after acquiring Walpar, we set about with our transaction partners, Rockgate Partners, providing the company and its employees with the tools to do their jobs better and faster, resulting in accelerated revenue and earnings growth.”

Scott Reilly, president of Peninsula Capital Partners, says the growth and sale of Walpar represents the firm’s philosophy of differentiating itself within the private equity industry by rejecting the rigid criteria of what often constitutes a good investment opportunity.

“We pride ourselves on being open-minded and flexible, and finding those diamonds-in-the-rough companies that can grow into something bigger and better,” says Reilly. “The Walpar investment also shows our patience, as we were in the deal for over nine years, steadily building the company’s capabilities while expanding its fabrication capacity and geographic reach.

“The fact that Valmont, a NYSE-listed entity, bought a company that had just $11 million of revenue when we acquired it, shows the vision and resolve of our investment team.”

Peninsula Capital is a private equity investment firm that has raised six investment partnerships totaling about $1.6 billion of committed capital. The firm has closed more than 120 platform investments since 1995.

– Grace Turner

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NEWS - DBusiness

Peninsula Capital Partners in Detroit Invests in Travel and Leisure Industry

August 23, 2018

Detroit–based Peninsula Capital Partners today announced its portfolio company, MMGY Global, has completed two acquisitions with capital support from Peninsula’s most recent investment partnership, Peninsula Fund VI L.P., with committed capital of $402 million.

MMGY is a full‐service, travel‐and‐leisure focused, marketing management firm, and both acquisitions were of London‐based companies to expand MMGY’s operational footprint into Europe and the Middle East. The first acquisition of Hills Balfour Ltd. closed in March, providing MMGY its first operational presence in Europe as well as the Middle East via a Dubai‐based subsidiary. The second acquisition of Grifco Ltd. and its affiliate, Ophir PR Ltd., closed in July.

Similar to MMGY, the acquired companies are engaged in media and public relations management services to travel and leisure companies such as hotels, cruise lines, resorts, entertainment companies, and government tourism offices.

The acquisitions are the latest in a series of growth‐oriented acquisitions of travel‐and‐leisure focused marketing management firms. Since acquiring MMGY in early 2016, Peninsula has coordinated the purchase of five additional companies, each expanding MMGY’s professional capabilities, client base, and operational reach.

“We recognized quickly the unique capabilities that MMGY possessed and how we could partner with its talented management team to leverage its core strengths via strategic acquisitions into other industry verticals and geographic regions,” says Karl LaPeer, a partner at Peninsula Capital who leads the MMGY investment.

“MMGY is a firm that stands apart in the marketing management industry by virtue of its recognition of the unique needs and demands of clients in the travel and leisure space, and by crafting its business plan to service those needs and demands. By acquiring other travel/leisure‐centric firms with complementary capabilities, clients and/or indigenous markets, we are growing MMGY into the dominant player in this specialized marketing service industry.”

Peninsula Capital is a private equity investment firm that has raised six investment partnerships totaling approximately $1.6 billion of committed capital. The firm provides customized capital solutions to middle‐market businesses seeking funding to complete acquisitions, support growth, buyback stock, or address other special situations requiring junior capital.

Peninsula developed a new, more flexible investment approach in the private equity industry and is recognized as a leader in its market, earning it the patronage of major institutional investors both in the United States and Europe. Peninsula’s unique investment approach combines elements of buyout, private debt, and growth capital funds, which allows the firm to craft tailored capital solutions for businesses, including both debt and equity, and either as a controlling or non‐controlling investor.

Since 1995, the firm has closed over 120 platform investments.

– R.J. King

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PRESS RELEASE

Peninsula Capital Partners Exits Walpar, L.L.C. Platform

August 22, 2018

Detroit–based Peninsula Capital Partners announces it has sold its interests in Walpar, L.L.C. in connection with a sale of the company to Valmont Industries, Inc. of Omaha, Nebraska, an NYSE‐listed company (“VMI”). Peninsula acquired a controlling interest in Walpar from its founders in 2009 with capital provided by its fourth managed investment partnership, Peninsula Fund IV, L.P., a $335 million committed capital fund. The transaction resulted in all of Peninsula Fund IV’s equity ownership being acquired by Valmont.

