D2 Equity Capital Launches Lower-Middle Market Acquisition Strategy

San Diego, California D2 Equity Capital has been formed by Dennis Dunn, a former Managing Director of Carlisle Enterprises, a San Diego-based private equity firm. D2 has entered into an agreement with Freestyle Capital of La Jolla, California, wherein Freestyle will serve as its predominant equity investor in an acquisition strategy targeting lower-middle market businesses located in the eleven western U.S. states and Texas.

Dunn served as Managing Director at Carlisle from 1992-2012, where he was actively involved in all phases of the firm’s acquisition process. Carlisle led or participated with equity partners in over 75 transactions during Dunn’s tenure. Dunn played a leading role in developing and executing Carlisle’s Small Business Initiative, a strategy which targeted lower-middle market manufacturing, distribution and business-to-business companies in the western U.S. The joint D2/Freestyle effort will leverage the experience and strategy in which Dunn was engaged at his former firm.

The D2 strategy also represents a carry-forward of Carlisle’s 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 continue to employ this complementary financial/operating model in making well-informed investment decisions and in working with management teams to improve and grow businesses post-acquisition.

Freestyle Investors, a family office located in La Jolla, 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 and flexible” family capital. Freestyle also brings to the new relationship its investment experience in certain consumer and business services segments, to complement D2’s industrial manufacturing and services sector expertise.

Please submit opportunities to Dennis Dunn at D2 Equity Capital, or the visit the D2 website at www.d2equitycapital.com.

D2 Investment Criteria

  • Companies generating revenues from $10 – $50 million; EBITDA from approximately $2-10 million
  • Opportunities deploying between $3 – $20 million per transaction
  • Western & southwestern U.S.-based companies
  • Segments of interest: industrial manufacturing and distribution; aerospace & defense; consumer products; energy products and services; and business services
  • Majority or minority recapitalizations and growth capital investments