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Onex vet Troiano launches new firm

John Troiano, a former partner of Canada’s Onex Corporation, has launched a new firm, The Beekman Group, to target the small middle market.

Former Onex Corporation managing director John Troiano has reappeared as the founder of a new private equity firm, The Beekman Group. The firm, based in New York, is targeting the small middle market as a way to exploit the bottom hemisphere of the buyout space as other groups move upstream.

 

The group defines the small middle market as companies with enterprise values of $20 million to $75 million. According to its Web site, Beekman will invest in businesses with revenues of between $10 million and $100 million, and will look to write equity cheques ranging from $8 million to $30 million. The firm cites financial services, infrastructure, consumer products and services, and business services as its target industries.

 

Beekman has held two closes on its inaugural investment fund, Beekman Investment Partners, LP. The first came in February, when the firm closed on $32.33 million, and the latest, according to SEC regulatory filings, came this past month, when it closed on a total of $41.83 million. Beekman also contributed $420,000 as its general partner interest in the investment vehicle. The firm is seeking to capitalize the fund with a total of $125 million.

 

According to the filings, the firm has set an investment floor of $1 million. DB Zwirn Special Opportunities, LP and the Geliebter Living Trust were two limited partners named in the documents.

Carter Financial and Communications Investment Partners were also each mentioned as having received finders’ fees for placing investors in the fund.

 

Joining Troiano at Beekman is Andrew Cvitanov and Andrew Marolda, who each hold posts as managing director. Cvitanov was formerly the president and CEO of American Express’s Tax and Business Services group, and Marolda served as a director of finance in the American Express Global Corporate Services division.

 

While at Onex, Troiano took part in the Canadian firm’s investments in SKY Chefs, Celestica and Hidden Creek Industries.

 

Beekman’s Web site lists independent insurance brokerage Integro as its sole portfolio company. The firm took part in a private securities placement this past May in which Integro raised more than $300 million to facilitate its launch.