Firm: Peppertree Capital Management
Fund: Peppertree Capital Fund II
Target: $150 million
Legal Counsel: Thompson Hine LLP
Its debut fund at the 75 percent mark in invested, committed and reserved capital, Peppertree Capital plans to start marketing
According to Mandel, Peppertree Capital has pursued a tightly focused strategy with its $75 million debut fund, investing $3 million to $5 million at a time in small media, telecom and business services companies. The firm, founded in 2003, sourced seven of its nine deals, and played lead or co-lead on the majority of them.
Given its small pool of capital, Peppertree Capital has usually invited in co-investors on its deals, among them
The firm has one exit to trumpet from Fund I—the sale of an investment in 4G Towers, a Wisconsin company that leases tower space to cellular phone companies. The deal, though small by Peppertree standards, returned several times capital, according to the firm. The best-performing company yet to be realized is TMW Systems, a Cleveland-based provider of trucking logistics software. Through a combination of add-on deals and organic growth, EBITDA has more than tripled at the roughly 225-employee company since Peppertree Capital first invested in September 2005. The firm has indicated to backers it wouldn’t sell the company without generating a 4x return on its money.
Mandel is one of four founders of Peppertree Capital. He and co-founder Jeffrey A. Howard previously worked together as partners at Dallas-based