Investment Criteria

Size

  • EBITDA from $2 to $12 million

Industry Focus

  • Manufacturing
  • Value-added distribution
  • Industrial services
  • Business services
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PEHub

 PEHUB

Erin Griffith

April 12, 2010

Andrew Bohutinsky has left his position as a partner with Lincoln International to launch a new private equity firm called Desco Capital, peHUB has learned.  The Columbus, Ohio-based firm is backed by Desco Corp., a privately held group of 12 manufacturing and industrial technology businesses.  Desco Corp. will provide the private equity firm with more than $50 million in new equity capital for acquisitions.

The firm will focus on acquiring underperforming companies of up to $10 million in EBITDA in industries such as manufacturing, industrial services, and specialty distribution.  Its key differentiator is its ability to leverage the operating expertise of Desco Corp,’s executives, Bohutinsky said.  Desco Corp was founded in 1966 and is owned by Arnold “Al” Siemer.

Bohutinsky left Lincoln International in February to begin building his team and strategy, which launched in March.  Currently, the firm has two add-on acquisitions in its sights and is seeking new platforms.  Desco Capital has hired Paul Kestler from Desco Corp as a senior operational consultant, as well as Desco Corp.’s CFO Roger Bailey and one associate.  The various CEOs of Desco Corp.’s operating units will also be involved in Desco Capital’s efforts.  The firm is also seeking to add an additional associate.

From an email Bohutinsky sent to colleagues:

My team and I are based in Columbus, Ohio and work closely with the executives of Desco Corporation.  Desco Capital will leverage the operational strengths of Desco Corporation to partner with management and build long-term value.  Because Desco Capital will be investing its own pool of committed capital and is not an institutional fund, we will consider many transactions that other firms may not.  The hallmark of Desco Capital is flexibility and speed.  We move quickly and can often get comfortable with business characteristics that other firms tend to avoid.

I have thoroughly enjoyed my time at Lincoln International and have the highest respect for the firm.  When I started at Lincoln in 2002, the firm had approximately 15 investment bankers and one office in Chicago.  As of today, with over 130 investment bankers, Lincoln International is a global firm with multiple offices in the U.S., Europe and Asia.  It has been exciting to be a part of this growth and success.  Although it was a difficult decision, the opportunity to start a fully funded, differentiated private equity investment operation at this time of the economic cycle was highly appealing and one I felt that I could not pass up.