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He who is not courageous
enough to take risk will
accomplish nothing in life.
— Muhammad Ali
VIRGINIA CAPITAL PARTNERS provides capital and expertise to help outstanding entrepreneurs
build market-leading companies. Our $50 million fund is provided by our managing partners and
a group of blue-chip fi nancial fi rms, leading corporations and major endowments, including: Wells
Fargo, Bank of America, BB&T, Sun Trust, Verizon, American Electric Power, and the Virginia Retirement
System. Our investment partners have entrusted their capital to us until 2030. Because our funding is
virtually permanent, we have no near-term need for liquidity. Our open-ended exit strategy provides
our management partners with the freedom to realize liquidity when the timing is right from both the
company’s and the capital markets’ perspective.
We strive to partner with outstanding entrepreneurs and management. Our role is to support our
management partners as they implement their vision. Our management partnerships are carefully chosen
and have resulted in exceptionally high executive retention. Across more than thirty different portfolio
companies, senior management turnover is virtually zero.
If you have opportunities or ambition greater than your current resources, contact one of our partners.
We enjoy visiting with CEOs of growing companies, even if there isn’t an immediate capital need.
The best way to predict
the future is to create it.
— Peter Drucker
3VIRGINIA CAPITAL PARTNERS
VIRGINIA CAPITAL’S GOAL is to own an interest in a truly unique business run by outstanding people
looking for an equity partner who shares their vision. Along with patient capital, we offer our portfolio companies:
A committed partnerWe are dedicated to helping our companies
become market-leading organizations over a
number of years — not overnight.
Helpful guestLike considerate dinner or party guests who pitch
in when their host needs assistance, we are here to
help at your request, but allow your preferences to
guide our involvement in your company.
Management continuityOur role is to support superb executives
implement their vision. We want to be a trusted
advisor on key fi nancial and strategic decisions; but
we leave day-to-day operations to our portfolio
company management teams. Our management
team partnerships have worked remarkably well
— executive turnover is virtually zero.
Long-term perspectiveOur time horizon is much longer than most
private equity funds, our portfolio companies
are free to realize liquidity when the timing is
right from both the company’s and the capital
GrowthWe rely on growth, not leverage or fi nancial
engineering, as the key to our success.
No outsidersOur partners handle the entire investment
process, from initial research to ongoing contact,
ensuring confi dentiality, rapid execution and solid,
FlexibilityWe tailor each investment to the specifi c needs of
the parties involved and don’t have any minimum
Confi dentialityAll shared information is held in strict confi dence.
We are a private organization and have no public
Ownership cultureOn average, our managing partners invest twice
as much in our portfolio companies than the
typical private equity fund.
Prompt actionWe have the experience and fi nancial capability
to complete transactions in as little as 45 days.
CORE PR INCIPLES
I never did a day’s work
in my life. It was all fun.
— Thomas Edison
5VIRGINIA CAPITAL PARTNERS
VIRGINIA CAPITAL INVESTS in growth companies across a variety of industries. A sampling of our investment
experience to date includes: business services, media and communications, consumer services, healthcare, and insurance.
Virginia Capital invests in companies at all stages of development from a new start-up to expansion of an existing business
to the acquisition of an established company.
Our portfolio companies share many common traits. Specifi cally, we focus on the following elements:
■ Experienced and results-oriented management
■ Established, scalable business model
■ Opportunity to accelerate revenue growth and expand free cash fl ow
■ History of profi tability or an ability to reach profi tability quickly after our funding
■ Opportunity for sustained growth of 15% to 20% per annum
■ Signifi cant recurring revenues
■ Sustainable competitive advantage
Virginia Capital will invest from $1 million to $5 million per company and together with affi liates we can consummate
$20 million transactions. We are usually the fi rst institutional investor and often the sole investor. Virginia Capital structures
transactions in order to foster long-term growth, ensure fi nancial stability and meet the needs of the company’s owners.
Historically we have not invested in heavy manufacturing or technology companies with substantial dependence on
research and development.
Do not go where the path leads,
go where there is no path and
leave a trail.
