HCAP Partners, a diversely owned private equity fund with offices in the University Town Center area, announced multimillion-dollar investments in two tech companies: industrial automation specialist PACIV and residential water monitoring specialist Flume Inc.
The investments are part of HCAP Partners’ $353 million Fund V, which held its final close in August.
Specifics of the investments in PACIV and Flume were not disclosed. Generally, HCAP investments are in the range of $3 million to $25 million.
In addition, HCAP Partners announced early this year that it has added an employee benefit for every company in Fund V: the ability to get up to $1,500 in emergency funds in times of financial need. The funds can go toward expenses that can strike a blow to an employee’s personal finances, such as car trouble, a death in the family or a natural disaster. Employees may draw up to $1,500 from the fund every year. The funds do not need to be repaid.
Managing Partner
HCAP Partners
The fund is a charitable vehicle seeded by the HCAP team, said Managing Partner Tim Bubnack. HCAP Partners’ management believes this pooled model – where multiple companies may draw from a common benefits pool – is the first-of-its-kind in the private equity world.
The employee assistance fund is being administered through the Canary technology platform. Canary is based in New York City.
The effort aligns with HCAP Partners’ aim to provide quality jobs to low – to moderate income workers, and frontline workers.
“The ongoing wellbeing of our portfolio company employees is foundational to their personal lives and career development as well as the economic success of the businesses we invest into,” said Bubnack. “We are pleased to provide this additional resource to the employees of our portfolio who may be experiencing difficult situations in their lives. The HCAP Employee Assistance Fund is an important part of our ongoing work with portfolio companies via our Gainful Jobs Approach to offer living wages, support wealth creation, provide opportunities for advancement, cultivate inclusive workplaces and promote employee health and wellness.”
SBIC Program Participant
HCAP operates as a U.S. Small Business Administration SBIC, or Small Business Investment Company. The SBIC program issues debt to venture capitalists, private equity funds and other vehicles that invest in small, scaling businesses.
Institutional investors such as foundations, banks and private wealth managers participate as limited partners in the SBIC.
HCAP Partners’ investment in PACIV was announced earlier this month (July 5). The transaction is part of a co-investment with Michigan-based Blackford Capital, which announced its acquisition of PACIV for undisclosed terms in June.
PACIV provides industrial process automation services, serving the biotechnology, pharmaceutical and medical device industries, among others. The business was founded in Puerto Rico in 1997 and has since expanded to Indiana and Ireland. It has 120 employees.
The investment in Flume was announced in June.
Based in San Luis Obispo, Flume was inspired by the California drought. The Flume Smart Water System consists of an easy-to-install sensor that adapts to most existing home water meters. The sensor communicates water use to the homeowner in real time. Homeowners as well as water utilities can use Flume to save water through continuous monitoring of indoor and outdoor water consumption.
Lower-Middle Market Focus
HCAP Partners is a diversely owned private equity firm specializing in providing mezzanine debt and private equity for underserved, lower-middle market companies. The firm seeks to invest in established businesses generating between $10 million and $100 million in revenues in the healthcare, software, services and manufacturing industries.
HCAP Partners has invested in more than 60 companies since its founding. Through ongoing, active engagement with portfolio companies, HCAP Partners provides value-added resources to help optimize performance and increase enterprise value.
Among its San Diego investments are Confirm Biosciences, Mission Healthcare and Veyo, all part of Fund IV. HCAP Partners has since exited the three investments.
HCAP Partners
FOUNDED: 2000 as Huntington Capital
MANAGING PARTNER: Tim Bubnack
HEADQUARTERS: University Towne Center
BUSINESS: Private equity firm and impact investor
AUM: More than $670 million across four funds
EMPLOYEES: 12
WEBSITE: hcap.com
CONTACT: 858-259-7654
SOCIAL IMPACT: Under its Gainful Jobs Approach, HCAP Partners portfolio companies offer living wages, supports wealth creation, provide opportunities for advancement, cultivates inclusive workplaces and promotes employee health and wellness
NOTABLE: HCAP Partners’ $353 million Fund V, which held its final close in August, exceeded its initial fundraising target by more than 40%