Based in Birmingham, Alabama, Walpar designs, engineers and fabricates complex overhead road signage structures, including truss, cantilevered and gantry assemblies sold primarily to Departments of Transportation in Southeastern and Atlantic Coast states. The Company’s structures typically hold large‐scale road signage, but can also support electronic traffic signage, traffic cameras, speed monitoring devices and other roadway apparatus. Walpar engineers its structures to highly specific performance, safety and appearance standards, which vary meaningfully from state‐to‐state and project‐to‐project. The company has successfully executed thousands of such projects over its nearly 45‐year history.

“Although Walpar was a small and somewhat informally managed business when we were first introduced to it in 2009, we immediately recognized that its core competencies of design and engineering were world class, and with proper guidance, very scalable,” stated Karl LaPeer, a Partner at Peninsula Capital who led the Walpar investment from inception to exit. “We believed that by introducing professional management practices and I.T. systems to a very capable management team, we could leverage the Company’s strengths and grow it meaningfully,” added LaPeer. “Accordingly, immediately after acquiring Walpar, we set about with our transaction partners, Rockgate Partners, providing the Company and its employees with the tools to do their jobs better and faster, resulting in accelerated revenue and earnings growth”.

“Walpar is an excellent example of Peninsula’s investment philosophy at work,” stated Scott Reilly, President of Peninsula Capital Partners. “We have always differentiated ourselves within the private equity industry by rejecting the rigid criteria so commonly used for what constitutes a good investment opportunity. We pride ourselves on being open‐minded and flexible, and finding those diamonds‐in‐the‐rough companies that can grow into something bigger and better,” Reilly continued. “The Walpar investment also shows our patience as we were in the deal for over nine years, steadily building the company’s capabilities while expanding its fabrication capacity and geographic reach. The fact that Valmont, a NYSE‐listed entity, bought a company that had just $11 million of revenues when we acquired it, shows the vision and resolve of our investment team,” concluded Reilly.

About Peninsula Capital Partners
Peninsula Capital is a private equity investment firm that has raised six investment partnerships totaling approximately $1.6 billion of committed capital. Peninsula provides customized capital solutions to middle‐market businesses seeking funding to complete acquisitions, support growth, buyback stock or address other special situations requiring junior capital. Peninsula pioneered the development of a new, more flexible investment approach in the private equity industry and is recognized as a leader in its market, earning it the patronage of major institutional investors both in the United States and Europe. Peninsula’s unique investment approach combines elements of buyout, private debt and growth capital funds, allowing it the rare flexibility to craft tailored capital solutions for businesses, including both debt and equity, and either as a controlling or non‐controlling investor. Since 1995, the firm has closed over 120 platform investments.

For more information about Peninsula Capital, including all of its current and former portfolio investments, please visit peninsulacapital.com or contact Peninsula directly at 313.237.5100.

About Valmont Industries (valmont.com)
Valmont is a global leader designing and manufacturing engineered products that support global infrastructure development and agricultural production.

About Rock Gate Partners
Rock Gate Partners is a Chicago‐based private investment firm that seeks to acquire lower middle‐market “mind share” leading companies with unique market positions

NEWS - DBusiness

Peninsula Capital Partners in Detroit Invests in Georgia-based Pro-Tec Fire Protection

August 17, 2018

Detroit–based Peninsula Capital Partners today announced it has completed an investment in Pro‐Tec Fire Protection in Loganville, Ga. The investment was made by Peninsula’s most recent investment partnership, Peninsula Fund VI L.P., with committed capital of $402 million.

The transaction was a recapitalization of Pro‐Tec that both provided liquidity to the company’s founders and additional capital resources to pursue acquisitions of similar companies in the fire protection, detection, inspection, and suppression industry. Terms of the deal were not disclosed.

Peninsula says it has identified numerous potential acquisition candidates, and has initiated preliminary acquisition discussions with several. The goal is to acquire a number of similar companies in the next few years, with the first acquisition expected to occur before the end of this year.

