Welcome to Genesis Park


Stories of Genesis Park

Alpheus Communications
Deal Type: Carve out from public corporation
Exit: TBD

In 2004 Genesis Park partnered with the El Paso Corporation to carve out a troubled telecommunications subsidiary. Genesis Park Partner Paul Hobby assumed the CEO role, rebranding El Paso Global Networks as Alpheus and transitioning into a fully independent entity. Alpheus has become the largest alternative fiber optic network in Texas through prudent use of leverage and disciplined re-investment of internally generated cash. Organically and through targeted M&A, Alpheus has grown steadily through all types of economic conditions: purchase of a data center in Austin, acquisition of a data center operator in Dallas, and five major fiber optic cable transactions.

Point One Communications
Deal Type: recapitalization
Exit: sale to financial buyer

In 2001, we participated in the rescue of PointOne from bankruptcy, providing senior debt and receiving equity warrants We understood the business and the market (IP transit globally) and liked our priority and our positioning were the company to get in trouble again. We received our principal back within a year and participated in the sale to Thermo Capital, recognizing significant gain on the equity and receiving mezzanine interest rates on a seller note.

Red Arrow Energy
Deal Type: start up
Exit: sale to strategic buyer

Genesis Park had a relationship for many years with two talented E&P entrepreneurs who in 2006 wanted to raise a drilling fund. We encouraged them to consider a corporate structure, a strategy they ultimately chose. Red Arrow Energy was born with three high net worth family offices as its initial investors, including a Genesis Park affiliate. Encap Partners assumed a control position as a second round investor. Red Arrow made strategic acquisitions in the Bakken Shale in North Dakota and entered into several different development alliances in the Bakken, eventually selling the majority of its position to Hess for $1.4 Billion in December of 2010.

CapRock Communications
Deal Type: carve out from public corporation
Exit: sale to financial buyer

After deciding to focus on the wireless industry in 2000, Genesis Park Partner, Peter Shaper, undertook a search for the right opportunity and in early 2002 was able to buy a satellite provider at an attractive price from the estate of McLeod Communications -- after the parent filed for bankruptcy. Mr. Shaper stepped in as CEO and through a series of acquisitions and organic opportunities CapRock became the largest provider of VSAT services in the world. As the originator of the transaction Genesis Park took an equity based warrant in addition to its cash investment.

FuelQuest
Deal Type: growth financing
Exit: sale to strategic buyer

In 2003, after observing the progress of a start up venture for a couple of years, we became investors in FuelQuest as it entered its growth phase. FuelQuest’s software solutions provide efficiency in bulk fuel management, and collateral products. The company was able to grow steadily during our investment period, acquiring large retail, transportation and public sector customers before its sale to a strategic buyer in 2008.

Commerical American Insurance Company
Deal Type: carve out from public corporation
Exit: sale to strategic buyer

In 2003 we were asked to participate in a buyout of a small mono-line P&C insurer from ING Barings. The buyer group insisted that this be done outside our Private Equity fund structure due to uncertainty in the holding period. We accepted a board position as part of our investment. Through a process of tightening and automating the business processes we were able to let the business scale revenue without scaling overhead. CAIC experimented with new products on our watch, some of which were successful and others not. We withdrew from the unsuccessful diversification efforts and sold the business in late 2010 to a private insurance holding company.

Genesis Park Development (a/k/a Western General Holdings)
Deal Type: stranded real estate asset
Exit: series of sales to strategic buyers

In 2000, we identified a Texas chartered insurance company that had wound up most of its insurance book but retained a valuable piece of urban real estate. The seller had special sensitivities that could not be satisfied by the larger concerns who had tried without success to acquire the property. We were successful and also acquired an adjacent parcel to create a uniquely developable tract. By a careful master planning exercise, we retained certain development rights and worked with the local neighborhood authority to add complimentary infrastructure. After selling the first tract to a national developer to return all risk capital, the second and third tracts were sold later for record prices for the neighborhood. The added public amenities won a prestigious award for quality in urban design.

Avalon Advisors
Deal Type: start up financial services
Exit: partial sale to financial buyer

In 2001, we were approached by local high net-worth account managers from a large international brokerage house and asked if we would assist and support their formation of a local boutique investment advisory firm. We helped structure a debt and equity offering -- raising capital from selected individuals who could add value and reputation to the launch. A requirement was that only approved individuals could invest rather than private equity funds. Helping to recruit investment talent and clients, we aided the steady growth of Avalon through several investment cycles, in 2008 the firm sold approximately one third of its equity to a private equity firm, and retained some equity going forward.

SAT Corporation
Deal Type: growth
Exit: sale to strategic buyer

In 2001, Genesis Park identified a growth investment opportunity in a small energy software company with a product that provided automated wireless data input for ERP systems popularly used in large industrial facilities common to the Houston region (refineries, chemical plants etc...) We were the only professional investor in the capital structure and assisted with board oversight, talent recruitment and client presentations. In exchange for that added value, we took an equity warrant to compensate for differentiated effort among shareholders. SAT was sold to Invensys in 2008. Post-closing Genesis Park served successfully as the shareholder representative for complicated post-closing intellectual property litigation management.

Intermat
Deal Type: carve out from public parent
Exit: sale to strategic buyer

In 2004, we joined with the founder of this niche catalogue software provider to buy the company back from MAXIMO, who had made a strategic decision to focus elsewhere in the ERP value chain. The price was attractive and our structural protection within the buyer group was excellent. One of Genesis Park’s principals was seconded to serve as Intermat’s CEO. After a less than two year holding period the company was sold to IHS holdings.

Vivante GMP Solutions
Deal Type: recapitalization
Exit: sale to strategic buyer

In 2009, we partnered with management to acquire the majority of the Introgen assets out of bankruptcy. Introgen had built out the clean room facilities and developed manufacturing expertise for its internal use, that we rebranded and re-launched as a third party manufacturer of viral vectors for customers who needed scaled quantities of their to biopharmaceutical portfolio assets. Vivante GMP Solutions was the result of that strategy. Vivante was acquired in 2010 by Swiss-based LONZA, one of the world's leading suppliers to the pharmaceutical, healthcare and life science industries.

Overton Energy Overton is a start up company focused on finding and executing on upstream oil and gas strategies sourced through data and relationships. In frothy energy markets, retail producing properties or “proven acreage deals” packaged and marketed by brokers are unlikely to generate acceptable returns. Overton sources deals through experienced working relationships in the North American E & P community. Good faith, prudent hedging and solid underwriting is the way Overton sources capital also. Genesis Park has a profitable history with Overton management, and is pleased to be included in the initial funding group.

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