Seven Point Equity Partners Closes $120 Million Continuation Fund for RiteScreen
Seven Point Equity Partners LLC, a private investment firm based in Miami, announced the closing of RS7 Continuation Fund L.P., a single-asset continuation fund with approximately $120 million in equity commitments. The continuation fund transaction allowed certain investors in The RiteScreen Company LLC, an independent manufacturer of window and patio door screens in North America, to sell their stakes in the company to the new fund, while other investors chose to retain their ownership positions in the company. The continuation fund, managed by Seven Point, was supported by Seven Point's existing limited partners and new institutional investors led by Timber Bay Partners. Seven Point’s existing investors and RiteScreen's management team rolled significant proceeds into the continuation fund as part of the transaction. Selling investors who originally invested in RiteScreen in 2014 realized a gross multiple on invested capital of more than 10x as a result of this transaction.
RiteScreen has organically increased revenues faster than the underlying window and door industry since being acquired by Seven Point in 2014, according to a news release. A comprehensive operational transformation of the company, led by Seven Point's operating partners and the RiteScreen management team, offered window and door companies meaningful cost savings and industry-leading service. The company's growth has been further fueled by market share gains and the robust pace of screen outsourcing by OEMs. The next phase of RiteScreen's growth is expected to be driven by the continuation of these trends and accelerated by additional initiatives to market screens on an aftermarket basis to small and medium-sized businesses and directly to consumers. RiteScreen is led by CEO Chris Yankowich, who was previously the CEO of Dreamline, a glass shower door supplier that sold its products primarily through digital marketing channels. Read more about Yankowich and his growth plans for RiteScreen from a 2021 conversation with Window + Door.
The continuation fund transaction provides RiteScreen with ownership continuity and an expanded investor base with significant capital resources to drive organic growth initiatives and M&A opportunities.
Tom Burchill, managing partner of Seven Point, says, "RiteScreen was Seven Point’s first investment, and the comprehensive transformation of the business since 2014 has led to exceptional returns for our investors to date. We are excited to continue our partnership with RiteScreen and its management team and pursue the attractive growth opportunities available to the company." Seven Point Partner Mark Kammert adds, "The new continuation fund was capitalized by a group of high-quality limited partners, led by Timber Bay, and included significant support from existing investors, most of whom re-invested proceeds in the new continuation fund."
"Over the past several years, RiteScreen has focused on supporting our valued customer base by reliably delivering a comprehensive, one-stop portfolio of screen solutions," says Yankowich. "We have built our strong market position organically, strengthened our team at all levels with best-in-class talent, and developed innovative new products to meet the needs of our OEM window and door company partners. We look forward to continuing our relationship with Seven Point and are excited that our new investor base can provide additional capital to execute our growth strategy."
As part of the transaction, Nomura Securities International Inc. provided a senior secured debt facility to refinance the company’s existing credit facility and fund a portion of the capital required to purchase the interests of selling investors. Post-transaction, RiteScreen maintains a conservative balance sheet with low leverage, enabling it to invest aggressively in its growth strategy and pursue M&A opportunities.
M2O Private Fund Advisors LLC and William Blair & Company LLC served as financial advisors to Seven Point, and Latham & Watkins LLP served as legal counsel. Proskauer Rose LLP served as legal counsel for Timber Bay.
