Thursday, May 10, 2012

McColl's firm sells stake in Charlotte company

Charlotte private equity firm Falfurrias Capital Partners has sold its controlling stake in Commercial Credit Group Inc., it announced today.

The firm co-founded by former Bank of America Corp. chief executive Hugh McColl Jr. sold the ownership interest to Lovell Minnick Partners, a global private equity firm. It acquired the stake in CCG, a Charlotte-based provider of equipment financing for the construction, fleet transportation and waste industries, in 2010.

"We were able to provide capital to CCG during a time when most investors were shying away from the commercial lending market," said Marc Oken, who launched Falfurrias with McColl in 2006. "Our growth capital, combined with management's leadership, enabled the company to take advantage of dislocations in the financial market and achieve outstanding growth and financial performance when most competitors were on the defense."

Oken, Bank of America's former chief financial officer, said his firm generally looks to invest in companies for four to seven years. CCG's need for more capital, plus significant interest from prospective buyers, allowed Falfurrias to provide an attractive return for investors and land a strong partner for the company, he said. McGuireWoods advised the firm in the deal.

Falfurrias has expanded its financial services portfolio in recent years. In November, it announced it had invested in Dorsey Wright & Associates, a Richmond-based provider of technical investment research and money management products.