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New York Capital Roundtable
David S. Lobel
 
 
Quick. Which private-equity subclass has generated better returns than all the others? Over the long term, says Thomson Financial, the answer is small buyout funds.
Better than all other types of buyout funds.
Better even than venture capital funds -- including early-stage venture funds.
In his New York Capital Roundtable presentation, David Lobel will describe why he and his colleagues at $200 million Sentinel Capital Partners focus exclusively on smaller, traditional middle-market businesses.
And he will address these questions --
  • What benefits are there to dealing with smaller companies?
  • Where does Sentinel go to find its deal flow? Where do its best deals come from?
  • Despite higher IRRs, are small buyouts an efficient use of capital, relative to the effort?
  • How are exits achievable for small buyouts?
  • Is there such a thing as "too small"?
  • Is working with less sophisticated managers more labor intensive?
  • Are there negatives, and how does Sentinel work around them?
  • How available is debt financing for small buyouts?
  • What are multiples in the small buyout market compared to the mid and large cap market?
Nine years ago, Lobel co-founded Sentinel with John McCormack, a colleague from First Century Partners, Smith Barney's venture capital affiliate, where Lobel worked for 15 years. Previously he was a consultant at Bain & Co., the international consulting firm. He received an MBA and an MS from Stanford University, and a BS from South Africa's University of Witwatersrand.
Major institutional investors in Sentinel include Citigroup, parent company of Smith Barney; JP Morgan; Fleet Banc Boston; Mayo Foundation; Prudential; GE Capital; PNC Bank; and Pacific Corporate Group.
Sentinel focuses primarily on consumer driven businesses, service businesses, franchising, and niche manufacturing. The firm invests up to $25 million per transaction in management buyouts, recapitalizations, restructurings, and growth-oriented financings of established businesses with $4-15 million of cash flow.
Upcoming Program
May 19 -- Stuart Aronson, General Manager, GE Global Sponsor Finance, "Trends in Today's Debt Market -- What Dealmakers Should Know About Structuring, Pricing, and New Products"
 
 
 
 
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