Pro‐Tec Fire Protection was founded in 2003 and has built a successful and diversified fire‐protection services business mainly focused on the Atlanta metropolitan area. Services include periodic inspections, safety code compliance, system maintenance, fire extinguisher management, service calls, and sprinkler system design and installation.

The company serves commercial customers such as industrial facilities, warehouses, office buildings, multi‐tenant housing, churches, and retail centers. Pro-Tec’s founders and top executives remain in their roles and are partnering with Peninsula to grow the company.

“Some time ago we identified fire‐protection services as an attractive industry for investment and have reviewed many companies in the space over the years, but had not found one we believed was a suitable platform to enter the industry,” says James Illikman, a partner at Peninsula Capital who led the investment.

“Pro‐Tec represents a solid platform for us to build upon in terms of market reputation, service offering, and management depth. We are delighted to have partnered with Pro‐Tec and its management team to scale the Company into a meaningful player in the fire‐protection industry.”

Peninsula Capital is a private equity investment firm that has raised six investment partnerships totaling approximately $1.6 billion of committed capital. The firm provides customized capital solutions to middle‐market businesses seeking funding to complete acquisitions, support growth, buyback stock, or address other special situations requiring junior capital.

Peninsula pioneered the development of a new, more flexible investment approach in the private equity industry and is recognized as a leader in its market, with major institutional investors both in the United States and Europe.

Peninsula’s investment approach combines elements of buyout, private debt, and growth capital funds, allowing it the flexibility to craft tailored capital solutions for businesses, including both debt and equity, and either as a controlling or non‐controlling investor. Since 1995, the firm has closed over 120 platform investments.

For more information about Peninsula Capital, including all of its current and former portfolio investments, visit peninsulafunds.com.

– R.J. King

NEWS - DBusiness

2018 ACG M&A All Stars

April 10, 2018

The Association for Corporate Growth Detroit Chapter and DBusiness magazine honor the 11th annual winners.

DBusiness magazine partnered with the Association for Corporate Growth Detroit Chapter to honor its recipients of the 11th annual M&A All‐Star Awards for 2017 activity. Winners were recognized at an event on April 10 at the Townsend Hotel in Birmingham.

Deal of the Year Under $50M
Peninsula Capital Partners, Detroit
Scott Reilly, President, CIO
Steven Beckett, Partner

By R.J. King | Photographs by Jenna Belevender

PRESS RELEASE

Scott Reilly Is Awarded ACG Lifetime Achievement Award

May 17, 2017

On April 11, 2017 Grosse Pointe Farms resident Scott Reilly was presented the Lifetime Achievement Award by the Detroit Chapter of the Association for Corporate Growth at its annual M&A All Star Awards event. The event was held at the Townsend Hotel in Birmingham and is the organization’s largest and most prestigious gathering at which professionals in the mergers and acquisition industry are recognized for their accomplishments. Several hundred people attended the ceremony, including many of the most prominent investment professionals, transaction attorneys, consultants and executives from the region.

The ACG Lifetime Achievement award is the organization’s highest honor that has been conferred by the Detroit Chapter on only a few prior occasions. The award is intended to recognize the career of individuals who have had an especially significant and lasting impact on the capital formation and transactional finance industry in Southeastern Michigan.

Mr. Reilly was recognized for his accomplishments in helping to establish and grow the private equity industry in Michigan. In 1995, he co‐founded Detroit‐based Peninsula Capital Partners L.L.C. and is its current President. Peninsula is a private equity firm that has raised six limited partnership investment vehicles totaling $1.6 billion dollars from institutional investors in North America and Europe, and has been recognized as one of the top performing investment firms of its kind. Peninsula was one of the earliest private equity firms in Michigan and its success helped pave the way for other private capital management firms in Michigan. In addition to Peninsula, Mr. Reilly also participated in the founding of two other Michigan‐based private equity firms, Huron Capital Partners L.L.C. and Superior Capital Partners L.L.C. Prior to moving to Michigan in 1995, Mr. Reilly was a resident of the Twin Cities where he participated in the development of two other private investment firms, Churchill Capital, Inc. and Northstar Capital L.L.C.

