D2 Equity Capital is executing a focused, private equity investment strategy which leverages significant transactional, financial and operating experience. The strategy targets investments in lower-middle market businesses as more fully described below.
D2 is led by Dennis Dunn, a former Managing Director of Carlisle Enterprises, LLC, a highly successful private equity firm based in San Diego, California. During Dunn’s tenure from 1992 to 2012, Carlisle invested in over 30 platform companies, with aggregate annual sales in excess of $5.0 billion, operating in a wide variety of industrial manufacturing, industrial service and consumer industry segments.
The D2 strategy draws upon Dunn’s experience in leading the execution of Carlisle’s Small Business Initiative (“SBI”). Mr. Dunn played a leading role in developing the SBI in 2005, which targeted lower-middle market manufacturing, distribution and business-to-business companies in the western U.S. In addition to structuring and executing SBI transactions, Mr. Dunn’s roles included active board governance and special projects such as strategic planning, raising equity and debt capital, and executing add-on acquisitions.
The D2 strategy also represents a carry-forward of the business model employed at Carlisle, an operationally-oriented approach to private equity investing. Carlisle utilized the expertise of the firm’s principals and investors, who were primarily senior Fortune 500 operating executives. D2 will draw upon a subset of this operating group in executing and monitoring acquisitions. Utilization of a complementary financial/operating model is invaluable in making well-informed investment decisions and in working with management teams to improve and grow businesses post-acquisition.
D2 has established a formal strategic relationship with Freestyle Investors, a family office also located in San Diego, which invests significant capital resources across multiple asset categories. Freestyle is led by Michael Stone, a highly successful private equity and hedge fund investment manager. As the former President of J.H. Whitney & Co., Mr. Stone led the investment efforts of over fifteen different funds which employed total capital in excess of $5.0 billion. Freestyle is characterized by its long-term investment horizon which deploys “patient” personal family capital, without the parameters, restrictions and short-term holding period of most institutionally-backed funds.
Manufacturing, service and distribution businesses are targeted with EBITDA of approximately $2-$10 million, and smaller companies with earnings below this range which are experiencing rapid growth. The broad array of industry segments fitting the criteria include industrial; aerospace and defense; oil and natural gas; engineered materials; clean-tech, including alternative energy, energy efficiency and water-related sectors; business services; consumer products, and other segments where the experience of the D2/Freestyle principals can be applied. The targeted geographic region will emphasize the western and southwestern U.S., where the proximity of the businesses will facilitate more frequent on-site involvement of the principals.
D2 is pursuing transactions utilizing the following types of structures:
- Majority and minority recapitalization investments in private companies
- Growth capital investments in private companies
- Consolidation of a fragmented industry by acquisition
- Acquisition of small public company corporate divestitures
The collective D2 and Freestyle successful investment records and experience represent a formidable partner for owners and management teams who are seeking a long-term and mutually beneficial relationship to grow and improve their businesses. For additional information, please contact Dennis Dunn at D2 Equity Capital:
122 15th Street #1209, Del Mar, CA 92014
(858) 461.1735 (office) | (858) 525.2808 (cell)
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