— Ralph Waldo Emerson
7VIRGINIA CAPITAL PARTNERS
RELATIONSHIPS ARE PARAMOUNT
We are a truly committed partner who understands what our
entrepreneurs are trying to achieve. Our fi rm’s partners share their
commitment to building market-leading companies and are dedicated
to providing the energy, connections and tenacity to help make their
ambitious goals a reality. We understand that success is rarely a straight
line and have the perseverance and patience it takes to help build a
thriving enterprise. Entrepreneurs will be working with professionals
who know how to succeed and work tirelessly to help our portfolio
HERITAGE OF SUCCESS
Collectively, our portfolio represents one of the largest privately held
companies in the South Atlantic region, with more than 2,000 employ-
ees, $1 billion in revenues and more than $1 billion in assets. Over the
last 13 years we have invested in 30 companies in a variety of indus-
tries. These outstanding management partners have used our capital
to build tremendous value for themselves and our investors. We have
sold our investment in 24 of our portfolio companies generating an
average return on investment of nearly 28% per annum. These excep-
tional returns resulted from the marriage of sound business plans, out-
standing management talent, superior execution and a carefully chosen
exit when the time was right for the company and the market.
We are a trusted and reliable partner. We do what we say we will do
and are committed to the success of our partnerships in every way.
Unlike other fi rms that are also involved in investment banking, lending
or consulting, we are solely focused on private investing. Because this
is all we do, we have no other motivations or interests beyond our
portfolio companies’ long-term success.
NO PUSH TO EXIT
We have no pre-determined exit strategy. Because our funding is
virtually permanent, we have no near-term need for liquidity. We are
content to wait until conditions are optimal for both the company and
When the time is right to seek a liquidity event, we have developed a
superior process to realize the maximum all-cash, after-tax value with
the least downside exposure. Having consummated dozens of sales
and several IPOs we know how to run the most effective process to
obtain the maximum after-tax proceeds on the best possible terms.
WHY VIRGINIA CAPITAL?
8 VIRGINIA CAPITAL PARTNERS
Since 1996, we have invested in 30 portfolio companies, and of these, have successfully exited 24. Our cash-on-cash returns are 28% per annum. We believe our
genuine focus on helping each of our companies succeed is a unique quality fueling these results. Collectively, our portfolio represents one of the largest privately
held companies in the South Atlantic region with more than 2,000 employees, $1 billion in revenues and more than $1 billion in assets.
MEDIA & COMMUNICATIONSBioInformatics owns and operates the Science Advisory Board, the largest online market research panel of physicians and scientists. The company gathers market information and publishes proprietary research to the life sciences industry, including: biotech equipment suppliers, pharmaceutical companies, investment companies and venture capital funds.
Clear Signal Towers develops and operates wireless communication towers to enable mobile service providers to fulfi ll the near insatiable demand for wireless bandwidth for the “mobile internet tsunami”. Virginia Capital co-founded CST with a seasoned tower entrepreneur.
MedIQ provides continuing medical education (CME) services to doctors nationwide. The Company partners with major academic health care institutions and other leading research organizations to provide timely and thorough CME content to physicians.
Wireless Partners acquires, develops, and operates wireless communication towers. The company was sold in 2007.
Physicians Practice is the second-largest physi-cian journal in the United States. The magazine is co-branded with 40 major university hospitals, including: Harvard, Yale, the University of Virginia and the University of North Carolina. Physicians Practice was sold in 2007 to a strategic buyer.
Shared Tower Sites develops, acquires, owns and operates a portfolio of wireless communication towers. Virginia Capital co-founded Shared Tower Sites and raised additional equity during the telecommunications collapse in 2002. STS was sold to a strategic investor in 2005.
Virginia Telecomm Towers acquires, develops, and operates wireless communication towers. Virginia Capital co-founded VTT. The company was sold to a strategic acquirer in 1998.
Virginia Business Publications produces Virginia Business magazine a 25 year old statewide business publication providing monthly insights to Virginia businesses and government leaders. Virginia Capital partnered with the publisher to purchase the magazine in 2009.
BUSINESS & CONSUMER SERVICESAmerican Exposition Centers acquired, devel-oped, owned and operated fl ea markets in the southeastern United States. The company was sold to a fi nancial buyer in 2007.
Car Pool is one of the largest full-service car wash chains in the U.S. The company owns and operates seven locations in the Richmond metropolitan area, provides professional detail services and is a 30-year-old brand with one of the most widely recognized commercial names in its market.
Cornett Hospitality owns and operates 15 casual dining restaurants in Virginia, West Virginia and Pennsylvania. The Company was created through the merger of nine affi liated restaurant companies, and has a management team that previously built and sold the largest chain of Kentucky Fried Chicken restaurants in the Mid-Atlantic.