For his entrepreneurial and pioneering efforts towards establishing a private equity industry in Michigan, the Detroit Chapter of the Association for Corporate Growth bestowed on him its Lifetime Achievement Award. At the ceremony, Mr. Reilly credited his success to the constant support of his partners, colleagues and his wife of 25‐years, Lan‐Huong Reilly. When asked his thoughts on receiving the award, Mr. Reilly said, “I was certainly taken aback when first informed about the award as I did not even know I was being considered for it. Now that I have had some time to reflect on it, the full extent of the honor is apparent and I am appropriately humbled that ACG would see fit to recognize my career with this prestigious award.”

The Detroit Chapter of the Association for Corporate Growth is part of the national ACG organization which is dedicated to promoting and supporting public policies that foster and incentivize the formation of private capital, investment and job growth for middle‐market companies. For more information, please visit their website at www.acg.org/detroit/.

For more information about Mr. Reilly, please contact his office at 313.237.5100, or visit the Peninsula Capital Partners website at peninsulacapital.com.

NEWS - Crain's Detroit Business

Peninsula Capital Partners in Detroit raises sixth fund of $402 million. Firm focuses on subordinated debt, equity investments

August 31, 2016

The fund will make controlling and non controlling investments in the lower middle market, investing subordinated debt or equity in amounts ranging from $5 million to $50 million.

Detroit-based Peninsula Capital Partners LLC announced Wednesday that it has finished raising a sixth fund, with capital commitments of $402 million.

The firm, which focuses on subordinated debt and equity partnerships began raising the fund in late 2014 and had a first closing in July 2015.

“We are very grateful for the continued patronage of many of our limited partners, some whom have been investors in four, five or even all six of our funds,” President and Chief Investment Officer Scott Reilly said in a news release.

“We are further grateful for the addition of several new LPs to our investor group, with whom we look forward to building similar long-term relationships,” he said.

The fund will make both controlling and non controlling investments in the lower middle market, investing subordinated debt or equity in amounts ranging from 45 million to $50 million.

The fund has already closed five deals.

Previously Peninsula Capital Partners raised its $389 million Fund V in 2010; a $335 million Fund IV in 2005; a $271 million Fund III in 2001; a $143 million Fund II in 1998; and a $53 million Fund I in 1996.

– Tom Henderson

PRESS RELEASE

Peninsula Capital Partners Holds Final Closing on its Sixth Mezzanine and Structured Equity Partnership.

August 31, 2016

On August 15th Detroit-based Peninsula Capital Partners L.L.C. held its final closing on its sixth subordinated debt and structured equity partnership, completing its fund-raising with $402 million of capital commitments, a level consistent with the General Partner’s targeted size range. Fund-raising for Fund VI was launched in late 2014 and a first closing on over 80% of total commitments occurred a few months later in July 2015. Fund-raising was mostly completed in the first quarter of 2016, with a small final closing in August 2016, mostly to accommodate increased commitments to the Fund by existing investors.

As has been the case for all previous Peninsula partnerships, the General Partner raised the Fund entirely in-house without the assistance of a third-party fund-raiser organization. The General Partner’s President & Chief Investment Officer, Scott Reilly, principally coordinated the effort. Re-upping LPs from prior funds comprise a meaningful percentage of the new fund’s total capital.

“We are very grateful for the continued patronage of many of our LPs, some of whom have been investors in four, five or even all six of our funds.” stated Mr. Reilly. “We are further grateful for the addition of several new LPs to our investor group with whom we look forward to building similar long-term relationships. We believe our investors appreciate our 20-plus year commitment to non-sponsored mezzanine and structured equity investing.”

Peninsula Fund VI has essentially the same investment objectives as its predecessors, namely focusing on non-sponsored or independently-sponsored transactions in the lower middle market, both as a control or non-control investor. The Fund will invest subordinated debt and/or equity in amounts from $5 million – $50 million, and has already closed five investments.

“We believe the market for our sort of customized and flexible debt and equity capital solutions for businesses is as viable and robust as ever. We are pleased the fund-raising stage for Fund VI is completed, and look forward to investing the balance of its capital.” stated Mr. Reilly.

