San Diego, CA, (September 16, 2014) – Huntington Capital, Fund II L.P (“Huntington”), a San Diego based lower-middle market mezzanine fund, has announced the exit of one of its portfolio companies, Residential Design Services, Inc. (“RDS”), one of the top outsourced interior design centers and installation services providers for home builders in the Western US. RDS has built extensive relationships with several of the top builders in the US and Southern California.
Huntington invested $3.2 million into RDS via a mezzanine loan as part of a recapitalization of the business in 2010. This recapitalization was led by DBI Capital (“DBI”), a private equity firm based in San Diego, CA. The investment helped the company by providing capital that allowed RDS to thrive during the economic downturn. RDS took advantage of this capital and outperformed the majority of its competitors while positioning itself to capitalize on the resurgence of the new home construction market in Southern California. Huntington’s mezzanine debt was repaid earlier this year via a term loan from the Company’s senior lender. Last week the Company was acquired by Trive Capital, a Dallas-based private equity fund. As part of this transaction Huntington’s remaining equity holdings where monetized, resulting in a high return on investment for the company, DBI and Huntington Capital Fund II in less than four years. Morgan Miller, Managing Partner, and Hope Mago, Sr. Associate, led the transaction for Huntington, supported by Frank Mora, Principal and previously with DBI at the time of the original transaction.
“RDS is a successful example of Huntington’s value proposition for entrepreneurs, which is to provide funding and expertise to help a company expand to a higher level of revenues and profits while contributing to the company’s financial and strategic sophistication. The team assembled by RDS executed their plan extremely well making it a pleasure to work with both RDS and DBI” commented Morgan Miller, Managing Partner for Huntington Capital.
Residential Design Services:
Residential Design Services is one of the top outsourced interior design centers and installation services providers for home builders in the Western US. RDS has built extensive relationships with several of the top builders in the US and Southern California. For more information, visit their website at www.resdesign.com.
Based in San Diego, CA, Huntington Capital is a leading mezzanine capital provider to lower-middle market companies throughout California and the Western United States. Founded in 2000, Huntington is currently operating out of its third fund, Huntington Capital Fund III, L.P. a vintage 2013 fund, with capital commitments from a group of leading institutional investors. Huntington seeks to invest in established lower-middle market businesses generating between $10 million and $75 million in revenues across a broad range of industries; investments are typically structured in the form of growth capital, buyout or acquisition financing ranging between $2.0 million and $7.0 million. The firm has invested in approximately 50 companies since its founding. For more information, please visit the company website at www.huntingtoncapital.com. Managing Partners for Huntington are Morgan Miller, Jr. and Tim Bubnack.