OUR TR ACK RECORD
9VIRGINIA CAPITAL PARTNERS
Martha Mills acquired an 80-year-old textile mill and is in the process of reclaiming the heart pine lumber, steel and bricks in an environmentally friendly manner.
Mid-Atlantic Dairy Queen owned the largest chain of Dairy Queen restaurants in the Mid-Atlantic. Two of the company’s twelve restaurants were consistently ranked among the leading revenue producers in the entire 6,000 International Dairy Queen restaurant system (owned by Berkshire Hathaway). Mid-Atlantic DQ was sold in 2008 to its management.
Sewickley Partners acquired several thousand acres of pine plantation in Virginia. Virginia Capital partnered with a seasoned forester and lumber mill to purchase these assets from an institutional investor.
Storage Management owned and operated self-storage facilities. The company was sold in 2005 to its management.
HEALTH CAREHemoShear makes a human surrogate testing device that replicates the anatomical structure of the human blood vessel wall and blood fl ow pat-terns, providing superior pre-clinical drug response data than is currently available through traditional cell culture and animal testing processes.
Hunt Assisted Living built one of the largest port-folios of assisted living facilities in the Mid-Atlantic region before its sale to a strategic buyer in 1999.
Innotech manufactures proprietary equipment and supplies used to make multi-focal lenses. Innotech completed its initial public offering and was subsequently purchased by Johnson & Johnson for $134 million cash.
PRA International tests the safety and effi cacy of new drugs for major pharmaceutical companies and is one of the largest clinical research organiza-tions in the U.S. PRA was sold to a fi nancial buyer in 2001 for more than $100 million.
Health Care Partners is a specialty health care REIT and leasing company. Virginia Capital co-founded the company with a group of proven health care entrepreneurs.
INSURANCEFront Royal was a leading specialty property and casualty insurance company before its sale to a strategic buyer in 2001 for $165 million.
James River Group is a specialty property and casualty insurance company with a focus on the excess and surplus lines segment founded by key members of Front Royal’s management team. The company completed its initial public offering in 2005 and was sold to a Bermuda-based reinsur-ance company for over $570 million in 2007.
Kinsale Capital Group was formed as a start-up in 2009 by a group of seasoned property and casualty executives to take advantage of the dislocations in the insurance industry.
Control your own destiny
or someone else will.
— Jack Welch
11VIRGINIA CAPITAL PARTNERS
TOM DEARDORFF, PARTNER
Tom has worked at Virginia Capital Partners
since its inception, starting as an Associate and
working his way up to Partner and Managing
Director. He has invested in companies at
all stages of development including start-
ups, expansions, and acquisitions. Tom serves on the Boards of most
Virginia Capital portfolio companies and has extensive experience in
the health care, media and communications, consumer, insurance, and
Tom has invested in more than a dozen private companies and closed
over a dozen follow-on acquisitions. He has been active in the sale
or IPO of 10 private companies with a combined transaction value of
nearly $500 million.
Before joining Virginia Capital, Tom worked with an environmental
service fi rm and began his career at a boutique investment-banking
fi rm. He received his undergraduate degree from Tulane University
and liked it so much he stayed on and earned his MBA there as well.
Tom grew up in Decatur, Illinois and is passionate about staying fi t,
hunting and fi shing.
FRED RUSSELL, MANAGING PARTNER
Fred has been Managing Partner at Virginia Capital Partners
since its inception in 1996. He serves on the Board of all of
Virginia Capital’s active investments and has more than 25 years
of private equity experience. Fred has invested in more than
40 private companies and closed over three-dozen follow-
on acquisitions. He was an investor in three companies that subsequently completed
their IPO. Fred has also been active in the sale or IPO of companies with a combined
enterprise value of more than $2 billion.
Fred has invested in companies at all stages of development: from start-ups to buyouts.
He has extensive experience in health care, media and communications, consumer,
insurance and environmental industries. Fred was previously a Partner with Allied Capital,
a $1 billion private equity fi rm. He was also a Managing Director in a health care services
company, which he helped to build into a $70 million revenue business.