Fund VI was preceded by a $389 million Fund V (2010), a $335 million Fund IV (2005), a $271 million Fund III (2001), a $143 million Fund II (1998), and a $53 million Fund I (1996).

Contact:
Scott A. Reilly, CFA
President & Chief Investment Officer
313.237.5100

PRESS RELEASE

Peninsula Capital Partners Holds Final Closing on its Fifth Mezzanine and Structured Equity Partnership.

March 15, 2010

Peninsula Capital Partners Holds Final Closing on its Fifth Mezzanine and Structured Equity Partnership.

On March 15th Detroit-based Peninsula Capital Partners L.L.C. held its final closing on its fifth mezzanine and structured equity partnership, completing its fund-raising with $389 million of capital commitments. Despite a historically difficult market environment for fund-raising, Fund V exceeded its $350 million goal, and had the opportunity to raise substantially more capital from a supportive investor base but chose to limit the Fund’s size to a manageable level. Capital was raised from an entirely institutional investor base, including most Fund IV investors. The Fund launched fund-raising during the second-quarter of 2009, and was fully committed by year end; however, the final closing was delayed until March 2010 to accommodate a few investors’ schedules.

As was the case for its previous partnerships, the General Partner raised the Fund entirely in-house without the assistance of a third-party fund-raiser organization. The General Partner’s President & Chief Investment Officer, Scott Reilly, principally coordinated the effort, which met with much enthusiasm from existing LPs and the marketplace despite an otherwise poor fund-raising environment.

“We are deeply grateful for the continued patronage of our investors during this turbulent market period.” stated Mr. Reilly. “We are further grateful for the addition of several highly valued new LPs to our investor group. Clearly, our long-term commitment to lower middle-market non-sponsored mezzanine investing has been rewarded in the marketplace.”

Peninsula Fund V has essentially the same investment objectives as its predecessors, namely focusing on mostly unsponsored transactions in the lower end of the middle market. The Fund will invest subordinated debt and/or equity in amounts from $5 million – $40 million, with larger amounts available in conjunction with its LPs.

Fund V was preceded by a 2005 vintage $335 million Fund IV, a 2001 vintage $271 million Fund III, a 1998 vintage $143 million Fund II, and a 1996 vintage $53 million Fund I.

Contact:
Scott A. Reilly, CFA
President & Chief Investment Officer
313.237.5100

PRESS RELEASE

Peninsula Capital Partners Closes of its Fourth Mezzanine and Structured Equity Partnership.

October 6, 2005

On October 1st, Detroit-based Peninsula Capital Partners L.L.C. held its first and only closing on its fourth mezzanine and structured equity partnership. The Peninsula Fund IV L.P. garnered $335 million of capital commitments from an overwhelmingly institutional investor base, including most Fund III investors. The Fund exceeded its fund-raising target of $300 million and was fully committed within several months of its launch.

As was the case for its previous partnerships, the General Partner raised the Fund entirely in-house without the assistance of a third-party fund-raiser organization. The General Partner’s President & Chief Investment Officer, Scott Reilly, principally coordinated the effort, which met with much enthusiasm from existing LPs and the marketplace in general, resulting in an oversubscribed situation and the need to scale-back some LPs investment amounts.

“We are equally pleased and humbled that Fund IV was so warmly received by both old and new investors.” stated Mr. Reilly. “Although we knew we had a strong track record and an unique investment style, we were unsure as to how the market would react to another mezzanine fund at a time when the conventional wisdom is that the mezzanine market is both over-funded and facing new forms of competition.” Mr. Reilly added.

Most of Fund IV’s capital was committed by Fund III investors, leaving room for only a handful of new LPs to invest in the Fund. “We were fortunate to receive much support from our legacy investors as well as to gain a few new blue-chip investors. We prefer to have a small group of investors who are committed to the asset class and who can appreciate our investment approach.” Mr. Reilly explained.

