Daily News: June 19, 2013

MCG Capital Invests $12.6MM in Community Investors

MCG Capital announced the closing of a $12.6 million investment in Community Investors (CII). MCG’s investment consists of a senior secured unitranche credit facility, a revolving line of credit and an equity co-investment.

CII is a provider of software-as-a-service (SaaS) based community management software tools, serving a wide range of community associations and condominium associations located throughout the U.S. and Canada. MCG’s investment was made to refinance CII’s existing indebtedness. CII is a portfolio company of K1 Capital, a private equity firm focused on making investments in high growth software and technology businesses.

“We believe CII is a leading software provider within this vertical market niche. We are excited about our investments in the company and our relationship with K1,” stated Peter Malekian, executive vice president and managing director of MCG. “Based on our extensive work and diligence in partnership with K1, we believe that CII’s software stack provides meaningful value to its large customer base that leads to long-term and sticky customer relationships that form the basis for the company’s stable and predictable cash-flow stream. Further, based on our study of the markets in which CII competes, we believe that CII will continue to benefit from organic and acquisitive growth. This investment continues to highlight MCG’s strategy of investing in high-quality growth businesses across a diverse range of end markets.”

“We recognize MCG’s prior software investing experience and were pleased with their ability to work quickly and efficiently to analyze and execute on this financing,” remarked Taylor Beaupain, managing partner at K1. “We look forward to a successful partnership with MCG.”

MCG Capital is a solutions-focused commercial finance company providing capital and advisory services to middle-market companies throughout the United States.

K1 Capital is a Los Angeles-based private equity firm investing in high-growth software and technology companies.