Fred has lectured on entrepreneurship and private capital markets at the Wharton
School, the University of Virginia’s McIntire School of Commerce, and the Darden
Business School. A Charlottesville native, Fred overstayed his welcome; attending the
University of Virginia and graduating from the McIntire School of Commerce. After
fi nally leaving the nest, he studied in Philadelphia where he earned his MBA from the
Fred lives in Richmond with his fi rst wife, Susan, and their three children aged 19, 17
and 15. Fred is passionate about being on the water, fl y fi shing, hunting upland birds
and fi nding a cure for Juvenile Diabetes.
I have not failed. I have found
10,000 ways that won’t work.
— Thomas Edison
13VIRGINIA CAPITAL PARTNERS
MATT AUSTIN, MANAGING DIRECTOR
Matt joined Virginia Capital in 2002 and became Managing Director in 2007. He currently serves on the Board of three portfolio companies. Prior to joining our team, Matt worked with BB&T Capital Markets, an investment-banking fi rm in Richmond, Virginia, where he was responsible for analysis and valuations for mergers and acquisitions and other corporate fi nance transactions. He has lectured on corporate fi nance and private equity matters at the McIntire School of Commerce and at James Madison University. Matt has also passed the Series 7 Exam and previously worked with a Registered Investment Advisor, where he managed money for high net worth clients.
Matt received his undergraduate degree with dis-tinction from the McIntire School of Commerce at the University of Virginia.
He currently lives with his wife and twins in sub-urban Richmond. Outside of the offi ce and home, he is an active volunteer for Bon Secours Hospice and also involved at Woodlake United Methodist Church in Midlothian, Virginia.
HUGH AARON, SENIOR ADVISOR, HEALTHCARE
Hugh joined Virginia Capital in 2009 as Senior Advisor, Healthcare. Hugh is a serial health care en-trepreneur. In 2006 he sold a national training fi rm focusing on healthcare regulatory compliance to a private equity backed buyer. Hugh held a variety of management positions within the health care industry including Regional Operations Director for a national medical practice management fi rm. Although retired from private practice, Hugh is a licensed attorney who formerly practiced health law with McGuire, Woods, Battle & Boothe.
Hugh earned his Juris Doctor degree (cum laude) from the University of Richmond, a Master of Health Administration degree from the Medical College of Virginia and a Bachelor of Business Administration degree from Christopher Newport College. Hugh teaches at the University of Richmond School of Law and at Virginia Commonwealth University (Medical College of Virginia Campus).
A Virginia native, Hugh lives in Hanover County with his wife and son. He is an avid cyclist, sailor and scuba diver.
CHRIS HUTTER, SENIOR ASSOCIATE
Chris joined Virginia Capital in 2007 after serving as CFO and General Manager of Hutter Wholesale Hardware, a Colorado-based designer’s architectural hardware showroom and distributor. Prior to this experience, he was Director of Merchandising and Logistics for Duck Head Footwear, a global-branded footwear supplier based in Lynchburg, Virginia. Chris received his MBA with a concentration in Finance from the University of Richmond. He is a graduate of Hampden-Sydney College where he double majored in German and Mathematics with a concentration in Computer Science. Chris is a 2010 Level III CFA candidate. A Lynchburg native, Chris now lives in Richmond with his wife and two young children. Like most of the Virginia Capital team, Chris enjoys a wide range of outdoor activities and also loves to spend time playing with his children.
JOEL MCINTYRE, ASSOCIATE
Joel joined Virginia Capital in 2007 as an Associate. He was previously an Analyst with Waterside Capital, a private equity fi rm in Norfolk, Virginia. Joel is a graduate of Brigham Young University where he studied International Relations and Business Management. A Placerville, California native, Joel now lives in suburban Richmond with his wife and daughter. He enjoys anything that gets him outdoors, preferably golf, football, and fi shing.
THE INVESTMENT TEAM
14 VIRGINIA CAPITAL PARTNERS
We enjoy meeting CEOs of growing companies, even if there isn’t
an imminent need for capital, and we are happy to meet without
any written material or agenda. To ensure confi dentiality, we have
no problem signing commercially reasonable non-disclosure
agreements in advance of our discussions. Even if our meeting
doesn’t result in a transaction, we can often provide advice or
direct you to other more specialized resources.
If you have opportunities or ambition greater than your current
resources, and you are curious how private equity can help you
achieve your goals, contact us today. Please visit our website for
1801 Libbie Avenue, Suite 201Richmond, Virginia 23226
Ph (804) 648-4802Fx (804) 648-4809
Imagination is more important
— Albert Einstein