Peninsula Fund IV has the same investment objectives as its predecessors, namely focusing on mostly unsponsored transactions in the lower end of the middle market. The Fund will provide sub debt or equity, or combinations thereof in amounts from $4 million – $40 million, or even larger amounts in conjunction with its LPs.

Mr. Reilly offered, “Doing unsponsored deals has always been the cornerstone of our investment philosophy, but it is not all we do. We have a number of relationships with buyout groups that view us a valued partner, and we also have co-sponsored a fair number deals with unfunded sponsor groups.”

Fund IV was preceded by a $271 million Fund III that closed in 2001, a $143 million Fund II that closed in 1998, and a $53 million Fund I that closed in 1996. Funds I & II are functionally fully invested and have thus far returned 151% and 131% of contributed capital to its investors. Fund III is close to being fully invested and has already returned nearly half its investors’ capital.

Contact:
Scott A. Reilly, CFA
President & Chief Investment Officer
313.237.5100

PRESS RELEASE

Peninsula Capital Partners Closes Third Fund at Record Level

August 20, 2001

On August 10, 2001, the Detroit-based private investment firm of Peninsula Capital Partners held the second and final closing of its third investment partnership, The Peninsula Fund III L.P. The closing added $119 million to the Partnership, increasing its total capitalization to $271 million, a figure well in excess of the Partnership’s goal.

Peninsula Fund III follows in the tradition of two predecessor partnerships as it is dedicated to providing mezzanine and structured equity capital to middle-market companies requiring funds to finance growth, acquire a competitor or consummate a management/leverage buyout. As the partnership’s general partner, Peninsula Capital Partners plans to invest the fund in 25-35 companies over the course of 3 – 4 years. Peninsula Capital Partners’ prior investment partnerships have already been fully invested. The $53 million Peninsula Fund was closed in 1996 and was invested in 12 companies, and the $143 million Peninsula Fund II was closed in 1999 and was invested in 18 companies.

Fund raising for Peninsula Fund III was launched in September 2000 with a target capitalization of $250 million. The Partnership’s first closing was held in late December 2000 on $151 million, and fund raising for the balance of the fund was completed in May 2001. Investors in Peninsula Fund III are entirely institutional and represent state employee pension funds, major insurance companies, bank holding companies, funds-of-funds and corporate pension funds. A meaningful portion of the Partnership’s capital was provided by investors that were participants in previous funds.

Since its founding in 1995, Peninsula Capital Partners has established itself as an industry leader in middle-market mezzanine and structured equity. The General Partner has pursued a strategy of focusing on profitable companies with proven and financially-motivated management teams, while avoiding technology-dependent, cyclical or over regulated sectors. This strategy has resulted in a broad range of investments in such industries as packaging, manufacturing, consumer products, specialty retail, food products, industrial services and infrastructure construction/maintenance. In each instance, the portfolio company commands a leadership position in its market niche.

For more information please contact Scott A. Reilly, President & Chief Investment Officer, at (313) 237-5100.

PRESS RELEASE

Peninsula Fund II Garners $143 Million

August 20, 1999

Peninsula Capital Partners L.L.C. (Detroit, Michigan) — The principals of Peninsula Capital Partners are pleased to announce the final closing of Peninsula Fund II, a private investment partnership with $143.3 million of committed capital, a figure well in excess of the Fund II’s original $100 million target. Fund II focuses on providing hard-to-find subordinated debt, equity and late-stage venture capital to smaller middle-market companies requiring capital to fund growth, acquisitions or changes in ownership. Limited Partners include state and corporate pension funds, commercial lenders, insurance companies, major corporations and high-net-worth individuals.

Peninsula Fund II is the successor partnership to The peninsula Fund, a similarly-focused $53 million partnership closed in 1996 that is now fully invested. Peninsula Fund II will expand upon the investment program of its predecessor by frequently investing at more than one level of a company’s capital structure and by participating at various stages of a company’s development. Such flexibility is rare in today’s capital marketplace and results in Fund II playing different roles from one transaction to the next.

