Sidereal Capital Group Analysis
What is Sidereal Capital Group?
Process-driven growth equity for family-owned manufacturing firms
Location
Summit, New Jersey, United States
Employees
1-10
Founded
2012
Product Features & Capabilities
- Growth equity funding
- Acquisition capital
- Strategic guidance
- Financial expertise
- Operational support
- Process improvement consulting
Investment Focus
Sidereal Capital Group primarily focuses on providing liquidity solutions and strategic capital to closely-held, family, and founder-owned businesses. Their investment strategy targets lower middle-market companies, specifically in the manufacturing and industrial services sectors. They engage in various stages of investment, emphasizing growth and operational improvements within their portfolio companies.
Investment Geography
Sidereal Capital Group primarily invests in the United States and Canada.
Key Portfolio Companies
- MALCO - Specializes in producing mission-critical hardware fasteners for high-temperature environments in industries such as petrochemical, cement, and steel manufacturing.
- Peachey Hardwood Flooring - Manufactures premium hardwood flooring and related millwork products, offering handcrafted custom options to wholesalers and distributors.
- Palmetto Adhesives - Formulates and distributes hot melt and water-based adhesives for various industries, including packaging and product assembly.
- EWASTE+ - Provides IT asset disposition services, including data sanitation and electronic waste recovery, while adhering to regulatory compliance.
- Lenders Valuation Services - An appraisal management company that offers independent residential property valuations, leveraging a large panel of appraisers across multiple states.
- CashTech Currency Products - The largest servicer of check processing equipment and cash automation technology for financial institutions and retailers in the U.S. and Canada.
- Flexo Transparent, LLC - Provides flexible packaging solutions primarily for food grade and retail consumer products.
- UC Coatings, LLC - Manufactures wood protection products, including the ANCHORSEAL® line of end sealers for lumber.
- VanDeMark Chemical, Inc. - Produces specialty chemicals used in various industries, including paints, pharmaceuticals, and agriculture.
Notable Exits
Sidereal Capital Group has made two notable exits:
1. **Flexo Transparent**: Acquired on March 14, 2019, by C-P Flexible Packaging. The exit method was an acquisition.
2. The second exit occurred on January 10, 2018, but specific details about the company and the exit method are not provided.
1. **Flexo Transparent**: Acquired on March 14, 2019, by C-P Flexible Packaging. The exit method was an acquisition.
2. The second exit occurred on January 10, 2018, but specific details about the company and the exit method are not provided.
Recent Fundraising
$200 million
Management Team
- A. Jabbar Abdi - Managing Partner. He has a background in private equity and investment banking, having previously worked at Cordova, Smart, & Williams, LLC and GE Capital. He holds an A.B. from Harvard College and an M.B.A. from the Wharton School of Business.
- R. Kenneth Bryant - Managing Partner. Ken has experience as a Managing Director at RLJ Equity Partners and has worked in various roles including at Enron Corp. He also holds an A.B. from Harvard College and an M.B.A. from the Wharton School of Business.
- EJ Sloboda - Managing Partner. E.J. was a Principal at The Wicks Group of Companies and has a background in private equity and operations management. He earned a B.S. in Environmental Engineering from The Johns Hopkins University.
Other Considerations
Focuses exclusively on manufacturing and business services sectors; Targets $3M–$10M EBITDA businesses; Investment range $8M–$25M; Enterprise value range $15M–$60M; Serves family and founder-owned businesses as first institutional investor; Offers process-driven approach with strategic guidance and operational support