A sample of this flexibility can be seen in Find II’s early investments. Fund II has already invested over $35 million in five companies, providing capital for such diverse purposes as supporting a management buyout, funding product development, buying out a retiring majority shareholder, backing an industry consolidation effort and completing an acquisition. In three of these investments, Fund II provided a strip of subordinated debt in the company and in the two other investments, Fund II invested a combination of subordinated debt, preferred stock and common stock.

“Our investment approach defies traditional categorizations such as mezzanine, buyout or venture capital”, states Scott Reilly, the General Partner’s President and co-founder, “We see ourselves as a ‘utility infielder’ within the private equity industry as we will provide traditional subordinated debt in one transaction and then act as an equity co-sponsor in the next. We are very flexible regarding investment structure; however, we are strictly a minority-interest investor.”

“Our priority is to be responsive to the demands of our transaction partners”, Mr. Reilly concluded, “We will consider filling different roles from one transaction to the next so long as we are being adequately compensated for the investment risk we are assuming.”

Fund raising for Peninsula Fund II was launched in late April 1998 and quickly garnered commitments exceeding Fund I’d capital base. Fund II’s first closing was held on October 1st, 1998 on $78 million. A second closing on an additional $50 million was held on March 31st, 1999 which brought the Fund’s capitalization to $128 million. The final closing was on August 6th which added another $15 million and topped the Fund out at slightly more than $143 million.

The General Partner of both Funds is Peninsula Capital Partners L.L.C., a Detroit-based investment management company founded in 1995 by William Y. Campbell, Scott A. Reilly and William F. McKinley. Messrs. Campbell and McKinley previously founded in 1988 W.Y. Campbell & Company, a respected investment banking organization providing M&A and other corporate finance advisory services to a broad range of middle-market and Fortune 500 clients, which was acquired by Comerica Bank in 1995. Mr. Reilly previously participated in the successful development of two other private capital management companies, Churchill Capital, Inc. and Northstar Capital, Ltd., both based in Minneapolis. The balance of Peninsula Capital’s professional team is comprised of Karl E. LaPeer and Steven S. Beckett (Senior Vice Presidents and Principals), Jon Krempel, Hector Bultynck and Christian Moye (Vice Presidents).

With the final closing of Peninsula Fund II, Peninsula Capital Partners now manages nearly $200 million between its two partnerships, making it one of the largest fund managers of its type in the State of Michigan along with such notable organizations as Questor Partners and Windpoint Partners.

For additional information please call Scott A. Reilly at (313) 237-5100.

PRESS RELEASE

Peninsula Capital Partners L.L.C. closes first fund at $53.0 million

January 1, 1997

Detroit, Michigan, January 1, 1997—the principals of Peninsula Capital Partners L.L.C. are pleased to announce the final closing of the Peninsula Fund LP, a $53.0 million mezzanine-debt private partnership dedicated to making investments in superior middle-market companies requiring capital to facilitate expansions, acquisitions or recapitalizations. The Fund targets investment sizes of $1.0 million to $6.0 million in manufacturing, distribution, financial services, retail, food and consumer products industries. Investments are typically structured as subordinated loans with both interest and equity warrant features.

Peninsula Capital Partners was founded in 1995 by Scott A. Reilly, William Y. Campbell and William F. Mckinley. Mr. Reilly, president, was previously affiliated with Churchill Capital, Inc. And Seidler Capital, Ltd., both of Minneapolis. Messrs. Campbell and McKinley are the co-founders of W.Y. Campbell and company, a boutique investment bank acquired by Comerica bank in July 1995. Other professionals include Karl E. Lapeer, formerly Manager of Private Equity activities for First of Michigan Corporation, Steven S. Beckett, formerly Vice President with Citibank and Soceite Generale, and Jon P. Krempel, formerly Corporate Finance Associate with Comerica Bank.

Peninsula Fund investors include Comerica bank, the State of Michigan Retirement Systems, AAA of Michigan, Blue Cross Blue Shield of Michigan, Masco Corporation, Republic Bank and several wealthy families. Although the Fund is formally closed, the general partner is in ongoing discussions with an investor who may enter the partnership in early 1997 and increase the fund’s capitalization to approximately $75.0 million.

Questions or comments may be addressed to Scott A. Reilly at (313) 877-9960.

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